In your local area, identify a group of people with unsatisfied product needs who represent a market. Could this market be reached by a business organization? Why or why not?
What are the categories of situational factors that influence consumer buying behavior? Explain how each of these factors influences buyers’ decisions.
Full Answer Section
Reaching this Market:
Yes, a business organization can reach this market. Here's how:
- Product Offering: Develop a meal prep service with pre-portioned, healthy meals that cater to dietary restrictions.
- Convenience: Offer online ordering, home delivery, or convenient pick-up locations.
- Marketing and Promotion: Utilize social media marketing and target online platforms frequented by young professionals. Highlight the health benefits, convenience, and variety of meal options.
- Situational Factors Influencing Consumer Buying Behavior:
Consumer buying behavior is influenced by various situational factors beyond just product features and price. Here are some key categories and their impact:
- Physical Factors:
- Store atmosphere: Pleasant lighting, music, and layout can influence purchasing decisions.
- Product packaging: Eye-catching and informative packaging can grab attention and influence brand perception.
- Social Factors:
- Reference groups: Recommendations from friends, family, or online reviews can significantly impact buying decisions.
- Social status: Consumers might buy products associated with a certain social image or belonging to a particular group.
- Time Factors:
- Time pressure: Limited time can lead to impulse purchases or opting for convenient solutions like pre-made meals.
- Time of day, week, or year: Seasonal promotions and sales can influence buying decisions.
- Reason for Purchase:
- Planned vs. unplanned: Consumers buying for a specific need might be more focused on functionality, while unplanned purchases might be swayed by emotions or marketing.
- Gift-giving: Consumers buying presents might prioritize aesthetics, brand recognition, or perceived value over personal use.
- Mood:
- Happy or excited: Consumers might be more likely to make impulsive purchases or splurge on luxuries.
- Sad or stressed: Consumers might seek comfort food or products that offer relaxation or relief.
By understanding these situational factors, businesses can tailor their marketing strategies, product offerings, and in-store experience to better influence consumer behavior and drive sales.
Sample Answer
1. Unsatisfied Needs and Market Potential:
Here's an example of a potential market in your local area:
- Target Market: Busy young professionals with limited time for home-cooked meals.
- Unsatisfied Need: Healthy, convenient, and affordable meal options that cater to dietary restrictions (e.g., vegan, gluten-free).
- Market Potential: This market segment is likely growing as more people prioritize health and convenience but struggle to find suitable meal options with busy schedules.