Organizational Buyers
A large portion of the market for goods and services is attributable to Organizational Buyers, as opposed to Individual Buyers. In general, organizational buyers, who make buying decisions for their companies for a living, tend to be more sophisticated than ordinary consumers. However, these organizational buyers are also often more risk averse. There is a risk in going with a new, possibly better (lower price or higher quality) supplier whose product is unproven and may turn out to be problematic. Often the fear of running this risk is greater than the potential rewards for getting a better deal. In the older days, it was said that “You can’t get fired for buying IBM.” This attitude is beginning to soften a bit today as firms face increasing pressures to cut costs. Organizational buyers come in several forms. Resellers involve either wholesalers or retailers that buy from one organization and resell to some other entity. For example, large grocery chains sometimes buy products directly from the manufacturer and resell them to end-consumers. Wholesalers may sell to retailers who in turn sell to consumers. Producers also buy products from sub-manufacturers to create a finished product. For example, rather than manufacturing the parts themselves, computer manufacturers often buy hard drives, motherboards, cases, monitors, keyboards, and other components from manufacturers and put them together to create a finished product. Governments buy a great deal of things. For example, the military needs an incredible amount of supplies to feed and equip troops. Finally, large institutions buy products in huge quantities. In many cases, government buyers are also heavily bound to go with the lowest price. Even if it is obvious that a higher priced vendor will offer a superior product, it may be difficult to accept that bid. So, that was my thoughts about Organization Buyers in general. You can share your thoughts as well.
Consumer Research methods
Now, I should share about research methods in consumer behavior as I believe it is the most complex topic for any marketer to discuss about. Consumer Market research is often needed to ensure that we produce what customers really want and not what we think they want. There are two categories of research methods - primary and secondary.
Primary research is the research that you design and conduct yourself. For example, you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter. Secondary research, in contrast, involves using information that others have already put together. For example, if you are thinking about starting a business making clothes for tall people, you don’t need to question people about how tall they are to find out how many tall people exist. That information would have already been published by the Government. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete.
For example, Coca Cola did a great deal of research prior to releasing the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace the traditional Coke.
Primary research is the research that you design and conduct yourself. For example, you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter. Secondary research, in contrast, involves using information that others have already put together. For example, if you are thinking about starting a business making clothes for tall people, you don’t need to question people about how tall they are to find out how many tall people exist. That information would have already been published by the Government. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete.
For example, Coca Cola did a great deal of research prior to releasing the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace the traditional Coke.
Consumer Behaviour
In this post I am going to share my study of consumers behavior. This is a part of management which deals with psychology of the consumers. The main reason to undergo this study are the psychology of how consumers think, feel,reason and select between different alternatives. In the dictionary of management consumer behavior is "The study of individual, groups or organizations and the process they use to select, secure, use and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these processes have on the consumer and society".
The study of this behavior is important in the context of marketing a product. This helps in a better marketing campaigns according the behavior of the consumer and reach the people. This also helps in building marketing strategy for introducing new products. Consider the example a high cost sedan should not be either launched during recession. During the number of people who are ready to buy a luxurious sedan are minimum. Spending a huge amount in marketing about a sedan during this time is absolute waste. This marketing would never have an impact in the mind of the people even during the later stage when there is boom in the market.
The study of this behavior is important in the context of marketing a product. This helps in a better marketing campaigns according the behavior of the consumer and reach the people. This also helps in building marketing strategy for introducing new products. Consider the example a high cost sedan should not be either launched during recession. During the number of people who are ready to buy a luxurious sedan are minimum. Spending a huge amount in marketing about a sedan during this time is absolute waste. This marketing would never have an impact in the mind of the people even during the later stage when there is boom in the market.
A fortune that was worth it
I use the government bus very often. This helps me to connect with the people and helps me to understand the psychology of the people and gives me a view on the culture of the place. This happened when I was in India, a few years back. I was in a place called Chennai, for two years. It was December and it was raining. I was sharing my seat with a female who would be approximately around 20 years. There was an accident and the bus was struck in a traffic jam. We are grown to believe the concept that when we talk with our co-passengers, we intrude into their privacy. But this young girl did not seem to bother about all that and we struck a conversation. As the conversation flowed, she told that she had a weird friend who spent a fortune to have fun! I thought she was talking about party, love and pubs! But I was shocked when I heard the story. Could somebody do it or even if it was done would that be considered weird?
So what was the story about? Her friend, named M, was having a bad day. She did not know what was going wrong, she needed loneliness! She knew that could settle her real bad day. So she hired a taxi, asked him to go about the city and she spent a fortune for the ride. This friend of mine was shocked that could a female do that ever, but I thought it was the perfect thing to do! A drive with breeze on the face and time to be aloof could serve the best healer. Was the way weird or non cultural? I do not have comments for it, but I know that it was the most beautiful way to reconnect with life! And to end it, whatever connects with life is culturally correct.
And.. Happy New year to Everybody out there :).
So what was the story about? Her friend, named M, was having a bad day. She did not know what was going wrong, she needed loneliness! She knew that could settle her real bad day. So she hired a taxi, asked him to go about the city and she spent a fortune for the ride. This friend of mine was shocked that could a female do that ever, but I thought it was the perfect thing to do! A drive with breeze on the face and time to be aloof could serve the best healer. Was the way weird or non cultural? I do not have comments for it, but I know that it was the most beautiful way to reconnect with life! And to end it, whatever connects with life is culturally correct.
And.. Happy New year to Everybody out there :).
What is culture?
This is the most intriguing question that can’t be just answered very easily. I was wondering how to define this complex word. That is when the most beautiful thing happened, an incident which I would remember all my life. I was walking along the path when I was struck by a ball. I fell down and was lying on the ground. I was very angry and got up on my feet to scold the one who recklessly threw the ball. As I was searching for the kid, I found him. I scolded him for his mischievous activity, but he kept quite. After some time, the kid explained. His explanation made me cry!
This young boy saved my life! As I was on the phone and talking, I did not notice that a hole had been dug for maintenance and I did not notice it. If the ball had not struck, then I would have fallen into the hall. I considered myself a cultured responsible person, and my culture made me shout at him. Then what would you term the boy’s culture? In any scenario, it is wrong to hurt someone, but if it is to save somebody’s life, then?
Culture is doing something which is right to our conscience and then which is right according to the society! So if you think you knew what culture means, then rethink about it.
This young boy saved my life! As I was on the phone and talking, I did not notice that a hole had been dug for maintenance and I did not notice it. If the ball had not struck, then I would have fallen into the hall. I considered myself a cultured responsible person, and my culture made me shout at him. Then what would you term the boy’s culture? In any scenario, it is wrong to hurt someone, but if it is to save somebody’s life, then?
Culture is doing something which is right to our conscience and then which is right according to the society! So if you think you knew what culture means, then rethink about it.
An ode to culture
Cultural Intellect, what does it mean to you? But I think before I go to explain that, I need to speak about myself. I am Sed, a different name indeed! Can you guess my origins? That is where my story begins! It is my origins that inspired this blog. I am born to American mom and a European dad in China! So this must have given you an insight into the amount of cultural similarities, differences, opinions that I would have experienced! I know that there are lots of blogs that discuss about the cultural differences, cultural shock and so on.
But the story here is not going to be about the cultural shocks that I have faced, but it will speak about the culture on whole! Read this blog to know about it all, for culture can never be expressed in one post, can it?
My friends asked the reason why did I name it ISCAR? The reason is simple, the name looks like I am going to write about something else, but here I have explained that I am going to write about culture. It is so similar to culture, on the outset it looks confusing but a small explanation here and there makes it a wonderful topic to look at. The name of the blog is an ode to culture!
But the story here is not going to be about the cultural shocks that I have faced, but it will speak about the culture on whole! Read this blog to know about it all, for culture can never be expressed in one post, can it?
My friends asked the reason why did I name it ISCAR? The reason is simple, the name looks like I am going to write about something else, but here I have explained that I am going to write about culture. It is so similar to culture, on the outset it looks confusing but a small explanation here and there makes it a wonderful topic to look at. The name of the blog is an ode to culture!
