Service Output and Segmentation
I. INTRODUCTION:
Some of the services ultimately desired by consumers include bulk-breaking, spatial convenience, Waiting and Delivery time, and providing a breadth of assortment.
Segmentation involves identifying groups of consumers who respond relatively similarly to different treatments. In general, we want to find segments that contain people who are as similar as possible to each other while, simultaneously, being as different as possible from members of other segments. Thus, for example, members of what we might term a price sensitive food segment are likely to seek out the lowest priced retailers even if they are not located conveniently, buy larger packages, switch brands depending on what is on sale, and cut coupons. The “fussy” segment, in contrast, may shop either where the best quality is found or at the most convenient location, and may be brand loyal and not cut coupons. Note that not all members of each segment will be completely alike, and there is some tension between precision of description and cutting the segments into too small pieces. The idea, here, then, is for different channels to serve different consumers (e.g., price sensitive individuals are targeted by Food 4 Less while more upscale stores target the price insensitive).
A. Objectives: * To explain what is service output and segmentation * To identify the Service output four types of core benefits: * Segmentation aims to match groups of purchasers with the same set of needs and buyer behaviour and to find attractive markets.
II. DISCUSSION:
Service Outputs
Service outputs (SOs) are the productive outputs of the marketing channel that end-users have demand and preference for. The SOs represent all of the aspects of the shopping experience that affect how an individual buys a product as opposed to simply what they buy.
Service outputs are some benefits that end-users enjoy during purchase of any good. Consumers always have to go through some steps of
Some of the services ultimately desired by consumers include bulk-breaking, spatial convenience, Waiting and Delivery time, and providing a breadth of assortment.
Segmentation involves identifying groups of consumers who respond relatively similarly to different treatments. In general, we want to find segments that contain people who are as similar as possible to each other while, simultaneously, being as different as possible from members of other segments. Thus, for example, members of what we might term a price sensitive food segment are likely to seek out the lowest priced retailers even if they are not located conveniently, buy larger packages, switch brands depending on what is on sale, and cut coupons. The “fussy” segment, in contrast, may shop either where the best quality is found or at the most convenient location, and may be brand loyal and not cut coupons. Note that not all members of each segment will be completely alike, and there is some tension between precision of description and cutting the segments into too small pieces. The idea, here, then, is for different channels to serve different consumers (e.g., price sensitive individuals are targeted by Food 4 Less while more upscale stores target the price insensitive).
A. Objectives: * To explain what is service output and segmentation * To identify the Service output four types of core benefits: * Segmentation aims to match groups of purchasers with the same set of needs and buyer behaviour and to find attractive markets.
II. DISCUSSION:
Service Outputs
Service outputs (SOs) are the productive outputs of the marketing channel that end-users have demand and preference for. The SOs represent all of the aspects of the shopping experience that affect how an individual buys a product as opposed to simply what they buy.
Service outputs are some benefits that end-users enjoy during purchase of any good. Consumers always have to go through some steps of