Analysis Bargaining Power Of Buyers Commerce Essay
Tile industry in Pakistan has 4-5 major players namely Shabbir Tiles, Master Tiles, Karam Tiles and National Tiles. The market comprises of urbanized and semi-urbanized population which is huge market for these players to cater to. The GDP growth rate however it is not appreciable but it suggest that the market will
further increase by the GDP growth rate. With the presence of this huge market every company in the tile industry large number of customers.
Tile industry is also rapidly capturing the marble floor users because marble-tiled floors require polishing in the facility where they are places and this is additional cost that marble flooring requires over tile flooring. Although comparing marble tile with respect to quality and functionality it enjoys the benefits that include durability, aesthetics, hardness, higher abrasion resistance and better water resistance than other tiles no matter how hard a tile is.
Tiles as a product would lie in the high involvement consumer buying behavior because buyers require a lot of information as they are not in a habit to purchase it as the need arises when a new residence or office is built or the old tiles are after a long life are now in a bad order and needs to be replaced. Buyers are well aware that they have to make the decision after careful and keen selection and this is why their behavior is variety seeking.
Price except for luxury product matters in every product, but as the buying behavior is not of frequent in nature an the buyers are not well informed about the price change occurring in the market therefore the market is not price sensitive
Marketing efforts in the Tile industry are not up to the mark and most of the companies are