Consumer Traits and Behaviors paper and Presentation References Identify at least three psychological processes and three social processes that may influence consumer behavior. Eisenstein, E. M. (2006). Psychological Processes in Financial Decision-making: A Consumer Perspective. Advances in Consumer Research, 33(1), 403-405. Retrieved from EBSCOhost Consumers base their purchases in their innate needs and their acquired needs.
They also included a share of the costs associated with running the hubs at two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover these costs. Does this fact imply that United should discontinue these flights? Explain. Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely.
EGT 1 Task 2: Elasticity Jeffery S. Short #0257373 Element A: The world of business exists because of the consumer. Business owners are concerned if customers will purchase the goods they offer and how they will react to the constant changes that occur in the marketplace. If a business owner can estimate how consumers will react to product offerings or the changes to those products, then they can offer better services while maintaining profitability. Economists study the many variables involved in the marketplace by observing how consumers react to changes in products, pricing, supply and demand in an effort to classify or codify trends. They then develop calculations to categorize these consumer patterns, and then use them as tools to provide insight into consumer reactions and possible future buying patterns.
One way to narrow the market is through market segmentation. Market segmentation allows an organization to target consumers who will value a particular service based on common characteristics. It is also considered to allow the organization to bend the supply to the will of demand (Berkowitz, 2006, p. 164). Lifestyle is an important aspect affecting a consumer’s decision-making process. It is a lifestyle in which people live as demonstrated by how they spend their time, what they think, and the interest they have (Berkowitz, 2006, p. 111).
Group Case Write-Up: American Airlines What is “Value Pricing” and why did AA introduce it? Value based pricing is a business strategy that sets prices primarily on the perceived value of the good or service to the customer, rather than on the actual cost of the good or service, the market price, competitors price, or the historical price. American Airlines’ value pricing has three key points that compromise the new plan, which are the following: 1) 4 four different fare prices for a given flight (first class, regular coach, 7-day advanced purchased discount coach, and 21-Day advanced purchased discount coach); 2) prices are based on mileage; and 3) lower prices would be available to more business and leisure travelers due to the fact that the new fares were set below the levels of the comparable existing fares. American Airlines introduced value pricing for several reasons. The first major reason was the nature of the airline industry.
“To help management plan and evaluate performance, managerial accountants frequently prepare flexible budgets based on different levels of volume” (Edmonds, 2007, pg 1061). In order to create a flexible budget, management must understand fixed and variable costs, and how they relate to the products produced. The fixed and variable costs associated with the flexible budget are also the same costs used in the Cost-Volume-Profit Analysis. The Cost-Volume-Profit Analysis helps management make decisions on capital. Understanding the difference between static budgets and flexible budgets are also beneficial to management in making the educated decisions on which budget will be more beneficial.
Contingency Plan - We try to map two scenarios that might cause us to re-evaluate our marketing plan such as unanticipated reaction from the customers or the competition. Situation Analysis Customers - The cushion pads market consists of many different segments, some are direct customers and some influence the market’s direction and should be considered when analyzing the situation. Pile hammer distributing/renting companies - These companies are the contractor's usual suppliers of cushion pads and therefore are an important segment in the market
Explain key concepts such as segmentation, target marketing and product positioning. 2. Explain the four elements of the marketing mix: product strategies, pricing strategies, promotion strategies and distribution strategies. 3. Classify factors in the external marketing environment as either opportunities or threats as well as interpret internal company factors to create a SWOT analysis.
Week 2 DQ1 Buyer Behavior. The typical buying process consists of the following sequence of events: problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase behavior. What specifically do you do as a consumer in each of these stages in a high involvement purchase like buying a house or a car? List the four main psychological processes as discussed in the text and what should marketers do to manage these four psychological processes affecting consumer
• Describe the various types of organizational buyers and consumers and the factors that influence their purchasing decisions. Week Three: Marketing Strategy: Product and Price • Describe the relationship between differentiation and position of products or services. • Analyze the impact of the product life cycle on marketing. • Identify the appropriate price strategy that should be used in the development of the strategic marketing plan. Week Four: Marketing Strategy: Place and