1. The 80/20 rule applies to my product which is a car. This is because in the world, 80% of cars are owned by a 20% population. Although 80/20 rule applies in the case of a car, it does not apply in the case of a mobile phone. Ideally, the possession of a mobile phone is almost equal to the population in world.
2. List of phases of consumer decision process
- Problem recognition
The consumer grows a need of having a car following the changes in his or her income status and the need to be self-reliant and enhance convenience in movement.
- Search process
The consumer goes out to the market to research for the best car that satisfies his or her ego.
- Evaluating alternatives
The consumer has already determined the best car he or she is satisfied with. In the phase, the consumer starts making the best deal to get the car. The deal is usually based on price and quality.
- Selection Stage
The consumer decides when and where to purchase the desired car. In this phase, the consumer may have a prior experience with his or her exact decision.
- Evaluation of decision
After the consumer has bought the car he or she evaluates it on basis of whether it satisfies her or him.
3. Example of a derived Demand
Demand for transportation
Demand for coal
4. Type of involvement is involved with your product
The involvement involved for a car is very high. This is because a car is very expensive and is of high significant to customer’s life.
5. List of situational influences for a car
- Social environment-
The consumer behaviour towards the purchase of a car is affected positively or negatively by social factors. Such factors may include his or her family, friends, colleagues and also the social class one lies. For instance, a low income earner will not be able to purchase a car thus his or her behaviour is impacted negatively
- Cultural environment
The provisions of a given community may affect the consumer behaviour towards car purchase. For instance, a given culture may condemn a given model of a car. In such a situation, the consumer from that culture will not be willing to buy a model despite his or her satisfaction level.
- Psychological factors
Motivation, perception, beliefs and attitude of a consumer towards a purchase of a car may influence his or her behaviour. For instance, lack of motivation and negative attitudes towards a model of a car may discourage a consumer from buying the car model.
4. Product adoption process
Awareness- the level of information that a consumer has on a given model of a car may affect his or her purchase. This is to mean that a consumer will not be able to buy a car if he does not have enough information about the car.
Interest- A consumer will want to have more information about the car model he or she wants to buy
Evaluation- The consumer will have to decide whether a given model of a car is beneficial to him or her.
Trial – A consumer will have to purchase the car in order to determine whether it is satisfactory.
Adoption/ rejection- Following the satisfaction level, the consumer will decide whether to remain with the car or dispose it to buy another. If the car meets his or her satisfaction level, the consumer will keep the car otherwise it will be sold.
7. 4 bases of segmentation
- Geographical segmentation
Under this segmentation, I am going to segment my car consumers with respect to regions, population density and climate.
- Demographic segmentation
Under this segmentation I will segment car consumers according to age, income, occupation and social class. For instance, luxurious cars will be availed for high income class, sport cars and celebrity cars will be availed for the young generation.
- Psychological Segmentation
Car consumers will be segmented with respect to their interests, value, attitudes, personality and opinions
- Behavioural segmentation
Car consumers will be segmented with respect to various examples namely, product benefits, user status, occasions and usage rate.