Consumer Buying Behaviour Essay

Company Positioning 1. Introduction Positioning is a means in which a company differentiates its products and/or services from that of its competitors and then determine the market nince to fill within the broad market (Matzler & Bailom, 2013). In doing so, the company establishes the identity of the product or service in the eyes of the buyer or the customer. This is achieved through a positioning strategy where a company deliberately plans a brand or process so as to make customers buy it all the time. In this cases, everything about the product or services holds weight, even the wordings, as it associates with the consumer in one way or another.

THEORY AND MODEL Philip Kotler (1995) has developed model of consumer decision making process which is widely used to understanding customers purchasing decision. Kotler (1995) stated that a purchasing decision is determined by the customer’s personal characteristic and evaluation process, along with the external stimulation environment. The detail of theories will be state in the sequel: By theory of Kotler (1995), external stimulation can be divided in two groups. 1. Marketing stimulation which is linked to marketing mix (Price, Place, Product, and Promotion).

In todays world, the modern marketing is based on the reverse process, in which the first the customer needs and demands are identified. The subsequent market program of the firm depends on how the market identifies the potential customer, profiles them, target them and positions his offering in the minds of customer. These concept is also known as STP (Segmentation, Targeting

This approach can enable the organisation under consideration to gain benefit in controlling costs while fulfilling the demands of consumer services (Basu, 2001). The function of consumer service is considered as a designed standard for the satisfaction of consumers in such a way that the business intends to deliver to its consumers. Moreover, the order processing is designed for taking the consumer orders while executing the specific aspects of the consumers’ demand related to the products (Ellis,

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Determine and clarify the logistics cost. Logistics cost Logistics cost usually differently defined by different company. But, in general logistic is defined as the process of the management of goods that across all over the countries and also across the world. The company create a good path of their goods into supply chain or transport path which the use repeatedly to get a goods shipped to customers. Transportation cost Transportation cost is known as all the expenditure that involved in the movement of product, assets or something that needs the changes of one point to a different place that commonly passed to the customers.

In this concrete jungle, a process which satisfying customers’ demands are of critical importance to any parties has been a growing recognition. These processes are the means whereby products are developed manufactured and delivered to customers and through which the continuing service needs of the customers are met. The logistics concept is the thread that connects these crucial processes and provides the basis for the design of systems that will cost effectively deliver value to customers. Thus logistics management is essentially an integrative process that seeks to optimize the flow of materials and supplies through the organization and its operations to the customer. It is a planning process and an information based activity.

H. Physical Distribution This is the movement of a finished product / service to customers. In the physical distribution, the customer is the ultimate goal for a marketing channel and the availability of the product / service is an important part of the marketing efforts of the individual channels participants. I. Out sourcing / Partnerships These trends logic is that the company is increasingly focusing on those activities in the value chain where it has a distinct advantage, and everything else will be outsourced. This movement is a particular proof logistics