Now that the environmental scan has been completed, the new product development
ID: 359159 • Letter: N
Question
Now that the environmental scan has been completed, the new product development group needs to conduct an analysis of consumer buying behavior in Dyson Ltd industry. Outline how the team would conduct this analysis, while considering both current and potential product users. Your analysis should address how you would determine the following:
What needs are being met by the product purchase? What are the benefits to the consumers? Make sure that you differentiate between features and benefits; go beyond manifest motives and consider latent motives.
Who is involved in the purchase process? Who are influencers, buyers, and users?
Where are the products sold (distribution channel)?
How often are the products purchased? Is there seasonality to sales?
Explanation / Answer
Solution:-
Since the detailed case of Dyson Industry is not made available in the question, only general answer is being submitted
Consumer buying behavior entails studying of all possible aspects involved in consumer decision making process of making a purchase. Understanding consumer buying behavior is one of the core functions of a marketing department and it is a very critical task that the company understands the needs, desires and wants of the consumer. Without this understanding, the company may not get the desired success in a market. Consumer buying behavior analysis could be done for both new and existing customers and can help in gaining useful insight into buying behavior of the consumer.
To understand consumer buying behavior, it is necessary to understand few basic principles. These are mentioned below for reference.
1. Value proposition of the product - A consumer is going to buy a product if he sees any value in the product. The value is defined by the value proposition of the product which describes the value which the consumer sees in the product. For eg Kleenex was introduced as a facial tissue to remove cold cream but the consumer saw value in the product by using it as a tissue paper to clean face or to use it as a disposable tissue for colds. Recognizing the value proposition which is derived by benefits and intended use of the product is extremely critical for understanding consumer buying behavior.
2. To understand the target market clearly, it is essential to know both manifested and latent motives. Manifested motives are generally classifies as ulterior or utility motives. These are directly connected to the benefits or features of the product. Latent motives are generally related to hidden desires which are being fulfilled by purchase of the product. For e.g. any car model is capable of transporting people from point A to point B but luxury cars fulfill the latent motive of feeling superior or hedonic desire to feel rich by buying them. For understanding consumer buying behavior it is critical to understand both manifest and latent motives.
3. The purchase process - The process generally considers of three stakeholders and they are called as Influencers, Buyers and Users. Influencers consist of the group which are instrumental in forming product opinions in mind of consumers. Product reviewers, critics, elders of the family, children can be considered as typical Influencers in a purchase process. A buyer is somebody who pays for the product and may or may not use the product. The end user is called as the User of the product. For e.g. the choice of color, model, budget of first family car could be influenced by spouse and children. It would normally be the father who would be paying for the car and thus he is the Buyer. If mother is going to use it for picking up children from school, then she will be user. Understanding who is the Influencer, Buyer and User are critical to understanding of consumer buying behavior.
For understanding consumer behavior, it is also necessary to understand sales channel. Sales channel primarily would dictate what kind of customers would be purchasing the product. It would also determine other things like frequency of purchase, ticket size of the purchase and other related things.
Therefore from above examples, it is clear that understanding consumer buying behavior is critical to product success in its target market.
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