Consumer Buying Behaviour Model
The company focused on the unique needs of consumers in three different segments.The above market segmentation design, based on product benefits, is widely recognized as the state of the art and superior to traditional segmentation schemes based on industry type or consumer size (Moriarty and Reibstein 1986), sustaining a segmentation strategy based on benefits alone is often difficult for the product market. Eventually, in a competitive market, competitors are able to offer equivalent products and the abnormal profits start to deteriorate. This situation is especially prevalent for industrial raw materials and supplies that are difficult to differentiate by functions and features alone. As the product market turns a commodity (Kotler 1988), price and service become important buying criteria for some consumers.This research explores a consumer buying behaviour based model suitable for segmenting consumers in competitive markets. The concept of consumer buying behaviour based segmentation has been now recognized since long but still very few applications of the approach have been reported in the marketing literature. In this paper, the consumer buying behaviour model has been generally applied to segment consumers which can be used by many large industrial companies. In addition, it will be appreciated how segmentation analysis can be used proactively to influence consumers movements to segments that are mutually beneficial to the seller and buyer. In contrast, previous application work (Moriarty and Reibstein 1986) attempted to uncover existing segments as a way to position products strategically.The consumer buying behaviour model has derived largely from the economic theory of consumer demand and the normative concepts of economic man and rational behaviour.