Consumer behaviour refers to the factors that influence the customer decision to buy a product (behravesh). The factors are such as psychological, cultural, religious, situational and societal reasons.it also explains why the consumers use a certain product and the dispose later after use.
This refers to the stimuli that is presented to the customers through the environment so as to evoke a response from them and result to using the product (ferrell). Uber uses environmental factors to attract their consumers as a result they are able to earn high revenue from the customers. The environmental factors are such as:
Price refers to the cost charged for the services offered by Uber (segmentation solutions). The prices of Uber are very cheap compared to other prices in the market. They charge less per kilometre for their transportation services. This has enabled Uber to become a leading transport company because of their high affordability to the customers. Price is a great determiner in attracting customers and Uber has been able to utilise this aspect through offering quality services at very low prices, which makes the customers always chose them above other customers.
In addition to that is the environmental factor of distribution. This refers to how the product is spread over geographical areas.it requires that for a product or service to reach many customers, they should have a wide geographical coverage. Uber has done this by being able to take their services to many countries across the globe, where they offer high quality services to the customers. Uber has also enhanced its distribution through their Uber app where the customers can access their services easily at any part of their country as long as Uber services are available in the region.
This refers to the characteristics of customers and the way they make decisions on what products to use (james michael stewart). Uber customers are influenced by consumer factors such as lifestyle which refers to the way of living of the customer. This influences the products and services that the customers consume. Uber services has used this factor to attract customers by offering high quality services to the customers. This has been achieved by offering classy and high quality services to the customers. Uber offers services urgently to the customers preventing waste of time which appeals to the customers.
This refers to the position or the way an individual is seen in the society (je). Uber customers are mostly influenced by their social classes which sometimes does not allow them to be seen using public transport and thus use Uber which is faster as well as portrays a high social class. Uber has been able to provide for this by offering their services in a classy way with clean and well maintained cars. They also offer fast services and an ease of reach to access of the services by being distributed globally and also through the Uber application that enables customers to order cabs at their convenience.
Family factors also influence how the customer choose a product. The family beliefs can result to a customer using a certain product. If a family is used to the use of Uber, then the family members will grow with the idea that they can only travel using Uber services. Uber has been able to get customers through this factor by offering services to the customers that are friendly and customised for the different needs of individuals. (je)
Level of Customer Involvement
Most Uber customers have a low involvement in the making decisions to buy a product (kotler). This is because the use of Uber services is a routine behaviour to most customers and thus do not have to think too much on which services to use apart from Uber. The customers also do not keep comparing which other transport services they can use because they are used to Uber and have developed a loyalty to Uber. Buyer behaviour such as the relationship to a product is common with the low involvement decision levels. This is brought about by the fact that the stronger the customer is related to a product then the less he or she will think or do comparisons when choosing a product.
Customer Decision Making Process
This refers to the stage where the customer discovers that a certain product or service is necessary for them (marone). This arises when there is a certain necessity to be fulfilled by a certain product or service. Uber service can use this stage to market by insisting to the consumers that they require a transportation service that is urgent an of quality service. Uber informs the customer that this services will come to them cheaply. This results to the customer having the curiosity to use the product and in this way need recognition is developed.
Search for information
This is the stage which the customer looks for the right information about the product and service that will satisfy their needs fully (marone). The customer searches from many sources such the internet and through advertisements in the radio and televisions. Uber company marketing is influenced by this stage through ensuring that they are a top brand in the market. This results to Uber always being at the top of the customer list of preference when searching information.
This refers to the coming up with a favourable choice of a product (mizrahi). Customers always choose the product that is favourable to satisfy their needs. Uber in relation to this ensures that they constantly remind their customers of the availability of their products through advertisements and other print media as well as through the internet.
Product choice and purchase
This is the stage where the customer settles on a product and then buys (mordecai lee). Uber company realises the need for marketing at this stage and involves in marketing strategies that are meant to attract customer. The marketing methods are such as the giving of discounts to customers as well as gifts for the use of the product.
Post purchase use and evaluation
This is the stage after the customer has used the product and evaluates whether the service was satisfactory as they had expected (mordecai lee). Uber at this stage involves in activities to reach the customer such as congratulating them on the use of the service or thanking them for being part of the large Uber family.
Disposal of the product
This stage is where the customer does away with the product after satisfaction (nicolas bacon). Uber company realises the need of marketing at this stage. Uber ensures that they offer long lasting impression with their services to the extent that the customer will want to come back for more services in the future.
This is dividing the customers to different groups of same characteristics.
Behavioural segmentation is one of the methods used by marketers and it refers to the segmenting of a market into groups of customer with a similarity of behaviour (ferrell). Based on the behaviour of the customer, Uber characterises the customers into such as their usage rates of the services of Uber. The buyer status such as income also is used to put the customers into groups depending on how they behave with their incomes. The lifestyles of the customer are also used to differentiate the customers based on their lifestyle and how it influences their behaviour. Moreover, the market is targeted through demographics. This is when the market is divided according to the composition of the population. Uber company recognises the characteristics of this segment such as the age of the customer. Uber thus provides the customers with customised services to satisfy the needs for each age bracket. The gender characteristic is also considered and the product are customised so as to be fit for both genders without discrimination. Religion is another characteristic in this bases and it well recognised by Uber by being accommodating to all religions without discrimination.
The best market target is that of behaviour (kotler). This is the best target because it represents a niche that marketers have not been able to exploit by not realising the different behaviour of the customers for their products. This provides a profitable market because of the fact that it is growing as the behaviour of customers keep changing with time.it is easily accessible to the company because of the many ways that Uber could use to address the different behaviour characteristics of the customers. This segment also fits the objective of the company of satisfying the customer needs based on their different characteristics.
Target market strategy
Uber should focus on the behaviour segment. This is because the behaviour segment is very promising. The satisfaction of the customer needs based on their behaviour creates an appeal to the customers and thus loyalty by the customers. This results to having many customers and in turn high sales revenues. Therefore, the behavioural segment promises a higher chance of growth when compared to other segmentation methods (mizrahi).
With the many transport services in the market, Uber services choses to concentrate on offering affordable prices to their customers as well as quality services. The other companies concentrate on the other factors such as customer service level and variation of their services. Quality and affordability has put Uber as the top transport service provider.
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