Customer Power

Customer Power

Introduction:

Consumer power is the influence that consumers can collectively exert upon industry, nationally and internationally. Whenever we make a purchase of either goods or services, we are contributing to the profitability of the company with whom we are dealing and also all their trading partners.

There are 4 factors that I would like to discuss, which influences customer power.

* Cultural Factors

* Psychological Factors.

* Personal Factors

* Social Factors

Cultural Factors:

Culture is crucial when it comes to understanding the needs and practices of an individual.

Throughout his existence, an individual will be influenced by his family, his friends, his cultural environment or society that will “Educate” him values, preferences as well as common practices of their own culture.

Sub-cultures :

A society is composed of several sub-cultures in which people can identify. Subcultures are groups of people who share the same values ​​based on a common experience or a similar lifestyle in general.

Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the individual, etc.

Current example of marketing change based on “Cultural Factors” -

ingredients used by McDonald’s in arabic and muslim countries are certified halal. So that they can cater to majority of people , who belongs to a certain Cultural Society.

Psychological Factors:

Psychological factors can be divided into 2 categories: Motivation & Perception.

Motivation:

Motivation is what will drive consumers to develop a purchasing behavior. It is the expression of a need is which became pressing enough to lead the consumer to want to satisfy it. It is usually working at a subconscious level and is often difficult to measure.

Motivation is directly related to the need and is expressed in the same type of classification as defined in the stages of the consumer buying decision process.

Perception:

Perception is the process...