15A- Figuring Out Buyer Behavior No. 2
For this assignment, I interviewed three college students who have worked at major retailers that could purchase my product.
To summarize, all three people provided me information on what they think about the product and how businesses would go about their purchase decision. When I explained to them my idea to develop a cheaper self-scanner that will help shorten the duration of time spent in line at the store, they thought it was a good idea for the consumer. But before we consider the consumer at the store, we have to consider the consumer we are selling it to. Since my product isn't being sold to the consumer at the store, but to the store itself, this is a business to business transaction. From the interviews, I found that in a B2B purchase most people think the price is the determining factor. Most businesses are looking for ways to maximize revenue so that they can keep reinvesting in the company while maintaining high-profit levels for their shareholders. This is why a business might care more about the price of a product because if they can keep the same high-profit margins with a cheaper product, they will most likely go with the cheaper product. Also, since this is a B2B purchase there is a high chance this will be done online. The people involved in the purchase will be the upper-management team for my company and for the stores. Ultimately, there will be a decision-maker and a gatekeeper involved in the purchase decision. For these stores to feel like they have made a good purchase they will need to see positive reviews from customers of the store. They will also need to keep track of how many people come into the store and if the number has increased since buying our product. If both of these things happen, our customer (stores) will feel like they have made the right decision. On the other hand, if the store fails to get positive reviews or if they are losing customers they will feel like they made the wrong decision.
In conclusion, businesses buying a product for their company look at how the decision will affect them financially and how their customers will react. That's why it's important to keep my product at a cheap price because if stores feel like the expense outweighs the benefit than they will not buy the product. When dealing with people in their upper-management, it's essential to sell them on the fact that a problem exists and that my product could potentially be a solution to the problem. After conducting these interviews, I learned more about dealing with business-to-business purchases and what these stores care about when making a purchase decision for a new product.
To summarize, all three people provided me information on what they think about the product and how businesses would go about their purchase decision. When I explained to them my idea to develop a cheaper self-scanner that will help shorten the duration of time spent in line at the store, they thought it was a good idea for the consumer. But before we consider the consumer at the store, we have to consider the consumer we are selling it to. Since my product isn't being sold to the consumer at the store, but to the store itself, this is a business to business transaction. From the interviews, I found that in a B2B purchase most people think the price is the determining factor. Most businesses are looking for ways to maximize revenue so that they can keep reinvesting in the company while maintaining high-profit levels for their shareholders. This is why a business might care more about the price of a product because if they can keep the same high-profit margins with a cheaper product, they will most likely go with the cheaper product. Also, since this is a B2B purchase there is a high chance this will be done online. The people involved in the purchase will be the upper-management team for my company and for the stores. Ultimately, there will be a decision-maker and a gatekeeper involved in the purchase decision. For these stores to feel like they have made a good purchase they will need to see positive reviews from customers of the store. They will also need to keep track of how many people come into the store and if the number has increased since buying our product. If both of these things happen, our customer (stores) will feel like they have made the right decision. On the other hand, if the store fails to get positive reviews or if they are losing customers they will feel like they made the wrong decision.
In conclusion, businesses buying a product for their company look at how the decision will affect them financially and how their customers will react. That's why it's important to keep my product at a cheap price because if stores feel like the expense outweighs the benefit than they will not buy the product. When dealing with people in their upper-management, it's essential to sell them on the fact that a problem exists and that my product could potentially be a solution to the problem. After conducting these interviews, I learned more about dealing with business-to-business purchases and what these stores care about when making a purchase decision for a new product.
Hi Felipe,
ReplyDeleteI really enjoyed your post and I can tell that you have a good grasp on business and how many different business goes about gaining profit. If many businesses were o believe in your idea then they are trusting that they will gain back the money they put forth in your product based on the amount of demand that you have for that product. I also like how you addressed how price is always a determining factor when it comes to a product because consumers are always going to determine if a product is worth the buy or not. Great post!
Hi Felipe, I enjoyed reading your post, and I believe it shows you really understand where you are going with your product. You have improved from some of your previous posts and made it clear that you are selling to stores and not the customers in the stores which is essential for moving forward. I agree that minimizing cost would lead to your product being popular, but you also need to make sure it is effectively advertised, great job.
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