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SERVICE OUTPUTS AND SEGMENTATION. Service outputs Trends Segmentation. SERVICE OUTPUTS: DISTRIBUTION FROM THE CUSTOMER’S POINT OF VIEW. Bulk breaking Spatial convenience Waiting and delivery time Breadth of assortment. Trends in Consumer Preferences. Poverty of time (in U.S.)

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service outputs and segmentation
SERVICE OUTPUTS AND SEGMENTATION
  • Service outputs
  • Trends
  • Segmentation
service outputs distribution from the customer s point of view
SERVICE OUTPUTS: DISTRIBUTION FROM THE CUSTOMER’S POINT OF VIEW
  • Bulk breaking
  • Spatial convenience
  • Waiting and delivery time
  • Breadth of assortment
trends in consumer preferences
Trends in Consumer Preferences
  • Poverty of time (in U.S.)
  • Increased knowledge
    • Travel
    • Information sources
  • Polarity of incomes
    • Some increase in top incomes in U.S.
    • Incomes slowly equalizing Worldwide
segmentation
Aggregating consumers into larger groups that respond similarly to marketing treatments

Cannot be “all things to all people”

Imperfect but practical means to target customers

Same consumer may be in different segments at different times

Requirements for effective segments:

Maximally similar within

Maximally different between groups

Differ on significant dimensions--e.g., price response, service requirements, frequency of shopping

Tradeoff between size and precision

Segmentation
example food customers
Resellers--restaurants buy from suppliers

Institutional--hospitals buy to feed patients

Families

“Nuclear”--may buy from regular food stores; will favor large sizes

Small families, singles, and yuppies--will shop more in convenience store; single serving sizes more popular

Value conscious--buy at warehouses

Time conscious--will pay extra for delivery

Service conscious--other services demanded

Example: Food Customers