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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. 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

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  1. SERVICE OUTPUTS AND SEGMENTATION • Service outputs • Trends • Segmentation

  2. SERVICE OUTPUTS: DISTRIBUTION FROM THE CUSTOMER’S POINT OF VIEW • Bulk breaking • Spatial convenience • Waiting and delivery time • Breadth of assortment

  3. 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

  4. 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

  5. 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

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