Strategies of Product Differentiation: Effects on Consumer Behaviour

Some businesses think that the market is an arena of gladiators trying to fight for survival and buying the number of consumer’s decision. While, consumer behaviour helps organizations decide what products and services to manufacture or offer. When they know what customers buy and how they go about buying those products, organizations can more easily spot a need that has not yet been satisfied.

Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions. Understand the needs and wants of the consumers will help marketers to create a product that are suitable to the their income status. Also, to know how much they will produce  to lessen the waste o raw materials.

Why businesses should differentiate their products from its competitors? Because if they di so, they might gain the loyalty of the consumer and achieve their success. Moreover, product differentiation becomes the most dominant variable which partially affects consumer purchase decision or consumer behaviour.

Business firms worldwide have attempted to imitate products of their competitors or make slight changes to their products to convince or confound their customers. This may bear fruits in a short run but the long term effects may not realize the intended objective. Product differentiation in business is not given by nature, but a firm’s choice for the purpose of enhancing its business performance. Mostly, their market shares decline or fail to grow because of challenges in product differentiation and lack of strategies to enhance product differentiation.

Overall, it can be established that strategies of product differentiation had a great impact or effect on consumer behaviour. The product differentiation serves as a catalyst in a consumer's purchase decision-making process. In the statement of the problem, business firms worldwide have attempted to imitate products of their competitors or make slight changes to their products to convince or confound their customers. As they compete to each other, they might come up or produce a variety of products with high and pre-eminent quality, design, cost and etc. that the consumers will be benefited. Based on the strategies of product differentiation such as; features, performance, conformance, durability, reliability, reparability, style, and design. Through these, consumers might minimize their cost, time, and will lessen their stress in choosing a product. Since, there is variation of product in the market; customers will also have a wide variety of goods to choose from. Also, firms develop unique products to respond to customers' preferences, as opposed to one homogenous good. They compete to create unique products or services that satisfy customer demands through differentiation. Wherein, it will satisfy their needs and wants because they might get their preferred choice of product.

That's all! I hope you enjoy reading and learned something to this!

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# 54
: Thursday
: October 6, 2022
: Re-joyce