|
|
How can someone choose between various kinds of products that can satisfy their needs? For example, someone needs three-mile journey to the place of work every day. He can using a number of products to satisfy this need, such as roller skates, bicycle, motorcycle, car, taxi, or bus.
Alternative option is a choice collection of products (product choice set). Someone may want to satisfy some additional needs during the journey to the workplace, namely speed, convenience, security and economy. Each product has a ability to satisfy a different set of needs in (set of needs) it. Bicycle is slower, less secure and requires more energy than cars, but bicycle is more economical. However someone must decide which products will provide the largest total satisfaction.
Concepts that can help solve this problem is the value and satisfaction. Value is the estimate of consumer the ability of all products to satisfy their needs. Suppose someone is interested in the speed and ease go to work. If all of the products offered in the up without charge, he will choose the car. However, because each product incur certain cost, he may not choose a car that costs much more expensive than a bicycle or taxi. If he choose a car, he must forfeit something to get the car in the form of financial transaction. Therefore he will consider the value and price of the product before making a decision. He will choose the products that generate more value per dollar. According to DeRose, value is the “fulfillment of customers requirement in the lowest cost of acquisition”
Reference:
Kotler, P., And, S. H., Leong, S. M., & Tan, C.T. Marketing Management : An Asian Perspective. Prentice Hall. 1996.
Place your Ads Here