Chapter 2 Putting the Customer First

The value people believe they receive from a product or service

• Rational purchases

• Patronage purchases

• Emotional purchases

• Benefits derived

Segmentation based upon age, income, education, and other distinguishing characteristics

• Geographic segmentation

• Benefits derived

• Demographics

• Mass marketing

Consumers make purchases based on careful thought and sound reasoning

• Rational purchases

• Patronage purchases

• Emotional purchases

• Benefits derived

Purchases based on consumer loyalty to a particular brand or product

• Rational purchases

• Patronage purchases

• Emotional purchases

• Benefits derived

When consumers spend with little thought during emotional highs or lows

• Rational purchases

• Patronage purchases

• Emotional purchases

• Benefits derived

Segmentation divides markets into physical locations, such as regions of the U.S.

• Geographic segmentation

• Benefit derived

• Demographcs

• Mass marketing

An attempt to appeal to a large, general group of consumers

• Geographic segmentation

• Benefits derived

• Demographics

• Mass marketing

Minimum sales required to cover all of expenses of organizing, promoting, & running the event

• Breakeven point

• Economic market

• Comparative advantage

• Opportunity cost

All of the consumers who will purchase a product or service

• Breakeven point

• Economic market

• Comparative advantage

• Opportunity cost

Capability to produce products/services more efficiently and economically than the competition

• Breakeven point

• Economic market

• Comparative advantage

• Opportunity cost