Comparison between Rural and Urban Consumer Behaviour: An Empirical Study | Chapter 9 | Contemporary Research in Business, Management and Economics Vol. 2

 Consumers live up to the adage that "Consumer is King" in today's modern, technologically evolved society.

These days, all customers have good communication and connection with both the items and each other. A mature and awakened society may be identified by its knowledgeable and educated consumers. Consumer education imparts knowledge and skills that enable one to make better purchasing decisions. In order to be able to defend himself against any wrongdoing on the side of the merchant, a customer must be satisfied to be watchful and discriminating. They keep an eye out for different marketing gimmicks and deceptions connected to the products they are purchasing. Consumers look for knowledge on every aspect of a product, from its creation to its use, increasing their awareness and helping them make the best decision for their requirements. Therefore, it is crucial to investigate the source the consumer is using to gather this information. The purpose of the study is to identify the numerous factors that influence consumer awareness, as well as how they differ and overlap among the various market groups. The study utilized a stratified sampling method to select 1377 customers from the Telangana district of Hyderabad, providing a representative sample for analysis. Methodologies included Chi-square and Regression analysis techniques, enabling a comprehensive examination of the data. The study noted that the reading habit and the extent of discussion with various members of society are the main variables that assist a consumer in increasing his density of awareness. Specific variables such as reading habits and social engagement were found to significantly impact consumer awareness levels among both rural and urban participants. The variables were chosen to identify the relationship between the factors associated with awareness among rural and urban consumers and their level of awareness. Consumers must be well-informed in order to respond to new technologies and impending difficulties since reading and conversation play a key role.

The characteristics of urban and rural customers differ significantly. The region affects the choices and likes. There is always room for research into the different elements influencing how customers in urban and rural locations behave while making purchases. Among the key variables studied were reading habits and social engagement, which were found to significantly influence consumer awareness in both rural and urban areas. The findings can help businesses better serve their online customers. They may use it to divide the Internet purchasing market into segments depending on the motivations and preferences of consumers in rural and urban areas. They will get nearer to the buyers as a result. They will be able to examine clients from both urban and rural locations more attentively.

Author(s) Details:

S. Md. Shakir Ali,
Department of Digital Business, Lithan Academy (eduCLaas Pte Ltd.), Singapore.

Md. Wasim Akhtar,
Council for Social Development (CSD), Hyderabad, India.

Please see the link here: https://stm.bookpi.org/CRBME-V2/article/view/13695

A Critique of Porter's Cost Leadership and Differentiation Strategies: An Update | Chapter 14 | New Innovations in Economics, Business and Management Vol. 9

 This is an updated version of a previously published critique of Porter's cost leadership and differentiation techniques (Datta, 2010a).

The author presented an alternative competitive paradigm in this critique of Porter. To test his idea, he conducted investigations of twelve consumer marketplaces in the United States.

This revision integrates the findings of that empirical study and updates it.

Porter associates high market share with cost leadership, using General Motors (GM) as an example of a successful implementation. GM, on the other hand, became the market share leader in the American car industry thanks to a 1920s-era market segmentation, differentiation, and broad reach strategy.

Cost leadership and distinctiveness, according to Porter, are both feasible paths to competitive success. Despite this, a When contrasted to the competition, a differentiation strategy based on greater quality is more lucrative than a cost leadership plan. It may help a company become a market share leader and, as a result, a low-cost leader.

Differentiation and cost leadership may coexist, according to research. Porter, on the other hand, maintains that any generic approach needs a distinct culture and philosophy. Porter's generic tactics, on the other hand, are far too broad. His main concept, which prescribes cost leadership approach as the sole way to market share leadership and provides a restricted vision of differentiation with a unique product—sold at a premium price—on one side, and a "standard, or no-frills" product on the other, is faulty.

Porter's cost, according to Mintzburg, is The term "price differentiation" should be used to describe a leadership strategy that is based on a lower price than the competitors. Business strategy, according to him, has two dimensions: distinction and scope. Setting aside scope, competitive strategy consists of only one element: distinctiveness.

So, the question isn't whether to differentiate, but rather how to do so.

First, make customer-perceived quality the cornerstone of competitive strategy, since it is considerably more important than any other component in long-term success. Second, serve the middle class by competing in the mid-price market, providing superior quality at a somewhat higher price than the competitors. This is the approach that can lead to market share leadership, which is a successful and long-term strategy.


Author(S) Details

Y. Datta
College of Business, Northern Kentucky University, Highland Heights KY 41099, USA.

View Book:- https://stm.bookpi.org/NIEBM-V9/article/view/6969

The U. S. Men’s Shaving Gel Market: A Competitive Profile | Chapter 9 | Insights into Economics and Management Vol. 12

 Men's Shaving Gel, Beer, Shampoo, Shredded/Grated Cheese, Refrigerated Orange Juice, Men's Razor-Blades, Women's Razor-Blades, Toothpaste, Canned Soup, Coffee, Potato Chips, and Alkaline AA Battery are among the twelve studies that have attempted to analyse the competitive profile of US consumer markets.

Porter associates a large market share with a cost leadership strategy, which is based on competing on a lower price than the competitors. Customer perception of quality, rather than low cost, should be the foundation of competitive strategy, since it is considerably more important to long-term competitive position and profitability than any other element. As a result, a superior alternative is to provide greater quality in comparison to the competition.

In most consumer markets, a company seeking market share leadership should target the middle class by competing in the mid-price segment and providing quality that is superior to that of the competition: at a slightly higher price to convey a sense of quality and to ensure that the strategy is profitable and long-term sustainable.

Quality, on the other hand, is a tough term for most people to grasp. As a result, people frequently utilise relative price and a brand's reputation as indicators of quality.

In 2008, the overall sales of men's gel in the United States were $ 131 million. We discovered that the 7-oz Gel was the most popular size, with $116 million in sales in 2008. As a result, we've concentrated our investigation on this bundle.

We evaluated two hypotheses using Hierarchical Cluster Analysis: (1) that the market leader is likely to compete in the mid-price group, and (2) that its unit price is likely to be greater than the nearest competitor.

For 2008 and 2007, the results supported both Hypothesis I and II. The mid-price segment included both the market leader Edge and the runner-up Gillette Series. Furthermore, the unit price of Edge was higher than that of Gillette Series, as we have hypothesised.

We found that relative price was a strategic variable, as hypothesised.

We also discovered five strategic groups in the industry.

Author (S) Details

Y. Datta
College of Business, Northern KY University, Highland Heights, KY 41099, USA.

View Book :- https://stm.bookpi.org/IEAM-V12/article/view/2075

An Assessmental Study on Use and Impact of Market Segmentation Practices on Bank Performance: With Special Reference to Commercial Banks in Colombia | Chapter 6 | Current Strategies in Economics and Management Vol. 7

 This study examined the usage and effect of market segmentation trends and practises in the post-consolidation period of 2012 on the performance of selected banks in Colombia to date. Although the design was predominantly exploratory, the methods implemented were both primary and secondary, referring to basic market segmentation variables such as market share, geographical position and bank output pricing. The Herfindal Hirchman Index (HHI) statistical test was developed to test market concentration against the output of banks. Objective: The idea behind this study was to enable executives, business students, and banking employees to understand the definition and effect on bank results of marketing segmentation trends and practises. Results: Study findings show that segmentation activities have had a substantial effect on the performance of selected banks in Colombia. The study revealed that banks have used segmentation strategies to reduce their overall unit cost of service, grow their market shares, maintain their clients, strengthen their communications, increase profitability and concentrate on their industry. Thanks to their segmentation strategy called data-informed strategy, they are well-placed in capital strength and are the best capitalised banks in Colombia. Conclusion: However, the study concluded that there is a threshold point (37.2%) where any further contribution of funds to the practise of market segmentation will lead to a negative outcome. Recommendation: Less dominated banks were recommended to follow an acceptable corporate image, easy and flexible account opening formalities, just-in-time service delivery, management of employee customers, and efficient and effective use of referrals to achieve customer loyalty that helps to maintain old customers and also win new customers.

Author(s) Details

E. Asiedu
Servicio Nacional De Aprendizaje (SENA) Neiva, Huila, Colombia.


View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/300