By Steven S. Posavac
Full of stable, actionable details and suggestion, this designated guide makes a speciality of how wisdom of the rules of buyer psychology can be utilized to enhance managerial choice making and organizational functionality.
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Extra resources for Cracking the Code: Leveraging Consumer Psychology to Drive Profitability
For example, it is not very useful to improve must-have requirements if they are already at a satisfactory level. It is more efficient to allocate R&D resources to improve performance and attractive (exciting) features, as they are more likely to impact customer satisfaction. , both requirements cannot be fulfilled together). In such cases, clearly the must-have requirements should be fulfilled. The second advantage of such a classification is that it allows companies to differentiate their products by discovering new attractive and exciting features and incorporating them.
In fact, we would like to assert that, with respect to RNPs, the decisions managers face about marketing strategies play an important role in the success (or failure) of an RNP. With incrementally new products, many of the implementation decisions are not really decisions at all. For example, when introducing a new laptop into the market, managers’ main decision is the choice of outlets to use for distribution (from web-based sources to company-owned stores and other traditional retailers). Yet, there are fewer decisions to make regarding how to position the product, which particular features and benefits to highlight when promoting the product, or how to price it (since the range is pretty much predetermined by the market).
Summary In principle, consumer psychology has a lot to contribute to business. 3â•… The Process of Relevance Industry circles Usage 18â•… â•‡ Academic circles Internal validity Bridging Theory and Practiceâ•…â•‡ 19 and consumer behavior research is organized and conducted. Given current expectations and views in the field, our research aims, at best, to be generally applicable to business; yet, it seems to have only very limited impact on business practice. This can change if conducting business-relevant research is not seen as contaminating the pure nature of academic research but viewed as a mandate for any consumer psychologist residing in a business school.