Tuesday, September 24, 2019

Customer behavior and its importance


What is customer behavior? Well it’s the study of how people make decisions about what they buy, want, need, or act in regards to a product, service, or company. Still confused don’t worry I have two articles showing how customer behavior is being used in the food industry. 


Now that you have the rough definition, for customer behavior let me explain how it’s being used and manipulated in the food industry. If you have ever gone to a grocery store, then your data on what products you bought have been recorded. Why this is so valuable? Well, let’s see, a giant collection of data that tells them how people spend their money. Yeah I would say this is pretty important because there job is to direct you to a specific product or service and if they have a giant collection of how you react to marketing, they can then draw correlation to what people in your age group, culture and many other macro-environmental elements you belong too. They, in turn, use this data to try and understand how they can manipulate your values and guide your purchase to their product or service.

Now in the articles that I’ve linked below, they show the data collection that, I lightly talked about previously and how they are using to conclude how they can implement this data in the store. For example, the most bought items in a grocery store are milk and bread. The longer a customer stays in a store the more they buy. So how do they use these two data sets in reality. well have you ever wonder why the milk and bread are usually on opposite sides of the store. The desired effect is that you go to the store need only milk and bread you grab your milk and begin to walk through the store, but you start to see that there is a deal on some chicken you. You weren’t wanting chicken but how can you resist this deal and you need to eat so you grab the chicken and maybe some other items on the way to your bread. So let’s see what happened to you, you did not want chicken but you bought it because of the deal and if the milk and bread were not on other sides of the store you would have never been exposed to this deal, that is the power of customer behavior. So now I hope that this example explains how important this data is because it;s a very big factor. The example above is a situational factor called shopping situation, where you are ready to buy something but marketers use adding value to the product. 
Now the most important step in the buying process to marketers and customers alike, in my opinion, is the postpurchase step. Now you're asking yourself why is it so important, well this is the only step in which the consumer, is a guaranteed customer in the second article they talk about something called cognitive dissonance, which is when you buy a product and then feel that you made a bad purchase, this is also called buyers remorse. 
This is a very important opportunity for the marketer to satisfy their customers and make them a return customer so how do they do this well they usually send thank you letters or other ways of positive reinforcement. Now this ties into the second article, I linked they explain why at most grocery stores they have the candy at the front, well it's to combat the buyer's remorse. In the article, they show data that most people that buy a candy bar or some type of candy are shown to not have as much buyers remorse or act on it less.

In conclusion, the way that the food industry is using customer behavior is the foundation of almost every single decision made even down to the store layout because it gets results. Ironically everybody is being manipulated by this data us and the marketers that is just how valuable customer behavior is.



 Article 1 

Nejad, F. M., Samadi, S., Ashraf, Y. A. P., & Tolabi, Z. (2015). Affecting Factors of Consumers’ Intent to Buy in the Food Industry by Emphasizing Brand Experience (Case Study: Mashhad TABAROK Company). Iranian Journal of Management Studies, 8(2), 243–263. Retrieved from https://search-ebscohost-com.owu.idm.oclc.org/login.aspx?direct=true&db=bth&AN=11628997 5&site=ehost-live Article 2 Nowicki, P., & Sikora,, T. (2012, September).

Article 2

CONSUMER BEHAVIOUR AT THE FOOD MARKET. Retrieved from https://www.researchgate.net/publication/258889655_CONSUMER_BEHAVIOUR_AT_THE_F OOD_M

Saturday, August 31, 2019

Domino's Pizza The King of Rebranding

Today I would like to talk about Domino's and why they are one of my favorite companies and it's not because of their pizza. They are a great example of how self-reflection and innovation can turn everything around for a company. The company was not doing too well 10 years ago, in fact, their stocks hit an all-time low. How they fixed all of this was by doing an unorthodox method of admitting that their product was terrible, they own up to their mistakes and ask people for feedback. This is what started their 'Oh Yes We Did" campaign, which is the reason they are one of the largest pizza companies now. This campaign is also what started their large social media success and influence because they asked the customer for feedback on social media. They mainly did this with what they called “The Think Oven”. People were encouraged to post their feedback and ideas on Domino’s  Facebook page. Some ideas were used, the customer would also receive a reward for it. This simple thing, asking the consumer for help made them feel part of the company. 

So let's fast forward to the present and ask do they still hit the mark of the 4e's (Excite, Educate, Experience and Engage).

Excite

I feel that they do a good job of exciting their customers with new deals and offers. For example, right now if you order online you can get half off all menus-priced pizzas until tomorrow. A really cool thing called points for pies where you get reward points for taking a photo of any pizza from anywhere and uploading it on their app and you earn reward points toward a free Domino's pizza. Now this brings us onto our next question, do they do a good job of informing us

Educate

They inform their customers by email if you sign up, Commercial, and social media. I follow them on twitter and got the deal from above from there, also I can say from experience that they bombarded you with deals on your email trust me.

Experience

Domino’s helps customers experience its product by having a pretty self-explanatory website and app. They upload YouTube videos on how to use their reward points and other features. I think that letting you get points from other people's pizza is a unique way to earn points, this helps you try their product for free if you get enough points making it a win either way.

Engage 

They do a great job of engaging with their customers on Twitter, Instagram and Facebook, for example on Twitter a customer tweet at Domino’s and Domino’s response.

“Placed an order with @dominos, they call 10 minutes later saying they aren’t taking online order anymore, at 9pm on a Friday......”

“So sorry to leave you without your order Nick. Can you please DM us with your email, phone #, and store into? I want to help get this addressed. *AG”

I think that the way Domino’s responded quickly and with concern shows how committed they are to their product and customers because they could have easily ignored him but they chose not to. In my opinion, they do a fantastic job of engaging with the customer and their love customer feedback.

The company could work on exposing their YouTube channel more considering not having many subscribers as you would think. Domino’s does something really interesting on Instagram they take actual pictures of their pizza to show the imperfection of their product this really helps, with what I believe is their main goal transparency to the customer. In conclusion, I think the way that Domino’s reinvented itself and 10 years after that rebound not letting any of their values or commitment to its customer decrease, shows integrity. This example of Domino’s in my opinion, truly shows the power of marketing and self reflect and this is why I personally like them as a company. Due to them using social media to improve their image from an underdog to a top dog in their industry.


artxvandelay. (2019, August 19). "placed an order with@dominos,they call 10 minutes later 

saying they aren't taking online orders anymore,at 9pm on a friday…...”[Tweet].

https://twitter.com/dominos/status/1167842969052991489 



Domino's Pizza. (2019, August 19). "So sorry to leave you without your order Nick. Can you

please DM us with your email, phone #, and store into? I want to help get this addressed. *AGTweet]

.https://twitter.com/dominos/status/1167842969052991489 



Wilson, M. (2018, July 10). Domino's Instagram Is Gross. That's By Design.
Retrieved from
https://www.fastcompany.com/90138198/dominos-could-win-the-pizza-wars-by-being-grosser-than-everyone-else


Omi. (2018, May 22). How Digital Marketing Crowned Domino's the King of Pizza.
Retrieved from
https://medium.com/online-marketing-institute/how-digital-marketing-crowned-dominos-the-king-of-pizza-3d327d7350f8