1. BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 1 SERVICE OUTPUTS AND SEGMENTATION zService outputs zTrends zSegmentation

2. BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 2 SERVICE OUTPUTS: DISTRIBUTION FROM THE CUSTOMERS POINT OF VIEW zBulk breaking zSpatial convenience zWaiting and delivery time zBreadth of assortment

3. BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 3 Trends in Consumer Preferences zPoverty of time (in U.S.) zIncreased knowledge yTravel yInformation sources zPolarity of incomes ySome increase in top incomes in U.S. yIncomes slowly equalizing Worldwide

4. BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 4 Segmentation zAggregating consumers into larger groups that respond similarly to marketing treatments zCannot be all things to all people zImperfect but practical means to target customers zSame consumer may be in different segments at different times zRequirements for effective segments: yMaximally similar within yMaximally different between groups yDiffer on significant dimensions--e.g., price response, service requirements, frequency of shopping zTradeoff between size and precision

5. BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 5 Example: Food Customers zResellers--restaurants buy from suppliers zInstitutional-- hospitals buy to feed patients zFamilies yNuclear--may buy from regular food stores; will favor large sizes ySmall families, singles, and yuppies--will shop more in convenience store; single serving sizes more popular yValue conscious--buy at warehouses yTime conscious--will pay extra for delivery yService conscious-- other services demanded