15A – Figuring Out Buyer Behavior No. 2

1) Interview three people:
Mr. Miller
Mrs. Bowman
Kyle O.

3) Begin with alternative evaluation. In the last case exercise, you determined how customers sought information related to solving their need. The outcome of this step is to produce a set of alternatives. Customers pick from among this set of alternatives. In this step, your job is to figure out how they do their picking. Does price matter the most? Does quality? Does style? Is there more than one factor that is important to your customer segment?

Price and quality are really where it's at for my potential customers. The feed itself isn't that complicated and competition isn't as intense given how rural the area is. I'll be the closest producer by far.  I may save them up to $20 in gas each week if they drive to another town. One of the local gas stations also sells feed but I can likely supply him feed as well and he also charges more than say Tractor Supply in town due to his customers' elasticity of demand, lack of alternatives, and transportation costs.

4) How/where do they buy? Elements of the actual transaction can help characterize your segment. Is your segment more likely to buy online or in a store? Are they more likely to use cash or will they finance the purchase? Etc. If this is a B2B purchase, who's involved in the purchase decision? 

Most of them use cash for most transactions and they will buy the product directly through me or a local store.  They live week to week and often use their animals to provide some portion of their weekly nutritional intake, even if it's small.  There is potential for B2B but most of my business will be to individuals and families who raise chickens and or fish. Most business will be done in cash. Typically the mother, father, or both will be involved in the decision.  It really boils down to each individual family and how they do things.  It appears the price won't be negotiated often; it just has to be under the agreed budget.

5) Post-purchase evaluation. What matters most to your customers when they think back on the 'rightness' of the purchase? What helps them determine the purchase was a good idea? What sorts of things make them think a purchase was a bad idea? 

At the end of the day, they appear to be satisfied with quality service, a fair price, and value for their operation.  I believe I can satisfy all of these desires by offering delivery and accepting cash and Venmo.  A consistent supply delivered to their door will provide quite a bit of value to them.

6) Report the findings. Simply summarize your interviews. 

Mr. Miller: Mr. Miller owns and operates a gas station and feed store, through which he sells both chicken and fish feed.  The bulk of his customers have a dozen chickens or so and mainly use them to produce eggs.  Therefore, price and protein content are the two biggest factors for his clients. That is great news for me because his store is fairly close to our ranch and he would handle the marketing and sales while I will provide him with cheap and nutritious feed. In the end, Mr. Miller is looking for repeat customers so producing consistent quality, uniform products are what he needs.  He will obviously be critically evaluating this as he sells my product because his reputation and livelihood are at stake.

Kyle O: Kyle and his family have a dozen hens.  He is very interested in a more natural feed blend that's affordable but still exceeds the protein threshold for hens to lay eggs at 12% protein. As long as the chickens keep laying and he doesn't believe he is overpaying, he will continue to be satisfied until a similar product for a cheaper price emerges.

Mrs. Bowman: Mrs. Bowman's daughter raises chickens to show in the local county fairs.  Therefore, they are looking for a complete food source: ample vitamins, minerals, protein, and carbs. Since I create the nutrient makeup myself, I can make a blend specifically for their need and hopefully capture an additional market segment. They both will evaluate the feed on a weekly basis, emphasizing good color, feather composition, and muscular development. This will be the most difficult market segment to satisfy but perhaps the most enjoyable to serve.

7) Draw conclusions. Based on what you know about this segment and what you learned in your interviews, how would you succinctly describe this segment in terms of alternative evaluation, purchase decision, and post-purchase evaluation? 

I learned that different segments can have crucial, yet widely varying needs, all of which I will have to meet and potentially exceed to maintain their business.  Delivery is a major value I provide because my competitors really cannot afford to match this offer.  I'm producing as locally as possible, asking a fair price, and delivering it to my neighbors, essentially.

Thank you for your time; I hope you enjoyed it!