Sources
Use these sources for objective data about your target market:
- Newspapers and periodicals: Financial Post, The Globe and Mail, Report on Business,
Consumer Reports
- Government catalogues: Statistics Canada and provincial and territorial statistics offices
- Directories: Telephone and city directories
- Websites: City websites and Chamber of Commerce websites
Consumer Behaviour
Consumers act according to a set of criteria. This means that consumers make purchase decisions that reflect
a variety of personal characteristics and values, including:
- cultural values.
- social factors like family, social roles, and social status.
- personal factors like age and life stage, occupation, economic circumstances, and lifestyle.
- psychological factors like motivation, perception, learning ability, and personal beliefs.
Service Quality Model
This diagram illustrates how word of mouth, personal needs, and past experiences combine to influence a consumer's
expectations of a service. It also demonstrates that management makes service decisions based on its perceptions
of consumer expectations.
Word of Mouth→Personal Needs←Past Experience
↓
Expected Service
↑↓
Perceived Service
↑
Service Delivery (pre- and post-contact)
↑
Service Quality Specifications
↑
Management Perception of Consumer Expectations
A business owner's goal is to provide a service that is better than the consumer's expectations. The main determinants
of service quality are access, communication, competency, and courtesy.
Interpretation of Market Data
To interpret your data, determine:
- target population characteristics like age, sex, family status, culture, income, and educational levels.
- whether there is a sufficient market population to support your business vision.
- how many competitors have a similar business model, and how many have a different business model.
- appropriate mathematical assessments. For example, the total population is 100,000, and the target population
is 50,000. There are 10 competitors. Therefore, the ratio of competitors to the target population is:
1:5,000.
Buying Process
Typical steps consumers follow when purchasing services:
- Needs recognition
- Research
- Evaluation of options and alternatives
- The decision to purchase
- Post-purchase behaviours