Consumer behavior and segmentation

So, here are my book reflections. I was supposed to take just one book, but at first I couldn´t find any of the subject in our school library and finally I was going home with seven books, of course. My job was to find out and read about consumer behavior and segmentation. I also tried to link it in to local food and find out about costumer behavior in restaurants, hotels and supermarkets. Here are the reflections of what I have read about and thought that would have help in this project.

Pulkkinen, Sirpa. 2003. Mielipaikka markkinoilla. WSOY

I learnt about segmentation and consumer behavior. Segmentation is a marketing strategy where markets are divided in smaller sections to satisfy consumer´s needs. The segments are formed by consumer´s behavior, values, needs and wishes. Segmentation main criteria´s are geographical, demographical, psycho- graphical and behavioral factors. Today those factors are sometimes not that accurate anymore to define because there are no stable or precise roles – you may change the role depending on the situation and desire even several times in a day.

In segmentation it is hard to function “all for everyone” –concept, though markets are so little here in Finland and people´s needs are different. The best way is to discover “a new thing” like local food, before anyone else does and you will make a hit. Consumers can be also segment to create a rewarding system – regular customers and give those discounts, benefits and offers.

The conditions for segmentation are:

• stand out from each other, supply and demand for everyone!
• need to be consistent
• must have potential to reach out to consumers
• must be achievable
• must have value in the future

I believe that the consumers are on the way to become more demanding, aware of their needs and willing to experience tailored services and pay for quality. Consumers want better service and they want to know where the food is from. People are also more and more aware of climate change and they want to make a difference in their consumption. Companies should take advantage of this and respond to consumers demands. 

Ehrstedt, J. & Leppäkorpi, M. 2012. Laura Suvannon haastattelu. Syteen tai saveen? Luomuviljelijän arki EU-ajan Suomessa. Teoksessa Reilumman kaupan jäljillä, kirjoituksia reilusta kaupasta ja solidaarisesta vaihdosta. Helsinki. Into, 123-149.

I was interested in this book, because the interviewee was a local woman from Rymättylä producing local and organic food. In this interview the difference of organic and local food was pointed out and Suvanto was wondering about if “local hype” is just going to make a Finnish agriculture more effective and presentable, because the differences between organic food and produced local food are very often on display.

I´ve learned from this interview that the main point for organic food is to produce it without destroying the earth, and reduce greenhouse gas and it is good to be aware of the huge costs when the products are transferred here Finland from the other side of the world, same goes for the good side of the producing local food.

In addition of describing local food, important is not to forget about the support of local businesses. Long-term customer relationships and trust are the key words for the continuum of local food. New thing for me was that the big crucial factors control 80 % the retail sale in groceries and daily consumer goods in 2010. As an alternative for the destruction of our planet is to support eco-friendly livelihood as creating local food culture

-Assi