Figuring Out Buyer Behavior No. 2
Parts 1-6
Last week, in part one of this assignment, I focused on three people who fit my segment (franchise owners). I specifically focused on need awareness and information search when conducting my interviews. This week, I conducted three more interviews. One was with my friend's mom who was a franchise owner. The other two were local franchise owners in my city's "town center" plaza. I mostly asked the same questions as last week, but this time I specifically inquired as to their "alternative evaluation" process, how/when/where they buy and what their post-purchase evaluation system is like. These questions included:
"What does your typical purchase look like?"
"What medium is typically used for when you place orders?"
"What is your most common payment method?"
"Who is involved in decisions when items are purchased?"
"Through what criteria do you evaluate any past or potential purchases?"
"What would you define as a successful purchase?"
"What would you define as an unsuccessful purchase?"
My findings specifically on their unmet needs, purchase process, and post-purchase evaluation are as follows:
Last week, in part one of this assignment, I focused on three people who fit my segment (franchise owners). I specifically focused on need awareness and information search when conducting my interviews. This week, I conducted three more interviews. One was with my friend's mom who was a franchise owner. The other two were local franchise owners in my city's "town center" plaza. I mostly asked the same questions as last week, but this time I specifically inquired as to their "alternative evaluation" process, how/when/where they buy and what their post-purchase evaluation system is like. These questions included:
"What does your typical purchase look like?"
"What medium is typically used for when you place orders?"
"What is your most common payment method?"
"Who is involved in decisions when items are purchased?"
"Through what criteria do you evaluate any past or potential purchases?"
"What would you define as a successful purchase?"
"What would you define as an unsuccessful purchase?"
My findings specifically on their unmet needs, purchase process, and post-purchase evaluation are as follows:
- Similar to last week's findings, these franchise owners also became aware of their need when the impacts of COVID-19 began to hammer their bottom line. One franchise owner who works at the store every day explains that things changed "within three days" for the worst.
- All three stated their purchases were mostly done in person due to the nature of their business. All three were at least somewhat dependent on local suppliers. Two had weekly food purchases made at their local "Restaurant Depot". Although many of these purchases were initiated in person, they were often renewed monthly over the phone or online.
- In contrast, most non-food items were ordered online. This included various items such as shelving, plastic bags, pans, cleaning materials, replacement chairs and tables, etc. One franchise owner specifically stated they actually bought (and consistently buy) most of their stuff from Amazon!
- Post-purchase evaluations were very simple for all three, but dependent upon what was purchased. For food items, the "post purchase evaluation" was not only the quality of the food, but was mostly dependent upon "food cost", a margin they tracked weekly to cut costs and make profit.
- For non-food items that could not be measured or tracked specifically each week, the post-purchase evaluation was on a "feel" basis; if the franchise owners "felt" that the purchase made a contribution, no matter how small, to their bottom line, they were satisfied.
- In terms of alternate evaluation, two of the three instantly stated price as being their first and biggest factor. This was understandable as most restaurants really do work at the smallest of margins. The last franchise owner listed brand, quality, and trustworthiness (such as having good reviews) as being more important than just price.
Part 7
The segment I chose, franchise owners, seem to have fairly consistent views. In terms of alternative evaluation, price is always a factor, although it does vary in importance from owner-to-owner. In terms of purchase decisions, most purchases were made in person, although most non-food items were ordered online. In terms of post-purchase evaluation, the main factor was always the bottom line; because the business revolves around food, keeping food cost to a minimum while maintaining quality was of the upmost importance to all franchise owners.
It is awesome that you picked franchise owners, because my father is one. I do agree that price is usually the biggest factor, but then I would say so is the business structure. It is usually the percentage of success that drives most franchisees to buy into a franchise. Often times people really look at the potential ROI in order to see what they will be making in return. The business structure applies to this because it determines the revenue and cash flow. The cash flow determines the ROI.
ReplyDeleteHey Jean,
ReplyDeleteI believe you have done a strong job finding people who fit your segment perfectly and by asking powerful and productive questions. Going with that I found your findings to be incredibly interesting, I enjoyed reading about the impact of COVID on local franchise owners and how they have set up their business. I also agree that price is a major factor in most businesses.