Consumer and Competition

Consumer and Competition

1. Types of Competition

   • Oligopoly
     • A market consists of little competition; a entrance barrier
   • Monopolu
     • Competition in which the market is only consisted of one person. It usually has a high entry barrier in price and provides an exclusive service
   • Competition
     • Fact that two or more businesses, typically of teh same type go against one another for market share and consumer aattention
     • Perfect competition arises when there is little barrier to enter and that their are many compeition
     • Competition is essential to provide many options for needs and wants
   • Price
   • Non Price

2. Buying motives

   • Social; makes decisions based on other opinions
   • Situational; based on the situation or environmental factors
   • Psychological; based on needs and wants of human

3. Buying Process

   • Awareness
   • Interest in item/information
   • Evaluate options; inept, inert and evoked
   • Deciding to purchase;
   • Purchase; usually very simple to influence quick purcahisng
   • Pose Purchase; typically stresses benefits

4. Market share

   • The size of your company (on sales or profis) in comparison to whole market expressed in percentage
   • Market Size; the total amount of sales or profit in a certain market segement

5. Decision-makkng

   • Impulse
     • Makes decision on a whim
   • Routine
     • Makes decision based on facing similar experiences before
   • Limited
     • Decision made on the basis that products will have large impact or are expensive; some reserach is done
   • Extensive
     • Reearch made in the context that purchase could be life-changing