Figuring Out Buyer Behavior, No. 2
My Market Segment: Businesses that have to find an alternative to single-use bags because they are being forced to by local legislation.
Interview #1: Owner of a Mexican Restaurant
Alternative Evaluation- When I spoke to this restaurant owner, he pointed out that most of their decisions are made based on how it will effect their margins and revenue. He said that they would like to use more sustainable products but are worried that this increase in cost will force them to increase their prices and eliminate some of their customers. He said that they always consider their customer's satisfaction when purchasing ingredients, packaging, and other items, but the most important factor is the cost of the product. Quality is more important when assessing ingredients, but cost is definitely the most important factor for packaging, silverware, and other disposable products.
The Purchase- He said that they often will purchase their goods in bulk orders either online or at warehouse-style supply stores. They usually make large purchases after they have a very successful week or month so that they do not have to do any extra financing. The owner said that his wife often makes these large orders because she is usually the person who is most aware of current stocks and the businesses revenue at the time.
Post-Purchase Evaluation- In regards to packaging, the owner said that they often think highly of the purchase if they do not receive any complaints about the product and the order shows up timely and with the correct amount of supplies. He said that they once bulk-ordered to-go containers online and many customers complained that the packages were leaking or cracking at the bottom. He said that they never re-ordered from this company and now spend more time looking at reviews of the company and the product before ordering.
Interview #2: Sushi Restaurant Manager
Alternative Evaluation- This restaurant manager admitted that the individual locations of this business do not get a lot of say in what products they order but rather, can usually only make suggestions to the regional managers. He believes that the regional executives probably value price and style the most. He said that they want to maintain similarity between all of the restaurants and so they rarely change style but must also keep costs low to support operation.
The Purchase- The local managers are unable to make purchases without approval from the regional executives and are rarely able to make purchases themselves. He says that they usually have to report shortages to a superior and then the products that they need are ordered through a distributor that handles most of the purchases for the company.
Post-Purchase Evaluation- He said that he is always happy when the regional managers take their suggestions on what products to order because they often have more time to research the products and get opinions from their customers. In regards to the products that they do not choose, he said they are always happy when the products are of good quality and do not seem to simply be the cheapest product available.
Interview #3: Bakery Owner
Alternative Evaluation- This owner said that she tends to pick out all of the products that they use in their business and that she often does a lot of internet searching before settling on one product. She says that she values quality over all other factors but definitely tries to keep her costs low too. She says that she operates a high-margin business and relies on a higher middle class clientele to fund her business and they often expect higher quality products, including their packaging.
The Purchase- She said that she makes most of her purchases online through distributors that specialize in products for restaurants. She says that if they start running critically low on a product but have not had time to order, she will sometimes go to large grocery stores or warehouse-style stores but usually tries to order products online because they tend to be cheaper and more customizable.
Post-Purchase Evaluation- She says that she is usually pretty happy with the products that she orders but thinks that this is likely because she does lots of research before ordering any products. She said that if the product arrives in a reasonable amount of time and resembles what she saw online, she is usually happy with the purchase, but is more likely to re-order if she receives positive feedback from her customers about the product.
Conclusions:
I think that all of the people that I interviewed identified the importance of keeping costs low and margins high. The bakery owner was the only one that said that she thought quality was more important than cost and I think that this is only because she is catering to a higher-class customer base that is willing to pay more for high-quality products. All of the people that I interviewed were restaurant owners or managers so they mostly ordered from distributors that specialized in restaurants but they all also said that most of their research and purchases were made online. They all said that they are usually happy with their products, especially if they arrive in a timely manner and in the same quality that they expected. I think that these results have taught me that I will have to do a lot of online marketing and try to convince my customers that my product will actually help them lower costs or provide a product that their customers are willing to pay more for.
Interview #1: Owner of a Mexican Restaurant
Alternative Evaluation- When I spoke to this restaurant owner, he pointed out that most of their decisions are made based on how it will effect their margins and revenue. He said that they would like to use more sustainable products but are worried that this increase in cost will force them to increase their prices and eliminate some of their customers. He said that they always consider their customer's satisfaction when purchasing ingredients, packaging, and other items, but the most important factor is the cost of the product. Quality is more important when assessing ingredients, but cost is definitely the most important factor for packaging, silverware, and other disposable products.
The Purchase- He said that they often will purchase their goods in bulk orders either online or at warehouse-style supply stores. They usually make large purchases after they have a very successful week or month so that they do not have to do any extra financing. The owner said that his wife often makes these large orders because she is usually the person who is most aware of current stocks and the businesses revenue at the time.
Post-Purchase Evaluation- In regards to packaging, the owner said that they often think highly of the purchase if they do not receive any complaints about the product and the order shows up timely and with the correct amount of supplies. He said that they once bulk-ordered to-go containers online and many customers complained that the packages were leaking or cracking at the bottom. He said that they never re-ordered from this company and now spend more time looking at reviews of the company and the product before ordering.
Interview #2: Sushi Restaurant Manager
Alternative Evaluation- This restaurant manager admitted that the individual locations of this business do not get a lot of say in what products they order but rather, can usually only make suggestions to the regional managers. He believes that the regional executives probably value price and style the most. He said that they want to maintain similarity between all of the restaurants and so they rarely change style but must also keep costs low to support operation.
The Purchase- The local managers are unable to make purchases without approval from the regional executives and are rarely able to make purchases themselves. He says that they usually have to report shortages to a superior and then the products that they need are ordered through a distributor that handles most of the purchases for the company.
Post-Purchase Evaluation- He said that he is always happy when the regional managers take their suggestions on what products to order because they often have more time to research the products and get opinions from their customers. In regards to the products that they do not choose, he said they are always happy when the products are of good quality and do not seem to simply be the cheapest product available.
Interview #3: Bakery Owner
Alternative Evaluation- This owner said that she tends to pick out all of the products that they use in their business and that she often does a lot of internet searching before settling on one product. She says that she values quality over all other factors but definitely tries to keep her costs low too. She says that she operates a high-margin business and relies on a higher middle class clientele to fund her business and they often expect higher quality products, including their packaging.
The Purchase- She said that she makes most of her purchases online through distributors that specialize in products for restaurants. She says that if they start running critically low on a product but have not had time to order, she will sometimes go to large grocery stores or warehouse-style stores but usually tries to order products online because they tend to be cheaper and more customizable.
Post-Purchase Evaluation- She says that she is usually pretty happy with the products that she orders but thinks that this is likely because she does lots of research before ordering any products. She said that if the product arrives in a reasonable amount of time and resembles what she saw online, she is usually happy with the purchase, but is more likely to re-order if she receives positive feedback from her customers about the product.
Conclusions:
I think that all of the people that I interviewed identified the importance of keeping costs low and margins high. The bakery owner was the only one that said that she thought quality was more important than cost and I think that this is only because she is catering to a higher-class customer base that is willing to pay more for high-quality products. All of the people that I interviewed were restaurant owners or managers so they mostly ordered from distributors that specialized in restaurants but they all also said that most of their research and purchases were made online. They all said that they are usually happy with their products, especially if they arrive in a timely manner and in the same quality that they expected. I think that these results have taught me that I will have to do a lot of online marketing and try to convince my customers that my product will actually help them lower costs or provide a product that their customers are willing to pay more for.
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