Which products do consumers buy after comparing quality, price, and style from a variety of sellers?

good quality at a fair price (benefits minus cost to see if the benefits exceed the costs)

distributed product development

handing off various parts of your innovation process - often to companies in other countries

everything that consumers evaluate when deciding whether to buy something; also called a value package

a group of products that are physically similar or are intended for a similar market

the combination of product lines offered by a manufacturer

the creation of real or perceived product differences

convenience goods and services

products that the consumer wants to purchase frequently and with a minimum of effort

shopping goods and services

those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers

specialty goods and services

consumer products with unique characteristics and brand identity. because these products perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them

unsought goods and services

products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem

products used in the production of other products. sometimes called business to business (B2B) goods

grouping two or more products together and pricing them as a unit

a name, symbol, or design (or combo) that identifies the goods or services of sellers and distinguishes them from the goods and services of competitors

a brand that has exclusive legal protection for both its brand name and design

the brand names of manufacturers that distribute products nationally

dealer (private-label) brands

products that don't carry the manufacturer's name but carry a distributor or retailer's name instead

nonbranded products that usually sell at a sizable discount compared to national or private-label brands

illegal copies of national brand-name goods

the value of the brand name and associated symbols

the degree to which customers are satisfied, like the brand, and are committed to further purchases

how quickly or easily a given brand name comes to mind when a product category is mentioned

the linking of a brand to other favorable images

a manager who has direct responsibility for one brand or one product line; called a product manager in some firms

a process designed to reduce the number of new-product ideas being worked on at any one time

making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas

taking a product idea to consumers to test their reactions

promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers

a theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline

designing a product so that it satisfies customers and meets the profit margins desired by the firm

competition-based pricing

a pricing strategy based on what all the other competitors are doing. the price can be set at, above, or below competitors' prices.

the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow

the process used to determine profitability at various levels of sales

all the expenses that remain the same no matter how many products are made or sold

costs that change according to the level of production

strategy in which a new product is priced high to make optimum profit while there's little competition

strategy in which a product is priced low to attract many customers and discourage competition

every day low pricing (EDLP)

setting prices lower than competitors and then not having any special sales

high-low pricing strategy

setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'

pricing goods and services at price points that make the product appear less expensive than it is

Mahmoud Akrin is the founder & CEO Of GoBazzar.com.

getty

Smart consumers understand a product as well as its retailer well before they make a purchase. This has been true of consumers for decades. In past years, they would wander from shop to shop searching for products, comparing features, quality, price, brand name and more before deciding upon a purchase.

In our current age of the internet-savvy consumer, not surprisingly, smart consumers are on the rise. With all the information available literally at the tips of their fingers, consumers still engage in product comparisons to make their purchase decisions. Of course, not every buying decision requires comparison. Consumers likely compare products such as electronics and appliances, streaming devices, vehicles, beauty products, home decor items and even vacation trips, but you’ll rarely find a consumer doing extensive research before buying toothpaste.

If you’re a business owner, you need to understand these various consumer comparison habits so that you can strategize to increase visibility with these consumers who are actively searching for sellers. So, let’s take a look at how consumers compare prices to make purchase decisions.

1. The Traditional Way

This is the traditional way of comparing products, and many consumers still make use of it: enlisting the help of their family, friends and acquaintances. If anyone they know has bought a similar product, they will ask them for insight to help make their purchase decision. 

Improving Word-Of-Mouth Marketing

To tap into this consumer pool, businesses need to work on their customer satisfaction so that consumers recommend them through word of mouth. This is probably the most reliable channel for marketing. To get consumers talking about your product, you have to show them the value that your product delivers to users. Even with that, some people still need some sort of gratification in the initial phase. A solid referral program that benefits both the referee and the referrer can go a long way in word-of-mouth marketing.

2. Search Engines

Many consumers simply Google the product they want to buy and research it on the various websites offering that product. They will likely purchase it from the site that offers the best deal. It’s important to note that Amazon has gone beyond an e-commerce website today and has become a search engine in itself. Thus, it should also be factored into your marketing efforts. 

Improving SEO

Businesses need to consider SEO best practices to reach consumers across search engines. Content is king when it comes to SEO; there are plenty of articles on that, so I’ll skip to a more recent SEO trend. User comments on Google My Business pages play a major role in signaling the trust factor of a business to Google; that doesn’t just impact your rankings on Maps, but also on Google in general. I recommend maintaining good ratings on GMB to promote your overall SEO.

Amazon and Google are both search engines, but not the same. Each platform has niche information about its userbase that the other does not have; for example, Amazon has purchase and return percentage information for products and it takes that information into consideration when ranking products organically. Companies must understand these differences before devising a strategy for Google or Amazon.

3. Vertical Search Engines

In other words, price comparison websites. There are many different comparison shopping websites today, including Google Shopping, my company GoBazzar, PriceGrabber, etc. These vertical search engines allow consumers to search for products; the results list all the retail/e-commerce websites that sell that product along with the price offered.

Improving Your Presence On Price Comparison Sites 

Businesses can reach these consumers by forming agreements or partnerships with comparison shopping websites. It’s a win-win situation for both companies and consumers when you establish partnerships with comparison shopping sites, as businesses get one more major acquisition channel and customers receive more choice and convenience.

4. Price Comparison Apps

Along with comparison shopping websites, numerous comparison shopping apps have emerged, including ShopSavvy, ShopMania, etc. Many mobile-first consumers use this option for convenience.

Improving Your Presence On Price Comparison Apps

Again, partnering with price comparison sites makes life easier for both parties and gives businesses access to the app channels as well. Be sure your site is optimized for Google and Google Shopping, and that your product title and meta descriptions are nice and clean so Google crawlers are able to read and understand them.

5. Review Sites

If customers don't have an acquaintance who has bought a product similar to the one they wish to buy, they turn to review sites. There are various review sites and knowledge platforms such as Angie’s List, Quora, Trustpilot, etc. where consumers review products as well as businesses. Many consumers search for reviews for a specific product or retail website that sells that product before finally making a purchase decision.

Improving Your Reviews

Marketplaces have allowed companies to build their brands within their infrastructures; similarly, businesses should allow individuals to become influencers or voices of the community, as Google has done with Local Guides. Encourage users to follow other users, ratify users with different “badges” and, depending upon the badge, offer consumers discounts. In practice, to increase reviews, this might mean offering badges when consumers leave a review for a product they just purchased, whether on your product page or a third-party site. 

These are some of the ways in which today’s consumers are comparing products and prices. Using these tools, consumers can easily compare prices and make their decisions, and savvy businesses can meet them where they are.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

When consumers have brand preference a brand becomes a specialty good?

What is the creation of real or perceived differences in goods or services?

What makes the search for shopping goods different from the search for specialty goods?

Which of the following is one way to classify consumer products?