Short answer
Focus marketing efforts and product development on clearly communicating superior product quality and competitive pricing, as these are the primary drivers of consumer choice in this service context.
- Field
- Innovation & Markets
- Source
- Eprints (Universitas Negeri Makassar) (2017)
- Method
- Quantitative research with qualitative elements (interviews).
- Sample
- 100 respondents
- Evidence
- Strong effect for product and price, moderate for others, negligible for process.
Product attributes and pricing are the most significant factors influencing consumer choices in service-based businesses, while process elements have a negligible impact. This innovation & markets research insight is drawn from a 2017 study published in Eprints (Universitas Negeri Makassar). Using Quantitative research with qualitative elements (interviews). with 100 respondents, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Focus marketing efforts and product development on clearly communicating superior product quality and competitive pricing, as these are the primary drivers of consumer choice in this service context.
Product and Price Drive Consumer Decisions in Service Industries
Product attributes and pricing are the most significant factors influencing consumer choices in service-based businesses, while process elements have a negligible impact.
Eprints (Universitas Negeri Makassar) · 2017
Key Findings
- 01Product variables had the most significant influence on consumer decisions.
- 02Price, promotion, people, location, and physical evidence followed in influence.
- 03Process variables showed no significant relationship or influence on consumer decisions.
Application
Design takeaway
Focus marketing efforts and product development on clearly communicating superior product quality and competitive pricing, as these are the primary drivers of consumer choice in this service context.
How to apply
When developing a new service or refining an existing one, conduct market research to identify which marketing mix elements are most critical to your target audience's purchasing decisions. Allocate resources accordingly, emphasizing the highest-impact factors.
Project actions
- 01Clearly define each element of the marketing mix you intend to investigate.
- 02Ensure your data collection methods can capture nuanced consumer perceptions of each element.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilized a mixed-methods approach (quantitative and qualitative).
- +Employed statistical analysis (path analysis) for robust data interpretation.
Limitations
The findings might not apply to all service industries or different cultural contexts. The definition and measurement of 'process' could be a factor.
Reliability & validity
Reliability would depend on consistent questionnaire administration and participant interpretation. Validity is supported by using multiple data collection methods and statistical analysis, but may be limited by the specific context of a single tailor shop.
Think critically
To what extent do the findings regarding 'process' being insignificant hold true for highly technical or safety-critical services where process failure can have severe consequences?
Design Principles
"Prioritize core offering attributes and value proposition in consumer decision-making."
Understanding which elements of the marketing mix most strongly influence consumer decisions allows businesses to strategically allocate resources. Focusing on product features and competitive pricing can yield a greater return on investment than efforts spent on optimizing service processes, which in this context, did not significantly sway consumer choice.
What This Means for Your Design
For services like tailoring, what you offer (the suit) and how much it costs are way more important to customers than how smoothly the service happens. Make your suits great and price them right!
How to use in your project
- 1.Use this study to justify focusing on product features and pricing in your own design project's marketing strategy.
- 2.Cite this research when discussing the relative importance of different marketing mix elements in your analysis.
Add to My Project
Quick Cite
Paragraph starter
This research by Aras et al. (2017) highlights that in service industries, particularly for tailored goods, product attributes and pricing are paramount in influencing consumer decisions, with process elements showing minimal impact. This suggests that design projects aiming to enter or compete in service markets should prioritize the tangible aspects of their offering and its value proposition over the intricacies of service delivery mechanisms when shaping their market strategy.
Source
Eprints (Universitas Negeri Makassar)
The Effect of Service Marketing Mix on Consumer Decision Making
journal · 2017
View sourceQuestions About This Research
- What does the research say about product and price drive consumer decisions in service industries?
- Focus marketing efforts and product development on clearly communicating superior product quality and competitive pricing, as these are the primary drivers of consumer choice in this service context. Evidence: Eprints (Universitas Negeri Makassar) (2017).
- Why does "Product and Price Drive Consumer Decisions in Service Industries" matter for design?
- Understanding which elements of the marketing mix most strongly influence consumer decisions allows businesses to strategically allocate resources. Focusing on product features and competitive pricing can yield a greater return on investment than efforts spent on optimizing service processes, which in this context, did not significantly sway consumer choice.
- How can designers apply this research?
- Focus marketing efforts and product development on clearly communicating superior product quality and competitive pricing, as these are the primary drivers of consumer choice in this service context.
- What were the main findings?
- Product variables had the most significant influence on consumer decisions.. Price, promotion, people, location, and physical evidence followed in influence.. Process variables showed no significant relationship or influence on consumer decisions.
- What research method was used?
- Quantitative research with qualitative elements (interviews). with 100 respondents.
- How strong is the evidence?
- Evidence strength is rated Strong effect for product and price, moderate for others, negligible for process., based on a 2017 journal from Eprints (Universitas Negeri Makassar).
- What should I do differently in my next project?
- When developing a new service or refining an existing one, conduct market research to identify which marketing mix elements are most critical to your target audience's purchasing decisions. Allocate resources accordingly, emphasizing the highest-impact factors.
- What are the limitations?
- The study was conducted at a single tailor shop, limiting generalizability. The 'process' variable's lack of influence might be specific to the context or how it was measured.