Convenience goods are often purchased through habit or impulse because they are easily obtained by consumers and relatively inexpensive. The inexpensiveness of a good can be dependent on the income of the consumer, so economists often use the cost of a good to the average consumer when determining if a good is inexpensive. If discretionary income falls, consumers may forego purchasing goods impulsively. For this reason, product managers need to determine viable pricing points to ensure that demand for convenience goods does not wane with unpredictable market behavior.
Consumers are sensitive to convenience good price changes. Marketers need to consider price increases with respect to demand for items that a buyer may bypass due to a price hike. The objective for suppliers is to strike a balance between price movement and demand so that an incremental increase does not adversely affect the quantity sold. Relative inelasticity exists when large price fluctuations do not significantly change demand.
The purchase price of a convenience good largely determines whether a consumer chooses to buy the item. These inexpensive, spontaneous purchases result from conspicuous demand that differs from the decision to purchase gasoline and other necessary consumer nondurables.
Food and fuel have no substitutes. Convenience goods, by contrast, give the buyer greater choice. Unlike essential goods such as gasoline, convenience goods have many substitutes that a consumer can purchase instead if prices rise.
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I Accept Show Purposes. To avoid subscribers getting lost the vast library, the company goes to great lengths to serve up its content in the most fun and easy way possible. The success is undeniable with Netflix being the dominating streaming platform of the moment. Second comes access convenience or the time and effort needed to get hold of what is desired.
Chinese Hema Fresh puts strong emphasis on this dimension. At the basis of this model is a sophisticated and data-driven logistics systems, setting the example for the entire retail industry.
Third is transaction convenience or the time and effort needed to pay for products. A prime example here is Amazon that put an easy and transparent payment experience at the core of its business.
Its new Amazon Go stores even go further and remove any checkout hassles by automating the payment system, completely eliminating the cashier and waiting lines. The successful concept is set to grow to as many as 3, new U. Fourth is benefit convenience or the time and effort needed to consume the product. Consumers today are looking for simple and efficient consumption experiences, allowing them to make the best of their time.
The popular navigation app Waze, owned by Google, offers its users such a simple and intuitive user interface, providing highly contextual information like traffic, obstructions and other hazards to minimize travel time.
Wazers, as Waze calls its user base, may order coffee within the app and speed past the line when picking up their order inside a DD restaurant. Finally comes postbenefit convenience or the time and effort needed to deal with such factors as product maintenance, exchange or failure recovery. More recently, the U. Doing so, Tesla reduces the time needed for car maintenance and proactively prevents any failures. But how? Both solutions can work well to alleviate customer pain points. For businesses, the challenge is determining which option will be the best suited for your target audience.
Quite often, a big part of making your business more convenient for your customers involves trimming down, rather than adding more to your website or in-store experience. This will tell you what users prefer and what works best for your site.
There should be internal dialogue that takes place to determine if new channels eliminate the need for existing ones or if they require an overuse of company resources to manage. Delivering convenience requires a proactive mindset, one that actively anticipates the changing needs of your customers. By ensuring that your entire team is fully engaged in improving the customer experience, you will be able to eliminate friction points entirely.
A more enjoyable and streamlined process will ultimately benefit everyone, making life easier for your customers while reducing your workload. Stephanie Burns is the founder of Chic CEO , a resource for female entrepreneurs starting businesses. This is a BETA experience. You may opt-out by clicking here. More From Forbes. Nov 12, , pm EST. Nov 12, , am EST.
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