Nationwide Consumer Behavior

Role of Consumer Behavior

Consumer behavior: broad concept that critically analyzes consumer purchases with the aim of predicting future purchases and explains why a consumer settles on a certain product or service.

Positioning refers to the view and opinion a customer places on a product in relation to competition.

Consumers perceive non-basic items as unnecessary costs hence do not enjoy purchasing auto insurance. Nationwide should use creative ways to make this a good experience.

Customers look for comfort, value addition, and innovativeness because prices are almost the same. Nationwide Auto Insurance should employ a strategy that puts it in that position.

Impact of Purchasing Trends

Technological improvements have introduced advances in software and hardware creating a shift in information power from marketers to consumers, e.g., a mobile application that reminds customers to pay premiums when they fall due.

Globalization has exposed customers to volumes of easily available information from which they can make decisions (compare different providers, gauge other consumers’ reactions) and make a reliable decision.

It is paramount to project a clear organizational structure in an industry whose business threatens a company’s morality and integrity. Consumers are quite alert and dynamic, making articulate profiling a challenge.

Strategy Recommendations

In product strategy, Nationwide can extend use of already existing programs (vanishing deductible and I am on your side programs) and multiple policy packages. Also Nationwide can use of specialized car maintenance solutions by simulating past data, and mobile response units to accident scenes.

For easier availability and distribution of services, Nationwide can explore the online option.

For promotional purposes, Nationwide can use personalized strategies (e.g. I am on your side program) and social media to drive buzz marketing which is free and effective. Nationwide can also roll out ‘smart ride program’ to all states since it can be a wonderful direct marketing tool.

In pricing, Nationwide should insist on the value addition policy already in place since it is good differentiation tool.

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