Customer Profiling and Consumer Decision Making Process

      Background of the CaseWith more than $3 billion in sales in 2016, Geek City is one of the Northeast’s fastest growing retailer of consumer electronics and appliances. Started in 2010 to fill the void after the closure of Circuit City, Geek City has grown into one of the most prominent retailers in the Northeast, especially in the Washington, DC tristate area. More than half of its 50 stores are located in this region. Even though the retailer has made impressive gains in the early years, of late its overall growth rate has slowed down considerably.  The company has recently hired Mr. John Harrison as its CEO to reverse the negative growth trend. Prior to joining Geek City in June 2017, Mr. Harrison has had a long and successful career in the consumer electronics segment at leading retailers such as Best Buy, Staples, etc.Mr. Harrison is well aware of the challenges facing retailers and especially those in the consumer electronics segment. He had witnessed firsthand the shutting down of large consumer electronics retailers like Circuit City, RadioShack, etc. He is aware that brick-and-mortar retail stores find it almost impossible to compete solely on prices with online outlets. A physical store is also limited by how much stock it can carry. However, he also feels that many customers, especially those who are not very tech savvy, prefer the shopping experience at an actual (physical) brick-and-mortar store. These customers appreciate guidance and advice from store staff as to which devices/appliances might best fit their specific needs. The experience of physically handling the products is invaluable. Installation and aftersales service provided by a physical retail store is a big bonus.Mr. Harrison has recommended that each store should study the demographics of the local market and stock merchandise accordingly. He has emphasized that stores should undertake measures to gain insight into the needs of the customer and offer appropriate solutions.  For example, if a customer says that her family has a regular “movie night,” then she is a prime candidate for the expensive home theater equipment. Likewise, shoppers with large families are shown larger appliances and time-saving products. The company attempts to entice the high spenders by providing services like a “personal shopper,” to locate unusual items, alert them on preferred items, and coordinate service calls.Mr. Harrison would also like Geek City to devise strategies to attract large corporate business. This is an area that has not been adequately tapped by Geek City. Mr. Harrison feels there is opportunity for smaller retailers like Geek City to operate in the Business to Business (B2B) space. This will not only ensure a steadier stream of revenue but will also improve the brand equity of Geek City.You have been appointed as the manager of the Geek City store at Bethesda, Maryland. Located in one of the most affluent areas in the country, the Bethesda store has been personally chosen by Mr. Harrison to pilot the new marketing strategy. Bethesda, MD has a large population of highly educated technology professionals. The region is also home to a large number of corporate and large business establishments. It is has a nice mix of urban and suburban homes with a diverse population. Soon after you took charge as Manager of this store in October 2017, Mr. Harrison personally phoned to congratulate you. He assured all possible help and would like your store to be a model for the entire Geek City chain of stores. Deliverables 1. Develop detailed profiles for different customer segments that you hope to attract to your Geek City store. Include aspects such as age, income, personality, profession, lifestyle, and other characteristics you think are relevant in the context of this case. Please provide justification in support of the profiles that you have suggested.2. Geek City’s internal marketing research team has identified 4K Ultra HDTVs to be one of the most popular purchases during the holiday season. In this connection, examine how Figure 3.9 Stages in the Consumer’s Purchasing Process (refer Chapter 3 How People Make Buying Decisions) may be helpful in persuading potential customers to buy a high involvement product as a 4K Ultra HDTV. 3. There are a number of commercial establishments and corporate offices in the vicinity of your store. What strategy would you adopt in order to make large volume sales to these large businesses? Discuss how your Business-to-Business (B2B) marketing strategy will be different from your marketing strategy vis-à-vis individual customers. (Business Buying Behavior in Recommended readings will be useful for this question).