Uber: Consumer Behavior Model, Segmentation, Target Market and Strategies

Uber is a form of private car services such as taxicab, and food delivery. The uber platform is accessible via an online mobile app and its website. It has been rated to be the most rapidly growing car company with most users globally. It is considered convenient, safe and inexpensive by its users. The Uber car service is flexible and gives the consumers the comfort of being their boss while utilizing the service. Uber services are not prone to fare rise as other types of transportation do especially during festive seasons and unfavorable climatic conditions. Uber car services have been able to strategically position their facilities to the target market, along with the right market segments that have boosted their consumers’ purchase decision of their services 

Part 1 

Consumer Behavior Model-How People Make Buying Decisions 

Many factors influence consumer buying decisions. Some of the factors may include personal, psychological, social, environmental, and situational. People purchase products to use them and later some dispose of them. All business owners strive to establish the reasons that create consumer loyalty and maintains their existence. Different consumer purchasing power and abilities determine their buying decisions ("Consumer Behavior: How People Make Buying Decisions," 2019). Some business owners decide to study their consumer's behaviors and habits that can help them increase their sales by locating their business at strategic positions. Most consumers are greatly influenced by environmental factors to make their buying decisions. They may include the purchase of uber service due to the urgency of reaching their destination. 

Role Involvement In The Purchase 

The involvement theory outlines that the role involvement classifications are two, high involvement and low involvement. The level of an individual involvement determines how one is willing or unwilling to purchase and consume a product or services. It also shows the amount of information one requires to make a buying decision. Involvement levels differ depending on different consumers ( Schiffman et al., 2014). Low involvement affiliates to less expensive products, that pose lesser risks to the consumers, in case they make wrong purchase options. No planning or deeper thoughts are required to make low involvement decisions. Buyers make automatic decisions to buy products under low involvement purchase decisions. Hence they require less information to make the purchase. They can also use the past knowledge to decide on the purchase options. However, high involvement purchase decisions are related to much expensive products and services, for instance, a decision to buy a house or plot. For consumers with no or less experience with a certain product requires high involvement than those doing the replacement or making an additional purchase. No cases of impulse buying with products that require high involvement rather than they are with low involvement purchase ("Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process," 2019). High involvement decision has more risks, complex and is of high prices. In the case of uber car services, its clients make high involvement decisions to determine their needs carefully to consider uber option instead of other public means of transport. 

Role Involvement In Consumer Decision Making 

Different parties may play various roles in consumer decision of buying the product. 

The initiator is the person who makes the first suggestion of the idea of buying the product. The influencer on the other part is the individual who views and gives the advice concerning the products on consideration. He or she influences the buying decision of the customer. The decider makes the great decision concerning whether the products should be bought, what to buy, the place to buy it and how to buy it. Buyer this is the final player in the purchase decision. He or she makes the final step, of purchasing the product or service. There is also the user, who consumes the product or service bought ("5 Roles Played by a Buyer While Making a Buying Decision", 2019). All business entities have to identify these roles as they impact the buying decisions of clients, regarding designing products, application of communication channels to create awareness of the products or services, and the choices promotional methods that drive the advertising budget (Boone & Kortz,2015). Knowing the right players in decision making enables the business owners to fine-tune their products and services according to their consumer's preferences. For instance in uber services the company has to ensure that they position themselves appropriately in the market to ensure that the public has a good image of their services. The outside influence to either existing or potential clients would be positive, and hence such clients would always consider uber services. 

Consumer Decision-Making Process 

The process of making decisions for customers follows different stages. The process entails making alternatives on what best fits consumer needs and wants. The stages in consumer decision making are need recognition, that entails the realization of customer needs. The search for information involves the process of getting more knowledge on the benefits and usability of the products the consumer wishes to buy. The consumer may also consult other people concerning their experience with various products and services. Other sources may include print materials and online sources. Product evaluation deals with selecting from the alternatives. Product choice and purchase is the stage in which the consumer makes the final decision of making the purchase. Post-purchase use and evaluation is the stage where consumers evaluate the usefulness of the products already purchased. Disposal of the product is the final stage where consumers decide on the best way of getting rid of their products without causing harm to the environment ("Consumer Behavior: How People Make Buying Decisions," 2019) 

In the Uber car service, the consumer of this service first needs to identify their want for the service, for example, an urgent appointment, time factor consideration and the comfort of transport service offered by the uber. He or she has to gather information on how to access the uber services and the benefits they offer, such as security and time effective. Later, the consumer evaluates other available alternatives other than uber. After evaluation, the consumers settle on the final decision of the most appropriate alternative to fit his or her needs. In the transport industry most, consumers prefer uber car services due to much benefits they avail at the comfort of their customers, making it outstand the rest transport services. 

Part 2 

Segmentation 

It is the process of grouping together groups with uniform characteristics. Uber applies demographic and geographic factors that have greatly boosted their pricing conditions. The geographic factor is essential to uber services as they need to know the areas they should target for their clients, who are ready and willing to utilize their transportation service. The demographic considerations such as age and gender enable the uber service to tailor their service according to the needs of all categories of the consumer (Bhasin, 2019). It makes their services and products effective. 

Target Market 

Uber service target the urban centers where most of their customers are based. The division of market segment lies on demographic aspects of transport market (Bhasin, 2019). 

One can rarely find users in rural areas but are almost available at all streets of city centers. At this market segment, users services do not discriminate their consumers according to the demographic aspects, rather consider all clients suitable for their services. Time factors is also not a limitation of serving their target market. As long as the uber driver and service consumer agree on the terms of service, Uber cars take their clients to their desired destination and on time. 

Target Market Strategy 

Uber car services use ‘differentiating targeting strategy’ which is cost based. They compare the capital advantage of what the customer brings and the overall wallet benefit on their side. The uber company ensures that the end customers enjoy favorable transport services at a favorable price, which is fair to both parties. They offer broad services to their clients that avail a variety of options for them to choose. Such services include Uber go, Uber XL, Uber X, Uber pool. They install GS tracking system for all their cars that ensure personal security for all their customers. Uber partnerships with a variety of car manufacturing companies have enabled them to avail customized cars that meet the needs of diverse customers. It has offered them a competitive advantage in the transport industry (Bhasin, 2019). Uber services are globally available enabling their services to be utilized and accessed in all geographic areas. 

Positioning 

Uber offers strategic benefits to their clients by locating their car services conveniently when the need arises. It makes them withstand other types of tax services, with the best service delivery. With a variety of cars and well-trained drivers, consumers can easily access uber services and on time. They value the urgency of the needs of clients with well-organized drivers who respond to clients request as fast as possible, to avoid delays. There is also the presence of price positioning that attracts uber clients from all societal backgrounds. Their prices are economy based, that favors the financial capability of their customers. Through economized pricing, they can convince the mindsets of their clients. Daily traveling expenses may lay a huge cost to people. Therefore, uber services aim at offering special transportation services to serve an urgent need (Bhasin, 2019). It avails special positioning in the market in comparison to other transport services available in the market. 

Currently, uber services are the convenient means of transport in the transport industry. For any business to thrive in a market, it should focus on good positioning and making the right market segments. Prices of products and services should be favorable. Effective terms of product and service delivery attract a pool of consumers as it influences their purchase decisions. 

References 

5 Roles Played by a Buyer While Making a Buying Decision. (2019). Retrieved from http://www.yourarticlelibrary.com/decision-making/5-roles-played-by-a-buyer-while-making-a-buying-decision/22159 

Bhasin, H. (2019). Marketing Strategy of Uber - Uber Marketing Strategy. Retrieved from https://www.marketing91.com/marketing-strategy-uber/ 

Boone, L., & Kurtz, D. (2015). Contemporary Marketing, Update 2015 . USA: Cengage. 

Consumer Behavior: How People Make Buying Decisions. (2019). Retrieved from https://2012books.lardbucket.org/books/marketing-principles-v1.0/s06-consumer-behavior-how-people-m.html 

Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process. (2019). Retrieved from https://2012books.lardbucket.org/books/marketing-principles-v2.0/s06-02-low-involvement-versus-high-in.html 

Schiffman, L., O'Cass, A., Paladino, A., & Carlson, J. (2014). Consumer Behaviour (6th ed.). Australia: Person.