Buisness Knowledge

A customer is the person who buys the product and a consumer is the person who receives it, wears it, uses it etc.

B2B means business to business.

By a 'Market Segment' I mean a grouping of people who like the same sort of product and look for a similar price or quality of that product. If you were a business person trying to sell your product to a specific market, you would break up the market into segments. I.e price, gender and Interests. You would then account for these customers particular needs and then target them accordingly.

The Pareto Principle also known as the 80-20 simply means that 80% of your customers will buy 20% of your business. Another way to put it is that 80% of your sales come from 20% of your clients.

A customer can be analysed in two separate ways, what and why. This means that you can put them into a segment of the market to explain what category they fall into. However, to find out what that customers emotional driver is behind buying a product is the why they want to buy it.

A rational decision when buying a product is merely when a customer buys it for its purpose or functionality.

An irrational decision when buying a product is when you buy it to make you look good or that it will enhance your life in some way.