Identifying and understanding customers common mistakes

Common mistakes

• Assuming all customers have the same needs

  Thinking customer needs are uniform across all segments.

  Fix itRecognise that needs differ by demographic, psychographic, and behavioural factors, and segment the market accordingly.

• Assuming higher price always means higher profit

  Many students think that simply raising the price of a product will increase profit.

  Fix itHigher price can reduce demand; the profit effect depends on the price elasticity of demand and the cost structure.