Figuring Out Buyer Behavior No.2
Continuing with my target segment of University of Florida students aged 18-22, I conducted interviews aiming to determine which features would lead a customer to choose my service over a similar substitute. As I analyze specific aspects of the purchase below, I will include the findings from the interviews for comparison.
To analyze this, I created an alternative pricing model to compare how the students felt about the a lump sum purchase rather than a continuous, monthly subscription. I offered a hypothetical option of the normal model of $10 a month for the information subscription and the new model of a $40 one-time purchase. After speaking with the students, I found that they were very open to a one-time purchase, but felt that $40 was too high. Back to the drawing board, I wanted to come up with a better alternative option that required less capital to enter without selling my service short. In a second round of interviews, I asked for opinions about paying a one-time fee for specific services on the site rather than access to everything. An example of this model would be $5 = step-by-step virtual wallet setup, $5 = fundamentals of blockchain tutorial, etc. This was definitely preferable to the $40 lump sum, but students didn't seem to have a very strong opinion on which was better between this model and the subscription model. When asking how the students will buy, I found an overwhelming interest in paying for the service through bitcoin and ethereum. No one was interested in going to a storefront, which would only add complications to my model. I have decided to provide several payment methods. This service will be paid for online, but rather than just taking credit cards, my service will accept crypto-currency as payment to encourage more customers.
Unfortunately, the "rightness" of the purchase is a very vague and intangible concept for my service. My first interview found that the student would feel satisfied with the purchase simply for gaining knowledge about a new kind of technology. My second and third interviews, however, found that they would only be satisfied with the purchase if they found success in investing. This introduces a complication because I will have no control over the market, and therefore, their success.
Based on these findings, I have decided that I will maintain my original decision to make the business a subscription model, but I will lower the fee to only $8 per month. This lowering should make customers feel more comfortable giving the service a test-run. I have also concluded that it is best to provide as many payment options as possible, so I will even create an option for customers to mail a check or cash for the service. Lastly, to make customers feel more satisfied with their purchase, I will add a user interface that creatively displays the progress that they have made in tutorials, so that they will at least feel that they have gained significant knowledge.
To analyze this, I created an alternative pricing model to compare how the students felt about the a lump sum purchase rather than a continuous, monthly subscription. I offered a hypothetical option of the normal model of $10 a month for the information subscription and the new model of a $40 one-time purchase. After speaking with the students, I found that they were very open to a one-time purchase, but felt that $40 was too high. Back to the drawing board, I wanted to come up with a better alternative option that required less capital to enter without selling my service short. In a second round of interviews, I asked for opinions about paying a one-time fee for specific services on the site rather than access to everything. An example of this model would be $5 = step-by-step virtual wallet setup, $5 = fundamentals of blockchain tutorial, etc. This was definitely preferable to the $40 lump sum, but students didn't seem to have a very strong opinion on which was better between this model and the subscription model. When asking how the students will buy, I found an overwhelming interest in paying for the service through bitcoin and ethereum. No one was interested in going to a storefront, which would only add complications to my model. I have decided to provide several payment methods. This service will be paid for online, but rather than just taking credit cards, my service will accept crypto-currency as payment to encourage more customers.
Unfortunately, the "rightness" of the purchase is a very vague and intangible concept for my service. My first interview found that the student would feel satisfied with the purchase simply for gaining knowledge about a new kind of technology. My second and third interviews, however, found that they would only be satisfied with the purchase if they found success in investing. This introduces a complication because I will have no control over the market, and therefore, their success.
Based on these findings, I have decided that I will maintain my original decision to make the business a subscription model, but I will lower the fee to only $8 per month. This lowering should make customers feel more comfortable giving the service a test-run. I have also concluded that it is best to provide as many payment options as possible, so I will even create an option for customers to mail a check or cash for the service. Lastly, to make customers feel more satisfied with their purchase, I will add a user interface that creatively displays the progress that they have made in tutorials, so that they will at least feel that they have gained significant knowledge.
I did not even think about approaching this assignment in this way. I do agree with the lowered price as it will make consumers more willing to try out your service. Also adding different ways to pay for this service will certainly make it more "appetizing" to customers. Cryptocurrency is already a complicated thing, making payment for the service easy will be helpful.
ReplyDelete