The paper "Consumer Behavior Trends in Service Industry" is a perfect example of a case study on marketing. To succeed in the global market, organizations require rapid and reliable access to the market segments from Africa to Asia and America to Europe. FedEx Express is one of the leading companies in the transportation service. FedEx delivers over 3.3 million packages daily to 215 countries. The company’ s customers are in excess of one million and are served by over 140,000 workers stationed to approximately 50,000 drop-off centers worldwide. With 645 operational aircraft and roughly 42,000 vehicles, it forms an integrated global network.
This paper focuses on the challenges FedEx faces specifically on customer relations, winning competition and marketing strategies relative to the ever-changing consumer behavior (Consumer buying behavior, n.d. ). Background of FedEx Fred Smith presented a paper on logistics while attending Yale. The paper sanctioned the need to establish a rapid delivery service to distribute spare parts and he also mentioned that advances in computers would one day replace physical inventory management through a system that moves data faster. Although he scored a C grade, upon returning from the Military he set up ‘ hub and spoke’ system for sorting out delivery parcels in a central location in America, and suggested that the system can be tried elsewhere in the United States.
After subsequent independent research studies, a need for overnight delivery in business was established. This formed the genesis of Federal Express in 1973 (CustomerServiceWorld, 2000). Federal Express (FedEx), after establishment as a major contender in the airfreight industry, FedEx scheduled three services to increase delivery volume. These include Standard Air, Priority-One and Courier Pack.
Within the first three years of starting operations, FedEx had adopted a unique policy of limited package size and a strategic hub system. This strategy stirred its delivery volume to an average of 20,726 packages per day in 1976 compared to 10,521 delivered the previous year. This is put FedEx on high standards, carving out a niche in the market through reliable and immediate delivery on an overnight basis. However, the existence of untapped market growth potential and lack of marketing-led its managers in 1976 to forge strategies on how its marketing strategy should be accommodated in the financial budget (Consumerreports, 2008). What are consumer behavior concepts? The act of buying behavior refers to processes of making decisions by people who wish to purchase products or services.
Based on this definition, consumer buying behavior refers to the buying behavior of the consumer. Purpose of analyzing consumer behavior A company or organization is expected to assess consumers buying behavior in order to gorge buyer’ s reactions in relation to marketing strategy employed and the resulting impact of the firm’ s business position.