After reading the passage “Capturing the Hearts of Loyal Customers” by Lee, Wei Chee, I am thinking of the targeting and hence positioning strategy of the retail store Megamate.

As mentioned in the class, competing with price is not a good strategy since it will continuously decrease the profit margin. A better approach should be increasing the value of your products in the eyes of the consumers. The strategy used by Mega is to offer excellent technical support. It is no doubt very impressive to the Baby Boomers and Generation Xers.

However, is this strategy workable for all generations? I think that this strategy may not be able to attract the teenagers. We can find two characteristics inside this generation. Firstly, they are extremely price conscious. Even if there is only a very small change in price, many of them will reconsider their consumption decision. Secondly, they don’t see much value from extra services unless that product is expensive. For example, when people from the older generation go to a place to have their lunch, they may consider the service as important as the food. However, teenagers always ignore this part as long as the price is good for them and the food is not that bad.

To be honest, I am not sure is it because of the difference in age only or is it the change of the thinking pattern of a new generation. It is because when I am looking at my younger relatives who have already worked for 5 years or above, I find that they also don’t really care about the services. If it is really the case, then we should think carefully how to deal with this change and find out is there anything that this new generation can see the value.