Ch. 6 Consumer Decision Making

Consumer Decision Making

Commuters want and need to get to work daily therefore they need to pay to travel with mass transit or even pay to park. Transit commuters have to decide if Transit Center benefits are for them in long run. For example New york city employee and employers commuters have to determine whether transit benefits is the best service. They evaluate the cost for a regular metro if they had not signed signed up for transit benefits. It is a psychological factor as well, many people like to see what they are getting themselves into before purchasing product or service. These consumers may practice extensive decision making. They do their research before selecting this service. Transit center allows their commuter to choose their monthly expenses for commuting up to 230 dollars a month versus MTA where they offer standard  monthly and weekly metro cards and pay as you go. Transit center benefits allows you to choose your monthly expenses for both parking and mass transit, at the same time allows you to save with it's  pre-tax benefit. Once employees enroll in your company's TransitChek Program, they choose the amount from their paycheck to go toward their commute.  That amount gets deducted before taxes. Then commuters receive a commuter benefit product, either a card, pass or voucher, which will allow them to pay for commuting expenses, tax-free. This is an example of giving consumers flexibility and assurance that their money is being used properly.

Transit center tries to reduce discordance from consumers by allowing them to go online and manage benefits also using web friendly site to show commuters how much they are saving with transit commuter benefits. In addition to that tells commuters who care about the environment they live how they save money and reduce carbon emissions.

The stages of consumer decision making process:

The first stage that would lead a employee/commuter to enroll in Transit Center is the Need recognition of transit. Commuters know that they need mass transit to travel from home to work and back. Commuter in new york city for example will instantly think of purchasing metro cards to get them around mass transit. The objective is saving!


The information search takes place when companies are introduce to Transit Center Benefits. When the company has enrolled, the human resources department then introduce the services to employees of the company and inform them what Transit Center is about and how these are benefits for their employees. The employees then have to determine if this program benefits them. They start the comparison from purchasing the metro card directly from MTA kiosk or to save through transit center Transitchek program. Needless to say Transit center has helped over 500,000 employees save more than $110 million in taxes, while employers have saved over $35 million in payroll taxes. In addition Transit center sends out a positive message that attracts it's customers " Everyone benefits".

For the alternative evaluation stage its not very important because there are not too many employee commuter benefit programs that offer service such as Transit Center. The consumer does not have to compare services. Transit center service allows commuters to choose the amount from their paycheck to go toward their commute.  That amount gets deducted before taxes. It's that easy !

When employees are enrolled in Transit Center commuter benefit program and they start to understand how effective and convenient this service is, the "purchase" of service have been completed. However the post purchase behavior of the individual is to determine if this service has saved them money for the year.

Ch.5 Developing a Global Vision

Transit center is not known for globalizing their services, however they market to major cities national like Chicago, SanFransico , Philadelphia, Seattle, Boston, Delaware valley, New Jersey and of course New York City. Even though they don't offer services world wide they still share a common interest with the world, which is to reduce carbon emissions.

"Several countries have indicated in recent months that they will go carbon neutral, led by Costa Rica, New Zealand and Norway. The United Nations system itself, led by Secretary-General Ban Ki-moon, and guided by the UNEP-led Environment Management Group, is moving towards carbon neutrality. UNEP is also facilitating carbon neutrality in all sectors and all regions through its climate neutral network." found on http://www.coolplanet2009.org/climate-change-news/twelve-steps-to-lower-co2-emissions.html

Transit center headquarters is located in New York City. Their strategy for it's national marketing is to offer the same services to commuters national. New York city may use Transitchek credit cards for commuter to purchase their metro cards. Nonetheless transit has one service for it's market and promotes it the same way in these big cities. The only difference is the transportation system that is used is different.

Ch 4 The Marketing Environment

Transit Center’s target market is, of course the employees and employers of companies. They understand that today people are always looking for a bargain and people want to save.  They try to look for new ways to enhance benefits packages with TransitChek Programs. Transit offers two separate packages that company can choose best to suit that particular company and its employees. They have IRS-approved pretax benefit which not only saves employees money, also companies saves. And, the more employees the companies have enrolled, the more that company saves. They offer resources to help companies calculate how much their company can save on payroll taxes. In addition to that offering resources to help commuters calculate their savings each moth. This Transit offers their services because they recognize the external environment factors such as the raising prices of gas and increasing commuter cost. 

 Here is resourceful tool that is used by Transit Center to help its 

commuters estimate what they are saving Annually. 

Monthly commuter expenses	$
Monthly parking expenses	$
Annual salary	$   Please select                                         17,000                                         25,000                                         32,000                                         35,000                                         40,000                                         48,000                                         55,000                                         62,000                                         70,000                                         78,000                                         85,000                                         91,000

Monthly Costs without TransitCenter*	$
Monthly Costs with TransitCenter*	$

$460

 

$307

 

$

Enrolling in a TransitCenter program could net you anannual savings of $1836.

 

This one is used to help Companies Calculate payroll Tax savings ( note these are estimates) 

How many employees do you have?
How do your employees commute?
% employees using mass transit only
% employees using mass transit & driving

$

Ch.3 Ethics and Social Responsibility

Ethics and Social Responsibility

Transit Center exemplifies Social Responsibility, Transit being a non-profit company show that they are not for gain but for the well being of society, partners and commuters. Again their extra earnings for the company reinvest into the company to benefit commuters. And community. One example of this is them creating new resources to help commuters manage their benefits or even donating bikes to unfortunate kids.  Each year Transit Center develops partnership with organizations to fulfill its philanthropic responsibilities.  Just to reiterate, Transit’s goal is to better the air quality. They get involved with wide range of environmental events that help draw a relationship. This relationship starts with the other organization but ultimately drawing people in to demonstrate what it means to be ethically responsible.  Earth day organization is a great way to show society what it means to be responsible and saving taking care of the environment you live in. Transit Center is proud to sponsor Earth day because they share a common goal.

Here is a testimony from one of the renowned Companies: 

“The TransitChek Program has improved morale, saved our employees money and has given our company an opportunity to demonstrate its concern and support for its employees. It really is a win-win situation for both employer and employee." - Vice President Administration Services for MGM Studios.

Ch.2 Strategic Planning For Competitive Advantage

Strategic Planning For Competitive Advantage

Transit center is known for their benefits for mass transit but in addition to that they also offer parking Transitchek credit card that allow people that need to drive their car into the cities or parking garages before board train. This is considered a dual benefit from the company. Even though transit center goal is to have commuters take mass transit. They are also looking to diversify their market. At the same the company emphasize how taking mass transit save money and sticks to it mission statement. Realistically there are still people who may need to drive their cars daily, so the company takes this into consideration. This a great marketing strategy which does not limited to a target market.


It's competitive advantage is that the commuters can use transit credit card that can be used to purchase subway and metro passes. This saves commuters time, they will not have to pull out cash from ATM machines. The benefit is setup where their companies allocate a portion of pay check each month to be deposited on credit card. Another option is the employee can use metro cards (if live in NY state) that are mailed to employees with the Transitchek logo. If transit credit card or metro card is lost, employees can have their card mailed into them. Specifically for New York City there is a replacement center you can go to get a replacement card if lost.

What sets Transit center apart from its competitors is they offer a website and mobile application that allows users to enroll, check, change monthly benefits at any time.

Here is a testimony from one of the companies that use Transit Center benefits

“I think it's really valuable and a great benefit for our employees to put pre-tax dollars toward their public transportation. They receive them directly at home, and the enrollment is through the website. If they want to change anything, it's through the website. They have more flexibility.”

--Human Resources Associate, MindShare

Ch. 1 Transit Center

Transit Center is a non profit organization whose goal is to get US employees who live in major cities nationwide commuting g benefits to take mass transit. 

Mission Statement

“We are nonprofit organization dedicated to supporting commuters nationwide. We encourage the use of mass transit because we want to live in a world with less traffic and better air quality. Not only will fewer cars o the road lead to improved mobility, it will help preserve precious natural resources. Through our efforts we envision congestion-free communities with vital economies, and a better quality of life for everyone.”

Transit Center started off as a joint alliance with public transit and members of the business community in 1986. Their purpose was to develop ways to encourage people to use public transportation to decrease traffic and air quality.  Then officially became a commuter tax free benefit program in 1987. There are other commuter benefits programs such as ADP but the founder of Transit Center Inc., Larry Filler was one of the first to communicate with U.S. congress to develop and establish commuter benefits and internal revenue that regulates these benefits.  Transit Center became an independent non-profit corporation in 2001 and till this day works with other partnerships that support their mission.  Over 11,000 businesses utilize Transit Center benefits and 1.5 million benefit from it.    

Transit Center works with different companies to provide transit benefits to their employees.  They are also partnered with city transits to help commuters utilize resources that are helpful in commuting daily. From a production orientation perspective, transit center knows they work best with several local and national government organizations, businesses and other agencies. For example one of the organizations Transit center works with is Earth Day New York.  Earth Day New York promotes environmental awareness and solutions to a cleaner environment. Taking mass transportation in itself reduces gases that cause pollution from vehicles.

Transit focus is mainly for its commuters offering a pre-tax benefit and saving more on their paychecks. From a market orientation perspective Transit is not focused on making a profit but to benefit commuters and the environment we live in. 

Transit center long term goal is get majority of companies nationwide to enroll in commuter benefits. Many individuals may not want to travel with mass transit because they like the convenience of getting up and going but as a society we have to remember how it can benefit our everyday air.