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Chapter Objectives
To discuss why it is important for a retailer to properly identify, understand, and appeal to its customers
To enumerate and describe a number of consumer demographics, lifestyle factors, and needs and desires – and to explain how these concepts can be applied to retailing
To examine consumer attitudes toward shopping and consumer shopping behavior, including the consumer decision process and its stages
Demographics and Lifestyles Demographics
– consumer data that is objective, quantifiable, easily identifiable, measurable
Lifestyles– ways in which
consumers and families live and spend time and spend money
Typical household has an annual income of $45,000 Top 1/5 of households earn $85,000 or more Lowest 1/5 of households earn under $18,000 High incomes lead to high discretionary income There are 5 million more females than males Three-fifths of females age 20 and older are in the labor force Most U.S. employment is in services More than 25% of all U.S. adults age 25 and older have at
least graduated from a four-year college
Understanding Consumer Lifestyles: Social Factors
Lifestyle
CultureReference
Groups
Social Class
FamilyLife Cycle
Time Utilization
HouseholdLife Cycle
Understanding Consumer Lifestyles: Psychological Factors
Lifestyle
Personality Attitudes
PerceivedRisk
PurchaseImportance
ClassConsciousness
Illustrations Gender Roles
Consumer Sophistication
and Confidence
Poverty of Time
Component Lifestyles
Gender Differences?
consumer-knowledge.com
Curated ConsumptioniBood
e.g., Woot
Three Special Market Segments
• Shopping is discretionary, not necessary
• Convenience is important
• Active, affluent, well-educated
• Self-confident, younger, adventuresome
• Time scarcity is not a motivator
In-Home Shoppers
• Use of Web for decision- making process as well as buying process
• Convenience is important
• Above average incomes, well-educated
• Time scarcity is a motivator
Online Shoppers
• Out-of-hometown shopping• Young, members of a large
family, and new to the community
• Income and education vary• They like to travel, enjoy
fine food, are active, and read out-of-town newspapers
Outshoppers
Environmental Factors and Consumers
State of the Economy Rate of Inflation Infrastructure for Shopping Price Wars Emergence of New Retail Formats People Working at Home Regulations on Shopping Changing Social Values and Norms
Problem AwarenessProblem Recognition
A. DefinitionB. Cues
1. Internal2. External
C. Types*1. Merchandise2. Social
a. Social Experiences Outside the Homeb. Communication with others having the same
interestsc. Peer group attractiond. Status and Authoritye. Pleasure of Bargaining
3. Personala. Role Playingb. Diversionc. Self-Gratificationd. Learning About New Trendse. Physical Activityf. Sensory Stimulation
Information SearchII. Shopping Alternatives
A. Internal SearchB. External Search
Influenced by:-Perceived Risk-Shopping Orientations-Attitudes towards Shopping-Situational Factors, etc.
Shopping Orientations:1. Economic Shopper2. Personalized
Shopper3. Ethical Shopper4. Apathetic Shopper
Figure 7-2: Perceived Risk and Consumers
Department Store Shopping MotivesShopper Typologies Metastudy
Hedonic Shopping Motivations (Arnold and Reynolds, 2003):-Adventure Shopping-Social Shopping-Gratificaiton Shopping-Idea Shopping-Role Shopping-Value Shopping
Attitudes Towards Shopping
Shopping enjoyment Shopping time Shifting feelings about
retailing Why people buy or not on a
shopping trip Attitudes by market segment Attitudes toward private
brands
Evaluation of Alternatives
• Screening AlternativesA. Attitude Formation
Purchase
IV. Decision
A. Choice RulesB. Other Factors
Post-Purchase Evaluation
V. Outcome
A. Satisfaction/DissatisfactionB. Dissonance Reduction
Top Reasons for Leaving an Apparel Store Without Buying
Cannot find an appealing style Cannot find the right size Nothing fits No sales help is available Cannot get in and out of the store easily Prices are too high In-store experience is stressful Cannot find a good value
Table 7-3: Where America ShopsType of Retailer % Shopping At
• Supermarkets 72
• Discount department stores/supercenters 66• Drugstores 61• Convenience stores 59
• Apparel stores 36
• Home improvement centers 31
• Membership clubs 29
• Book/music stores 22• Consumer electronics stores 21
Chapter Seven Discussion Questions: 4, 8