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Identifying and Understanding Consumers: Thirteenth Edition, Global Edition

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MERLY MATHEWS RCBS
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49 views

Identifying and Understanding Consumers: Thirteenth Edition, Global Edition

Uploaded by

MERLY MATHEWS RCBS
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

Retail Management: A Strategic

Approach
Thirteenth Edition, Global Edition

Chapter 7
Identifying And
Understanding
Consumers

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Figure 7.2 What Makes Retail
Shoppers Tick

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Consumer Demographics and
Lifestyles

Consumer Demographics Consumer Lifestyles


• objective, quantifiable, • ways in which individual
easily identifiable, and consumers and families
measurable population (households) live and spend
data time and money

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Helpful Facts for Understanding.
Demographics (1 of 2)
• Typical household
• US- $54,000
• India - $1670
• 400mn Millennial ( born after 1982)
• High incomes lead to high discretionary income

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Understanding Consumer Lifestyles:
Social Factors
• Lifestyle
– Culture
– Reference Groups
– Social Class
– Time Utilization
– Household Life Cycle
– Family Life Cycle

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Understanding Consumer Lifestyles:
Psychological Factors
• Lifestyle
– Personality
– Attitudes
– Perceived Risk
– Class Consciousness
– Purchase Importance

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Figure 7.3 Perceived Risk and
Consumers

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Retailer Strategies to Reduce
Perceived Risk by Shoppers (1 of 2)
• Functional– product usage testing by retailer; especially
private labels. Double check returned “B” goods. Simulate
wear for new goods.
• Physical- safety testing, reduce salt and fat in food
products
• Financial- money back guarantee and exchange privileges

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Retailer Strategies to Reduce
Perceived Risk by Shoppers (2 of 2)
• Social— co-branding of private label products with major
high-quality national brands (Kirkland by Starbucks)
• Psychological– showing empathy for consumer
• Time- double money back guarantee; auto dealers picking
and returning recalled cars

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Illustrations of Life Styles
• Gender Roles
• Consumer Sophistication and Confidence
• Poverty of Time
• Component Lifestyles

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Figure 7.4 Blurring Gender Roles

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Gender Segmentation and Retail
Prices
Please click URL to view:
https://youtu.be/aXS17KQQdUc

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Three Special Market Segments
• In-Home Shoppers
• Online/mobile Shoppers
• Out shoppers

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Online 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

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.


Attitudes Towards Shopping
• Level of shopping enjoyment
• Shopping time
• Cautious Optimism and Disparity in Wealth Effect

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Shopper Segmentation
• Shifting feelings about retailing
• Attitudes by market segment
‒ Involved
‒ Spontaneous
‒ Apathetic
• Attitudes toward private brands

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Top Reasons for Leaving an Apparel
Store Without Buying
• Change in shopping goals
• Deficiencies in merchandise assortment (cannot find an
appealing style, right size, fit)
• Lack of salesperson support and unsatisfactory in-store
experience
• Cannot find a good value

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Table 7.3 Global Shopping Attitudes
and Behavior
Why Consumers in 51 Countries Shop at a Specific (% saying highly
Retailer influential):
Good value for the money 61
Lowest prices 58
Convenient location 57
Great sales and promotions 55
Desired products in stock 54
Organized store layout (ease of shopping) 42
Friendly, knowledgeable employees 40
Fast checkout 38
Customer loyalty program 28

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Cross-Shopping
• Shopping for a product category at more than one retail
format during the year
• Visiting multiple retailers on one shopping trip

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Figure 7.6 The Consumer Decision
Process

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Figure 7.7 Key Factors in the
Purchase Act

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Types of Consumer Decisions

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Types of Impulse Shopping
• Completely unplanned
• Partially unplanned
• Unplanned substitution
• Retail atmospherics
• Enhanced service mix – related + unrelated to core

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Figure 7.10 Devising a Target
Marketing Strategy

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Possible Retailer Approaches
• Mass Marketing
– Reliance/More Department Stores
• Concentrated Marketing
– Discount stores/Health stores
• Differentiated Marketing
Decathlon

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Copyright

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