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Retail Customers

Chapter 3

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Goals for Chapter 3

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Goals for Chapter 3 Discuss Five Patterns and Trends the

Retailer must be aware of

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Population and Demographics

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Geographic and Economic

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Lifestyle

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Lifestyle

Physical and Natural

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Lifestyle


Technological and Informational

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Lifestyle



Discuss Factors Influencing Buying

Behavior

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Lifestyle



Discuss Factors Influencing Buying

Behavior

Discuss Stages of Buying Process

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Population and Demographics How many ultimate consumers are

there? The answer is the Population.

Detail by location down to county level

and city greater than 2,500 can be

found in Bureau of the Census data.

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Population and Demographics How many ultimate consumers are

there? The answer is the Population.

Detail by location down to county level

and city greater than 2,500 can be

found in Bureau of the Census data.

Who is the ultimate consumer? The

answer is found through

Demographics. Again, detail by

location down to county level and city

greater than 2,500 can be found in

Bureau of the Census data.

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Demographic Trends

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Demographic Trends

PopulationGrowth

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Demographic Trends

PopulationGrowth

Age Distribution

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Demographic Trends

PopulationGrowth

Age Distribution

Shifting Geographic

Centers

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Demographic Trends

PopulationGrowth

Age Distribution

Shifting Geographic

Centers Urban Centers

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Demographic Trends

PopulationGrowth

Age Distribution

Shifting Geographic


Mobility

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Demographic Trends

PopulationGrowth

Age Distribution

Shifting Geographic


Mobility

Education

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Demographic Trends

PopulationGrowth

Age Distribution

Shifting Geographic


Mobility

Education

Marriage and Divorce

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Demographic Trends

PopulationGrowth

Age Distribution

Shifting Geographic


Mobility

Education

Marriage and Divorce

Makeup of

Households

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Demographic Profiles

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Income

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Income

Age

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Income

Age

Gender

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Income

Age

Gender

Race

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Income

Age

Gender

Race

Religion

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Income

Age

Gender

Race

Religion

Family Size

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Income

Age

Gender

Race

Religion

Family Size Education

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Income

Age

Gender

Race

Religion

Family Size Education

Occupation

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DemographicG

roups

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DemographicG

roups Baby Boomers -- Born Between 1946 and 1964.

They are now middle aged (37- 55). 75 million

people at their peak earning years

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DemographicG




Fifty Plus Mark

et (aged and aging). Control over75% of nations wealth. Are no longer sick and

dying but are alive and active. Their spending

patterns differ significantly from under fifties

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DemographicG




Fifty Plus Mark




Young and Privileged - Offspring of Baby

Boomers and Grandchildren of Fifty plus.

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DemographicG




Fifty Plus Mark





Boomers and Grandchildren of Fifty plus. Generation X -- Born between 1965 and 1976

(25 - 36). Smallest Demographic Group

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DemographicG




Fifty Plus Mark





Boomers and Grandchildren of Fifty plus. Generation X -- Born between 1965 and 1976

(23 - 34). Smallest Demographic Group

GenerationY - Born after 1976

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Growth in Minority Markets

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Growth rate in Minorities

(Black, Hispanic, Asian)

is twice as fast as the

general population

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general population

Ignoring racial

demographics, particularly

in urban areas, is very

short sighted

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general population

Ignoring racial

demographics, particularly

in urban areas is very

short sighted Dual Career families are

growing. Retailers must

target the needs and wants

of this growing market

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Patterns and Trends

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Patterns and Trends Urban Growth versus Rural

Stagnation -- more true in retailing

than in population. New super stores

are serving as magnets andimprovements in travel make rural

retailing a dying breed

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Retailers must keep track of the

overall macro economic cycles of

recession and growth

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Retailers must keep track of the

overall macro economic cycles of

recession and growth

IncomeGapbetween the haves

and the have nots will continue to

grow offering markets for

specialized retailers.

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Household Economic Trends

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Household Economic Trends Income Growth

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Personal Savings

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Personal Savings

Women in the Labor

Force

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Personal Savings

Women in the Labor

Force

Widespread use of

Credit

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Macro Economic Factors

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Macro Economic Factors Gross Domestic Product

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Interest Rates

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Interest Rates

Economic Turbulence

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Interest Rates

Economic Turbulence

Unemployment

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Lifestyle (Psychographic) Trends

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Lifestyle (Psychographic) Trends Male and Female Role

Flexibility

Deterioration ofInstitutional Confidence

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Flexibility


Management of Time vs.

money (Convenience)

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Flexibility



Money (Convenience)

Value and Lifestyle

Fragmentation

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Flexibility



money (Convenience)

Value and Lifestyle

Fragmentation

Baby Busters

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Physical and Natural Patterns and

Trends

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Trends Environmental

Marketing --marketing

with an eye to

environmental issues is a

growing trend

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with an eye to

environmental issues is agrowing trend

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with an eye to


New Ageand Self Help

products and stores are

growing in popularity

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with an eye to


New Ageand Self Help

products and stores are

growing in popularity

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Patterns and Trends

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Patterns and Trends

Fastest changing area of retail

environment both in terms of

managing the retail store and

in the productsbeing sold.

Well educated, high income

baby boomers are receptive

to electronic high technology

products

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Patterns and Trends

Fastest changing area of retail

environment both in terms of

managing the retail store and

in the productsbeing sold.

Well educated, high income

baby boomers are receptive

to electronic high technology

products Fastest growing segment of

retailing is the high end

computer, telephone and

other technological gadgets

fl i

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Factors Influencing Consumer

Buying Behavior (1 of 4)

fl i C

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Psychological Factors

F I fl i C

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Motivation -- Maslovs Hierarchy of Needs

F I fl i C

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Physiological

F I fl i C

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Physiological Safety

F I fl i C

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Social

F t I fl i C

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Social

Esteem

F t I fl i C

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Social

Esteem

SelfActualization

F t I fl i C

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Social

Esteem

SelfActualization Perception (Covey example)

F t I fl i C

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Social

Esteem


Learning

F t I fl i C

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Social

Esteem


Learning

Attitudes (What does FORD stand for?)

F t I fl i C

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F t I fl i C

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Buying Behavior (2 of 4) Personal Factors

F t I fl i C

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Physical Characteristics - Age, Gender,

Race, Size, etc.


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Race, Size, etc.

Personality - Means of coping with the

world around an individual


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Race, Size, etc.



Self-Concept - The image we have of

ourselves combined with our image

within a social context


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Race, Size, etc.



Self-Concept - The image we have of

ourselves combined with our image

within a social context

Lifestyle

-Consists of

Activities,

Interests, Opinions and Demographics


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Physical Characteristics - Age, Gender,Race, Size, etc.


world around an individual Self-Concept - The image we have of

ourselves combined with our imagewithin a social context

Lifestyle - Consists ofActivities,

Interests, Opinions and Demographics Life Cycle - From Family Economics.

Different stages of consumer spendingas we mature and age


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Social Factors


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Social Factors

The Family - Most important Social

influence


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Social Factors


influence

ReferenceGroups - Peers,

colleagues, coworkers, clubs, gangs

etc. Often serves as surrogate

family in todays dysfunctional

society.


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Social Factors


influence

ReferenceGroups - Peers,

colleagues, coworkers, clubs, gangs

etc. Often serves as surrogate

family in todays dysfunctional

society. Social Class - Combination of

income, occupation, education,

place of residence

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g


Product Characteristics

Product Tangibility -- How does the

product look, feel, smell, sound ortaste.

Product tangibility must match consumer

wants, desires, needs and expectations.


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g







Product Durability -- How long will the

product last. Durable goods is

classification of long-lived goods.

Nondurables are products not expected to

last long.


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g







Product Durability -- How long will the

product last. Durable goods is

classification of long-lived goods.

Nondurables are products not expected to

last long.

Product Availability -- Relates not to

whether a good can be found but to the

amount ofeffort a consumer is willing to

spend on a product.

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Consumer Behavior Model

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(Stages of Buying Process) PassiveInformationGathering -

Receiving and processing of

information regarding existence,

quality, services, stores, convenience,

pricing, advertising that consumermight consider in making a purchase


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(Stages of Buying Process) PassiveInformationGathering -

Receiving and processing of

information regarding existence,

quality, services, stores, convenience,

pricing, advertising that consumermight consider in making a purchase

Need Recognition - Consumer

recognizes a need or desire for the

product or service. When the need ishigh relative to barriers to resolving

need there is a shop trigger event


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(Stages of Buying Process)


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ActiveInformation

Gathering - Comparison

of different products,

brands, colors,capabilities, etc.


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ActiveInformation

Gathering - Comparison

of different products,

brands, colors,capabilities, etc.

PurchaseDecision - Two

decisions. First is buy or

no-buy. If decision is tobuy then timing of

purchase is second

decision.


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Transaction - Final

negotiation as to Price,

Store, Credit or Cash, etc.

An opportunity forretailers to market

extras.


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Transaction - Final

negotiation as to Price,

Store, Credit or Cash, etc.

An opportunity forretailers to market

extras.

Post Purchase

Evaluation

-Did theproduct and retail

experience meet the

consumers expectations

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Summary

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Summary

Selling the better mousetrap is not enough

S

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Summary


In order to succeed, a retailer must be aware of the

patterns and trends effecting the retail environment.

S

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Summary




Failure to keep up with trends will cause retailers tolocate in the wrong locations, sell the wrong product

and fail to meet their customers needs

S

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Summary






Many factors influence the consumers purchase

decision including psychological, personal and socialfactors

S

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Summary






Many factors influence the consumers purchase

decision including psychological, personal and socialfactors

The high rate of retail business failure is indicative of

Documents

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