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Chapter 7
• To Examine the Importance of Identifying,
Understanding, and Appealing to Customers
• To Enumerate & Describe Segmentation Factors
and their Application
• To Examine Consumer Attitudes and the
Decision Making Process
• To Examine Target Market Planning
• To Note Environmental Factors that Affect
Consumers
2.
Life-Styles
3.
Needs and
Desires
1.
Demographics
4.
Shopping
Attitudes and
Behavior
6.
Environmental
Factors
Retail
Shoppers
5.
Retailer
Actions
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Market Size
Gender
Age
Household Size
Marital and Family Status
Income
Retail Sales
Birth Rates
What Else?
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Culture
Social Class
Reference Groups
Family Life Cycle
Time Utilization
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Personality
Class Consciousness
Attitudes & Opinions
Perceived Risk
Importance of Purchase
Types of Perceived Risk
• Functional
• Physical
• Financial
• Social
• Psychological
• Time
Consumer
Factors Affecting Perceived Risk
• Product/Retailer Newness
• Consumer’s Budget
• Level of Consumer Experience
• Number of Alternatives
• Social Visibility
• Amount of Information Available
• Time Available to Shop
• Urgency of Need
• Price of Product
• Etc.
Outcome
• Purchase New Product
• Stick with Old Brand
• Talk to Friends
• Seek More Information
• Nonpurchase
• Gender Roles
• Consumer Sophistication and
Confidence
• Poverty of Time
• Component of Life-Style
• In-Home Shopping
• Online Shopping
• Outshopping
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Shopping Enjoyment
Attitudes Toward Shopping Time
Shifting Feelings about Retailing
Why People Buy or Do Not Buy
Attitudes by Market Segment
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Shopping Avoiders
Time-Starved Shoppers
Responsible Shoppers
Traditional Shoppers
• Attitudes Toward Private Brands
• More than One Retail
Format
• More than One Retailer
• What to Buy
• Where to Buy
The Decision Process
Stimulus
Problem
Awareness
Evaluation
of
Alternatives
Information
Search
Purchase
(b)
Demographics
Life-Style
(a)
(a) Impact of Life-Style on Demographics
(b) Impact of Purchases on Life-Style
Postpurchase
Behavior
Retailer’s
Place of Purchase
• Store
• Home
• Office/school
• World Wide Web
Retailer’s
Purchase Terms
• Price
• Cash vs. Credit
Acceptance
Consumer’s
Purchase or
Nonpurchase
Retailer’s
Good/Service
Availability
• Stock on Hand
• Delivery
• Extended Decision Making
• Limited Decision Making
• Routine Decision Making
• Impulse Purchases
– Completely Unplanned
– Partially Unplanned
– Unplanned Substitution
• Customer Loyalty
Determine
Target
Market
Approach
Select
Specific
Target
Market(s)
Study
Characteristics,
Needs, and
Attitudes of
Target Market(s)
Examine How
Consumers Make
Decisions--by
Product Category
Develop and
Enact-Appropriate
Retail Strategy
Mix(es) for the
Target Market(s)
Chosen
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State of Economy
Rate of Inflation
Price Wars
New Retail Formats
Government Regulations
What else?
• Mass Marketing
• Concentrated Marketing
• Differentiated Marketing
• Importance of Identifying, Understanding,
and Appealing to Customers
• Demographic and Life-style Factors and
their Application to Retailing
• Consumer Decision Making Process
• Target Market Planning
• Environmental Factors that Affect
Consumer Shopping
Questions?
Questions?