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
Retail
Shoppers
6,
Environmental
Factors
2,
Life-Styles
1,
Demographics
3,
Needs and
Desires
4,
Shopping
Attitudes and
Behavior
5,
Retailer
Actions
? Market Size
? Gender
? Age
? Household Size
? Marital and Family Status
? Income
? Retail Sales
? Birth Rates
? What Else?
? Culture
? Social Class
? Reference Groups
? Family Life Cycle
? Time Utilization
? Personality
? Class Consciousness
? Attitudes & Opinions
? Perceived Risk
? Importance of Purchase
Outcome
? Purchase New Product
? Stick with Old Brand
? Talk to Friends
? Seek More Information
? Nonpurchase
Types of Perceived Risk
? Functional
? Physical
? Financial
? Social
? Psychological
? Time
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,
Consumer
? Gender Roles
? Consumer Sophistication and
Confidence
? Poverty of Time
? Component of Life-Style
? In-Home Shopping
? Online Shopping
? Outshopping
? Shopping Enjoyment
? Attitudes Toward Shopping Time
? Shifting Feelings about Retailing
? Why People Buy or Do Not Buy
? Attitudes by Market Segment
– 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
Stimulus Problem Awareness Information Search
Evaluation
of
Alternatives
Purchase
Post-
purchase
Behavior
The Decision Process
Demographics Life-Style
(a)
(b)
(a) Impact of Life-Style on Demographics
(b) Impact of Purchases on Life-Style
Consumer’s
Purchase or
Nonpurchase
Retailer’s
Place of Purchase
? Store
? Home
? Office/school
? World Wide Web
Retailer’s
Good/Service
Availability
? Stock on Hand
? Delivery
Retailer’s
Purchase Terms
? Price
? Cash vs,Credit
Acceptance
? Extended Decision Making
? Limited Decision Making
? Routine Decision Making
? Impulse Purchases
–Completely Unplanned
–Partially Unplanned
–Unplanned Substitution
? Customer Loyalty
Determine
Target
Market
Approach
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
Select
Specific
Target
Market(s)
? 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?