1. Identifying
and
Understanding
Consumers
Chapter 7

2. Chapter Objectives
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

3. What Makes Retail Shoppers Tick2.
Life-Styles 3.
Needs and
Desires
Retail
Shoppers 1.
Demographics 4.
Shopping
Attitudes and
Behavior 6.
Environmental
Factors 5.
Retailer
Actions

4. Demographics Market Size Gender Age Household Size
Marital and Family Status
Income
Retail Sales
Birth Rates
What Else?

5. Consumer Life-Styles Bases
Culture
Social Class
Reference Groups
Family Life Cycle
Time Utilization

6. Psychological Factors
Personality
Class Consciousness
Attitudes & Opinions
Perceived Risk
Importance of Purchase

7. Impact of Perceived Risk on Consumers
Types of Perceived Risk
Functional
Physical
Financial
Social
Psychological
Time
Consumer
Outcome
Purchase New Product
Stick with Old Brand
Talk to Friends
Seek More Information
Nonpurchase
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.

8. Demographic and Life-Style Considerations
Gender Roles
Consumer Sophistication and Confidence
Poverty of Time
Component of Life-Style

9. Consumer Needs and Desires
In-Home Shopping
Online Shopping
Outshopping

10. Attitudes Toward Shopping
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

11. Cross-Shopping
More than One Retail Format
More than One Retailer

12. Consumer Decision Perspectives
What to Buy
Where to Buy

13. Consumer Decision Process
The Decision Process
Stimulus
Problem
Awareness
Information
Search
Evaluation of
Alternatives
Purchase
Post-
purchase
Behavior
(a)
(b)
Demographics
Life-Style
(a) Impact of Life-Style on Demographics
(b) Impact of Purchases on Life-Style

14. Purchase Act Influences
Retailer’s
Place of Purchase
Store
Home
Office/school
World Wide Web
Retailer’s
Purchase Terms
Price
Cash vs. Credit
Acceptance
Retailer’s
Good/Service
Availability
Stock on Hand
Delivery
Consumer’s
Purchase or
Nonpurchase

15. Types of Decisions
Extended Decision Making
Limited Decision Making
Routine Decision Making

16. Other Aspects Impulse Purchases Customer Loyalty Completely Unplanned
Partially Unplanned
Unplanned Substitution
Customer Loyalty

17. Consumer Decision Process
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

18. Environmental Factors
State of Economy
Rate of Inflation
Price Wars
New Retail Formats
Government Regulations
What else?

19. Retailer Actions
Mass Marketing
Concentrated Marketing
Differentiated Marketing

20. What You Should Know
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

21. Questions?
Questions?