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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,7-,29,Chapter,7,Identifying and Understanding Consumers,RETAIL,MANAGEMENT:,A STRATEGIC,APPROACH,10th Edition,BERMAN EVANS,Chapter Objectives,To discuss why it is important for a retailer to properly identify, understand, and appeal to its customers,To enumerate and describe a number of consumer demographics, lifestyle factors, and needs and desires,and to explain how these concepts can be applied to retailing,Chapter Objectives (cont.),To examine consumer attitudes toward shopping and consumer shopping behavior, including the consumer decision process and its stages,To look at retailer actions based on target market planning,To note some of the environmental factors that affect consumer shopping,Figure 7-1: What Makes Retail Shoppers Tick,Demographics and Lifestyles,Demographics,consumer data that is objective, quantifiable, easily identifiable, measurable,Lifestyles,ways in which consumers and families live and spend time and spend money,Helpful Facts for Understanding U.S. Demographics,Typical household has an annual income of $45,000,Top 1/5 of households earn $85,000 or more,Lowest 1/5 of households earn under $18,000,High incomes lead to high,discretionary income,Helpful Facts for Understanding U.S. Demographics (cont.),There are 5 million more females than males,Three-fifths of females age 20 and older are in the labor force,Most U.S. employment is in services,More than 25% of all U.S. adults age 25 and older have at least graduated from a four-year college,Understanding Consumer Lifestyles: Social Factors,Lifestyle,Culture,Reference,Groups,Social,Class,Family,Life,Cycle,Time,Utilization,Household,Life,Cycle,Understanding Consumer Lifestyles: Psychological Factors,Lifestyle,Personality,Attitudes,Perceived,Risk,Purchase,Importance,Class,Consciousness,Figure 7-2: Perceived Risk and Consumers,Illustrations,Gender Roles,Consumer Sophistication and Confidence,Poverty of Time,Component Lifestyles,Figure 7-3: Blurring Gender Roles,Figure 7-4: King Kullen Addressing the Poverty of Time,Three Special Market Segments,In-Home Shoppers,Online Shoppers,Outshoppers,In-Home Shoppers,Shopping is discretionary, not necessary,Convenience is important,Active, affluent, well-educated,Self-confident, younger, adventuresome,Time scarcity is not a motivator,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,Outshoppers,Out-of-hometown shopping,Young, members of a large family, and new to the community,Income and education vary,They like to travel, enjoy fine food, are active, and read out-of-town newspapers,Attitudes Towards Shopping,Shopping enjoyment,Shopping time,Shifting feelings about retailing,Why people buy or not on a shopping trip,Attitudes by market segment,Attitudes toward private brands,Top Reasons for Leaving an Apparel Store Without Buying,Cannot find an appealing style,Cannot find the right size,Nothing fits,No sales help is available,Cannot get in and out of the store easily,Prices are too high,In-store experience is stressful,Cannot find a good value,Table 7-3: Where America Shops,Type of Retailer % Shopping At,Supermarkets 72,Discount department stores/supercenters 66,Drugstores 61,Convenience stores 59,Apparel stores 36,Home improvement centers 31,Membership clubs 29,Book/music stores 22,Consumer electronics stores 21,Cross-Shopping,Shopping for a product category at more than one retail format during the year,Visiting multiple retailers on one shopping trip,Figure 7-5: The Consumer Decision Process,Lifestyle,Demographics,Figure 7-6: Key Factors in the Purchase Act,Types of Consumer Decisions,High,RISK & TIME,Low,Extended,Limited,Routine,Types of Impulse Shopping,Completely unplanned,Partially unplanned,Unplanned substitution,Figure 7-7: Stimulating Impulse Purchases,Figure 7-9: Devising a Target Marketing Strategy,Possible Retailer Approaches,Mass Marketing,Kohls Department Stores,Concentrated Marketing,Family Dollar,Differentiated Marketing,Foot Locker,Environmental Factors and Consumers,State of the Economy,Rate of Inflation,Infrastructure for Shopping,Price Wars,Emergence of New Retail Formats,People Working at Home,Regulations on Shopping,Changing Social Values and Norms,
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