Chapter 7

Retail Management: A Strategic
Approach
Thirteenth Edition
Chapter 7
Identifying And
Understanding
Consumers
Copyright © 2018, 2014, 2012 by Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
7.1 To discuss why it is important for a retailer to properly identify,
understand, and appeal to its customers
7.2 To enumerate and describe a number of consumer
demographics, lifestyle factors, needs and desires – and to
explain how these concepts can be applied to retailing
7.3 To examine consumer attitudes toward shopping and
consumer shopping behavior, including the consumer
decision process and its stages
7.4 To look at retailer actions based on target market planning
7.5 To note some of the environmental factors that affect
consumer shopping

Figure 7.2 What Makes Retail Shoppers

Tick
Consumer Demographics and Lifestyles
Consumer Demographics Consumer Lifestyles
• objective, quantifiable, • ways in which individual
easily identifiable, and consumers and families
measurable population (households) live and
data spend time and money

Consumer Demographics
• Consumers, both as groups and as individuals, can be identified
by such demographics as gender, age, population growth rate,
life expectancy, literary, language spoken, household size,
marital and family status, income, retail sales, mobility, place of
residence, occupation, education, and ethnic/racial background.
Understanding Consumer Lifestyles:
Social Factors
• Lifestyle
– Culture
– Reference Groups
– Social Class
– Family Life Cycle
– Household Life Cycle
– Time Utilization

Understanding Consumer Lifestyles:

Psychological Factors
• Lifestyle
– Personality
– Class Consciousness
– Attitudes (opinions)
– Purchase Importance
– Perceived Risk

Retailer Strategies to Reduce Perceived

Risk by Shoppers (1 of 2)
• Functional– product usage testing by retailer; especially
private labels. Double check returned “B” goods. Simulate
wear for new goods.
• Physical- safety testing, reduce salt and fat in food
products
• Financial- money back guarantee and exchange privileges

Retailer Strategies to Reduce Perceived

Risk by Shoppers (2 of 2)
• Social— co-branding of private label products with major
high-quality national brands (Kirkland by Starbucks)
• Psychological– showing empathy for consumer
• Time- double money back guarantee; auto dealers picking
and returning recalled cars

Retailing Implications of Demographics

and Lifestyles
• Gender Roles
• Consumer Sophistication and Confidence
• Poverty of Time
• Component Lifestyles

Consumer Needs and Desires

• Needs: a person’s basic shopping requirements consistent
with his or her present demographics and lifestyles
• Desires: discretionary shopping goals that affect attitudes
and behaviour

Three Special Market Segments

• In-Home Shoppers
• Online/mobile Shoppers
• Out shoppers

Attitudes Towards Shopping (1 of 2)

• Level of shopping enjoyment
• Shopping time
• Cautious Optimism and Disparity in Wealth Effect

Attitudes Towards Shopping (2 of 2)

• Shifting feelings about retailing
• Attitudes by market segment
‒ Involved
‒ Spontaneous
‒ Apathetic
• Attitudes toward private brands

Top Reasons for Leaving an Apparel

Store Without Buying
• Change in shopping goals
• Deficiencies in merchandise assortment (cannot find an
appealing style, right size, fit)
• Lack of salesperson support and unsatisfactory in-store
experience
• Cannot find a good value

Cross-Shopping
• Shopping for a product category at more than one retail
format during the year
• Visiting multiple retailers on one shopping trip

The Consumer Decision Process
Types of Consumer Decisions
Types of Impulse Shopping
• Completely unplanned
• Partially unplanned
• Unplanned substitution
• Retail atmospherics
• Enhanced service mix – related + unrelated to core

Retailer Actions
• Mass Marketing
– Kohl’s Department Stores
• Concentrated Marketing
– Family Dollar
• Differentiated Marketing
– Foot Locker

Environmental Factors Affecting

Consumers
• Several environmental factors influence shopping attitudes and
behaviour, including:
• Rate of inflation
• State of economy
• Emergence of new technologies
• Trend toward more people WFH
• Evolving societal values and norms

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Retail Management: A Strategic

Figure 7.2 What Makes Retail Shoppers

Understanding Consumer Lifestyles:

Retailer Strategies to Reduce Perceived

Retailer Strategies to Reduce Perceived

Retailing Implications of Demographics

Consumer Needs and Desires

Three Special Market Segments

Attitudes Towards Shopping (1 of 2)

Attitudes Towards Shopping (2 of 2)

Top Reasons for Leaving an Apparel

The Consumer Decision Process

Environmental Factors Affecting

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