CHAPTER 7:

IDENTIFYING AND
UNDERSTANDING
CONSUMERS

1
What Makes Retail Shoppers Tick

7-4
 Demographics and Lifestyles

• Demographics
 consumer data that
is objective,
quantifiable, easily
identifiable, and
measurable
• Lifestyles
• ways in which
consumers and
families live and
spend time/money

©2013 Pearson Education Publishing as Prentice Hall 7-5

 Reference
Culture
Groups

Social Time
Class
Lifestyle Utilization

Household Family
Life Life
Cycle Cycle

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 Personality Attitudes

Perceived Class
Risk
Lifestyle Consciousness

Purchase
Importance

©2013 Pearson Education Publishing as Prentice Hall 7-8

 Perceived Risk and Consumers

©2013 Pearson Education Publishing as Prentice Hall 7-9

 Retailer Strategies to Reduce
Perceived Risk by Shoppers
• 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

©2013 Pearson Education Publishing as Prentice Hall 7-10

 Retailer Strategies to Reduce
Perceived Risk by Shoppers (cont)
• 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; Saturn dealers picking
and returning recalled cars

©2013 Pearson Education Publishing as Prentice Hall 7-11

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

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 Three Special Market Segments
• In-Home Shoppers
• Online Shoppers
• Outshoppers

©2013 Pearson Education Publishing as Prentice Hall 7-13

 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

©2013 Pearson Education Publishing as Prentice Hall 7-14

 Attitudes Towards Shopping
• Level of 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

©2013 Pearson Education Publishing as Prentice Hall 7-15

 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

©2013 Pearson Education Publishing as Prentice Hall 7-16

 Global Shopping Attitudes and Behavior

Why Consumers in 51 Countries

Shop at a Specific Retailer (% saying highly influential):

Good value for the money 61

Lowest prices 58
Convenient location 57
Great sales and promotions 55
Desired products in stock 54
Organized store layout (ease of shopping) 42
Friendly, knowledgeable employees 40
Fast checkout 38
Customer loyalty program 28

©2013 Pearson Education Publishing as Prentice Hall 7-17

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

18
©2013 Pearson Education Publishing as Prentice Hall 7-18
 The Consumer Decision
Process

©2013 Pearson Education Publishing as Prentice Hall 7-19

 Key Factors in the Purchase Act

©2013 Pearson Education Publishing as Prentice Hall 7-20

 Types of Consumer Decisions

Extended High

Limited RISK & TIME

Routine Low

©2013 Pearson Education Publishing as Prentice Hall 7-21

 Types of Impulse Shopping

• Completely unplanned
• Partially unplanned
• Unplanned substitution

©2013 Pearson Education Publishing as Prentice Hall 7-22

 Devising a Target Marketing Strategy

©2013 Pearson Education Publishing as Prentice Hall 7-23