CHAPTER 8:

SERVING THE CONSUMER

Charry C. Maglente
MM - 31
 THE CHANGING CONSUMER MARKET

The consumer market is made up of people

with needs to satisfy and money to spend.
Everybody is part of a consumer market because
everybody must spend money on certain things.
 POPULATION
• A population is a distinct group of individuals,
whether that group comprises a nation or a
group of people with a common
characteristic.
• In the last 50 years the population of the
United States has grown enormously.
CHANGES IN PROPORTION OF AGE GROUPS

Projected changes in the population's age

distribution during the latter 1970s
and1980swill affect the American retailer,
the effects of the "baby boom," or the large
Increase in births in the years following
World War II, will no longer be felt.
GROWTH PATTERNS OF METROPOLITAN AREAS

• A population shift known as "he exodus of the middle

class" seems to be underway in many cities.
• To describe the phenomenon of the central city and its
surrounding suburbs, the federal government uses the
term Standard Metropolitan Statistical Area (SMSA).
• The shift in the metropolitan-suburban population is
significant for both metropolitan and suburban retailers.
CHANGES IN SIZE AND NUMBER OF HOUSEHOLD

Every time an individual or a family sets up a new.

household, retailers of real estate, and household
appliances and equipment have another potential
customer. Many retailers in these areas direct their
advertising and promotion specifically to newly
married couples, since their potential for being
customers is great.
THANK YOU!
MOBILITY OF
POPULATION
LANDICHO, MELVIN V.
MM-31
Mobility refers to the movement of people from place to
place, or job to job, or social class to social class. Population
mobility refers to the geographic movement of people where
there has been a change in the place of usual residence. In
this chapter it is also referred to as internal migration within
Australia at both the intrastate and interstate levels. The
movement of people at smaller geographic levels is an
important factor in population change at the local level and is
best measured using census data which becomes available
every five years.
INCOME AND EXPENDITURE PATTERNS

• Patterns of spending are examined in a variety of areas

within three domains giving, recreation, and essentials.
Consistent income group differences exist in
expenditure patterns across virtually every area within
the three domains.
 THE 2 KINDS OF INCOME
PERSONAL INCOME
Personal income refers to all income collectively received by all individuals
or households in a country. Personal income includes compensation from a
number of sources, including salaries, wages, and bonuses received from
employment or self-employment, dividends and distributions received from
investments, rental receipts from real estate investments, and profit sharing
from businesses.
DISPOSABLE INCOME

Disposable income and discretionary income are key economic indicators

used to gauge companies' and individuals' financial stability. Individuals and
businesses earn income money for providing goods or services or investing
capital in assets like individual retirement accounts. Other sources of income
include pensions or Social Security.
Increased Emphasis on Education 
It helps a person to get knowledge and improve confidence
level all through the life. It plays a great role in our career
growth as well as in the personal growth. It has no
limitation; people of any age group can get education
anytime. It helps us to determine about good and bad
things. 
Consumer buyer motives 
Buying motives of a buyer refers to the influences or motivations
forces which determine his buying. In other words, a buying
motive is the inner feelings, urge, instinct, drive, desire, stimulus,
thoughts, or emotion that makes a buyer buy a certain product or
service to satisfy his needs. 

LLENA, CHRISTIAN DENIS E.​

MM-31
Why People Buy?
People buy products or services based on emotional needs or
wants, and then justify their purchase logically.
Human needs
Human needs are commonly used to refer to the drivers of
peoples’ actions, the motives behind human behavior. Other uses
of the concept include needs as instruments to achieve a certain
goal and needs as societal requirements to flourish or experience
a good life. Needs as motives imply that all human actions can be
understood as originating in the quest for satisfying or actualizing
needs. Needs as societal requirements concern what is necessary
for people to avoid serious harm and participate in their society,
whether or not they are mobilized by them. Needs as
requirements to achieve a certain outcome like fulfillment,
happiness, or satisfaction.
 LLENA, CHRISTIAN DENIS E.
MM-31

LLENA, CHRISTIAN DENIS E.​​

MM-31
1. Physiological needs: The first of the id-driven lower needs
on Maslow's hierarchy are physiological needs. These most
basic human survival needs include food and water,
sufficient rest, clothing and shelter, overall health, and
reproduction. Maslow states that these basic physiological
needs must be addressed before humans move on to the
next level of fulfillment.

2.Safety needs: Next among the lower-level needs is safety.

Safety needs include protection from violence and theft,
emotional stability and well-being, health security, and
financial security.
3. Love and belonging needs: The social needs on the third
level of Maslow’s hierarchy relate to human interaction and
are the last of the so-called lower needs. Among these
needs are friendships and family bonds—both with
biological family (parents, siblings, children) and chosen
family (spouses and partners). Physical and emotional
intimacy ranging from sexual relationships to intimate
emotional bonds are important to achieving a feeling of
elevated kinship. Additionally, membership in social groups
contributes to meeting this need, from belonging to a team
of coworkers to forging an identity in a union, club, or group
of hobbyists.
4. Esteem needs: The higher needs, beginning with
esteem, are ego-driven needs. The primary elements of
esteem are self-respect (the belief that you are valuable
and deserving of dignity) and self-esteem (confidence in
your potential for personal growth and
accomplishments). Maslow specifically notes that self-
esteem can be broken into two types: esteem which is
based on respect and acknowledgment from others,
and esteem which is based on your own self-
assessment. Self-confidence and independence stem
from this latter type of self-esteem.
5. Self-actualization needs: Self-actualization describes
the fulfillment of your full potential as a person.
Sometimes called self-fulfillment needs, self-
actualization needs occupy the highest spot-on
Maslow's pyramid. Self-actualization needs include
education, skill development—the refining of talents in
areas such as music, athletics, design, cooking, and
gardening—caring for others, and broader goals like
learning a new language, traveling to new places, and
winning awards.
Motivation in life cycle
Motivation cycle is a transition of states within an organism
that propels the organism toward the satisfaction of a
particular need, where motivation itself is considered a
hypothesized state.

Rational and emotional motives

Rational Motives imply that consumers select goals based
on totally objective criteria such as size, weight, price, or
miles per gallon. Emotional Motives imply the selection of
goals according to personal or subjective criteria (pride, fear,
affection, or status).
THANKS FOR
ATTENTION
Patronag e
Buying
Motives
Chapter 8: Serving the
Customer
 Patronage buying motives refer to those
considerations or reasons, which prompt a
buyer to buy the product wanted by him from
a particular shop in preference to other shops.
 Patronage buying motives also may be sub-divided into
two groups:

A. Emotional Patronage Buying Motives

When a buyer patronises a shop (i.e. purchases the things

required by him from a particular shop) without applying his
mind or without reasoning, he is said to have been influenced by
emotional patronage buying motives.
Emotional patronage buying motives
include the following:
Appearance of the shop

Display of goods in the shop

Recommendation of others

Imitation

Prestige

Habit
B. Rational Patronage Buying Motives:

When a buyer patronises a shop after careful consideration (i.e.

after much logical reasoning and careful thinking) he is said to have
been influenced by rational patronage buying motives.
Rational patronage buying motives include the
following:
Convenience
Low price charged by the shop
Credit facilities offered Services
offered
Efficiency of salesmen
Wide choice Treatment
Reputation of the shop
Helping
make
Decisions a
Team
Process
Chapter 8: Serving the
Customer
 Helping make Decisions a Team Process

Helping consumers make decisions is always a team process. Everybody

in a company must be involved in this effort. The efficient firm is manned by
personnel who are always conscious of its purposes and who perform their
assigned roles effectively and efficiently. Employees who meet the customers are
helpful and courteous. Employees who work behind the scenes do their best to
create an atmosphere favorable to persuading customer to buy
 Helping make Decisions a Team Process
The retail firm does many things to attract customers and build sales. A
pealing to customer motives is involved in all phases of merchandising, including
advertising, display, buying, market research, and all forms of personal selling.
How and
When People
Buy?
 How and When People Buy?

Studies have shown that the identity of the family purchasing agent
is constantly changing. This is probably because the roles traditionally
assigned to husband and wife and male and female are being challenged.
Nevertheless, knowing who usually buy's a product influences a firm 's
marketing and merchandising policies, for it help retailers to make wise
decisions about kind of services to provide
WHO MAKES THE
PURCHASING DECISION?
WHO MAKES THE PURCHASING
DECISION?
Most individuals make their own
purchasing decisions. However, most
family purchasing decisions are made by one
or family purchasing agents
WHAT
PEOPLE
BUY?
 WHAT PEOPLE BUY?

In studying what people buy retailers have found it to separate products

into the following three divisions based on consumer buying habit ;
1. Convenience goods
2. Shopping goods
3. Specialty goods
How People Buy?
Other information retailers find helpful
relates to the manner in which people decide to
make a purchase. Think about your own buying
behavior to see how other people make up their
miNds to buy various products and services.
Buying
Behavior
Impulse buying
 When People Buy?
Finally, retailer must be alert to how
customer preferences and habits are
affected by the time of day, the day of the
week, and the season .The successful retailer is
one who is available to serve his customer
when they are ready to buy.
 TRENDS IN PURHCASING
DECISIONS?
1.-Men have a greater tendency to become involved in purchasing if the product is technically
complex
2.-Younger husbands and husbands in higher-income brackets are more involved in the family
purchasing process than are older husbands or husbands in middle- and lower- income brackets.
3. -More men are involved in purchasing furniture than ever before.
4.-A greater percentage of teen-agers now buy and own items such TV sets, tape recorders,
cameras, watches, and outboard motor than ever before.
5. -Teen-agers spending far outweighs their numerical strength in the purchase if the
many items. Teen-age boys, for example, are less than 15 percents of the male population, buy
more than 40 percent of all sportswear sold, while teen-age girls account for the purchase of a
third of the nations cosmetics output. Also, beyond their own purchases, teen-agers influence at
least $35 billions of adult spending.
THANK YOU!!!