Chapter 7

Target Audience

The specific group of consumers that a retailer aims to appeal to through tailored products, marketing strategies, and store experiences.

Demographics

Objective data such as age, income, education, and household size used to identify potential customer segments.

Lifestyles

How consumers live, spend time, and money, including social circles, hobbies, and values, influencing product offerings and store environment.

Social Factors

Influence on buying decisions from culture, social class, reference groups, family life cycle, and time utilization.

Psychological Factors

Impact on consumer behavior from personality, attitudes, perceived risk, and status-consciousness.

Consumer Segments

Different groups like in-home shoppers, online shoppers, and outshoppers with varying preferences and behaviors.

In-home shoppers

Value convenience and prioritize time. Often affluent and well-educated.

Online shoppers

Utilize the internet for research and purchases. Convenience is key, and they tend to have higher incomes and education levels.

Outshoppers

Travel to shop, often for unique experiences or specialty items. Can vary in income and education levels.

Consumer Attitudes

Feelings towards shopping affecting behavior and shopping experience customization.

Shopping Behavior

The process customers go through when making a purchase.

Consumer Decision Process

Steps including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.

Cross-shopping

Visiting multiple stores during a shopping trip, either of the same type or different types.

Types of Consumer Decisions

Varying levels of consumer involvement in purchase decisions based on perceived risk and time constraints.

Impulse Purchases

Unplanned buying decisions influenced by factors like product placement and attractive displays.

Retailer Targeting Approaches

Marketing strategies like mass marketing, concentrated marketing, and differentiated marketing to target different customer segments.

Mass marketing

Targeting everyone (ex: Kohl's).

Concentrated marketing

Focusing on a specific customer segment (ex: Family Dollar).

Differentiated marketing

Offering different products or experiences to various customer segments (ex: Foot Locker).

External Influences

Environmental factors such as the economy, competition, and regulations impacting consumer shopping habits.