Targeting Customers N Gathering Ion
Targeting Customers N Gathering Ion
Targeting Customers N Gathering Ion
Gathering Information
Identifying and
Understanding Consumers
ü Why it is important for a retailer to properly
identify, understand and appeal to its
customers
ü Enumeration and description of consumer
demographics, lifestyle factors, and
needs and desires and to explain how
these concepts can applied to retailing
ü Examining consumer attitude towards
shopping and consumer shopping
behavior, including the consumer
decision process and its stages
ü Retailers actions based on target market
planning
Why it is Important for a Retailer
to Properly Identify, Understand
and Appeal to its Customers
ü The quality of a retail strategy
depends on how well a firm identifies
and understands its customer and
forms its strategy mix to appeal to
them.
ü This entails identifying consumer
characteristics, needs and attitudes;
recognizing how people makes
decisions, and devising the proper
target market plan.
ü It also means studying the
Enumeration and Description of
Consumer Demographics, Lifestyle
Factors, and Needs and Desires- and
To Explain How these Concepts can
Applied to Retailing
üConsumer demographics
üConsumer lifestyles
üRetailing implications of consumer
demographics and lifestyles
üConsumer profiles
üConsumer needs and desires
•
•
Consumer demographics
• Consumer demographics is consumer
data that is objective, quantifiable,
easily identifiable, and measurable.
Consumer Lifestyles
• Consumer life styles are based on Social
and Psychological factors, as given below:
Lif Lif
Social
Class
est Time
Utilizat Perceiv est Class
Consciousne
yle ion ed
Risk yle ss
Househ Family
old Life Purchase
Life Cycle Importance
Cycle
Retailing implications of
consumer demographics
and lifestyles
• Demographic and lifestyle
factors need to be considered
from several perspectives, as
given below:
– Gender Roles
– Consumer Sophistication and
Confidence
– Poverty of Time
– Component Life Style
Consumer profiles
• Considerable research has been
aimed at describing consumer
profiles in a way that is useful for
retailers.
– Shoppers at Wal-Mart and Kmart
– Shoppers at Target etc
Consumer needs and
desires
• Needs are person’s basic shopping
requirements
• Desiresare discretionary shopping
goals that have an impact on
attitudes and behavior.
• There are three particular market
that attract retailer attention
– In-Home Shoppers
– Online Shoppers
– Out shoppers
–
In-Home Shoppers
• Shopping is
discretionary, not
necessary.
• Convenience is
important
• Active, affluent, well-
educated.
• Self-confident,
younger,
adventuresome.
• Time scarcity is not a
Online Shoppers
Extended High
Routine Low
Impulse purchase and
customer loyalty
ü Completely unplanned
ü Partially unplanned
ü Unplanned substitution
overall target
Information Gathering and
Processing in Retailing
üHow information flows in a retail
distribution channel
üWhy retailers should avoid strategies
based on inadequate information
üRetail information system, its
components, and the recent
advances in such systems
üDescription of Marketing research
process
How Information Flows in a
Retail Distribution Channel
üInformation flows among
ØSupplier
ØRetailer and
ØConsumer
Informati Informati
on Information on
and the and the and the
Supplier Retailer Consumer
Suppliers Need To Know
Advantages
Disadvantages
Internal
External
Advantages
Disadvantages
• In-house or
outsource?
• Sampling method?
– Probability
– Nonprobability
• Data collection
method?
– Survey
– Observation
– Experiment
– Simulation
Survey Methods
v In-person v Disguised
v Over the v Nondisguised
telephone
v By mail
v Online
Mystery Shoppers