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CHAPTER OUTLINE I. Demographics are a widely used tool for analyzing and predicting consumer behavior. A. Demographics are the: 1. Size 2. Structure 3. Distribution of a population B. Demographic analysis is used in two ways: 1. Market segment descriptions 2. Trend analysis C. Consumer analysts use demographics to: 1. Predict changes in demand 2. Predict consumption of specific products and services D. Demographic analysis provides information for social policy related to macromarketing, the aggregate performance of marketing in society. E. Demographics can be used to predict industrial demand because industrial demand is derived from consumer demand. II. The changing structure of consumer markets requires companies to plan effectively. A. Planning requires information about the four main components of markets 1. People with needs 2. Ability to buy 3. Willingness to buy 4. Authority to buy B. People are the foundation of markets and marketers study people behavior through such techniques as economic demographics and population trends by analyzing: 1. Births 2. Deaths 3. Net migration C. To determine future populations, we look at: 1. Birth rate 2. Fertility rate
The changing age distribution in the United States affects consumer behavior and effective marketing because various age segments may increase or decline: A. salaries. Suburbs 3. Cities 2. but demand new products and new marketing strategies. Exurbs – areas beyond the suburbs 4. Population momentum 6. Total fertility rate 4. Baby boomers and muppies are growing. Wealth – a family’s new worth or assets B. Metropolitan statistical areas (MSA) 5. V. Consolidated metropolitan statistical areas (CMSA) B. Primary metropolitan statistical areas (PMSA) 6. From the above we can try to predict most likely population scenarios. Economic Resources A.3. The upmarket – “supraffluents” . Future fertility scenarios 7. How many people will immigrate? E. Children as consumers may decline. Natural increases in population 5. The “young-again” market is a rapid growth segment. Other questions we explore are: 1. Income – money from wages. The rise of teenagers is expected to continue. D. IV. internet. B. New market segments for marketers to target are: 1. The aging population is creating new and profitable market opportunities. E. C. Ethnic variations D. Consumer confidence – what people think will happen in the future 3. What causes babies? 8. and welfare payments 2. Young adults are expected to increase. Economic resources must be monitored and consist of: 1. F. How long will people live? 2. III. Markets can be segmented geographically for analysis into these units: 1. Geodemography is the study of the changing geography of demand A. Marketers must monitor which states are growing and which are declining.
Promising income growth rates 4. Simulate product trial c. Growth in economic resources 3. The Pacific rim provides attractive market opportunities in: 1. Eastern Europe 1. Japan – highest per capita consumption of any country in the world D. Increases in life expectancy B. Growth in population 2.2. Consumer behavior factors in developing countries: 1. Australia – well developed infrastructure and room to grow 4. Marketers must: a. High population and growth of young consumers 3. Growing acceptance of American culture 5. Increasing interest in Central and South America because of NAFT 2. High birth rates and strong population growth 2. education and a growing middle-class 2. Teach consumers about products and brands b. Explore opportunities for profit-tourism C. The most attractive global markets have: 1. Rural 5. Some substantial market segments with high income E. Low annual income 3. 3. The down market – mid and lower income ranges The poverty market VI. Fast-growth markets VII. Large numbers of babies and children with lower life expectancy 4. China – pent-up demand for 1-2 billion consumers but government is a problem 5. Global Market Demographics and Attractiveness A. Global Market Opportunities for Marketers are: A. Natural increases 4. India – excellent infrastructure. Recently open for global trade . South Korea – outstanding economic growth 3. Slow-growth or no-growth markets B. Dependent on other countries for food and education 6. Latin America 1.
Germany is the dominant market force G. money. Values C. The ID b. 85% of Europeans shop every day F. Personality and Consumer Behavior A. The SUPEREGO 2. Lifestyles IX.S. A market larger than the U. Canada 1. making TV advertising viable 4. Predicting buyer behavior 1.Preferences similar to western consumers TV viewing is the most frequent leisure. 2. 2. Personality data with information about individual’s social and economic conditions 2. and goods across borders 4. Consumer analysts rely on three major theories to explain personality: 1. A common currency – the euro 3. Psychological theory a.time activity. Trait-factor theory has been the primary basis of marketing personality research. Socio-Psychological theory 3. 3. National identity and cultures have not disappeared 5. Personality has only been able to explain about 10% of variance in behavior 3. The European single market – The European Union (EU) 1. The Influence of Individual Differences of Consumer Behavior include: A. Because of limited in-home storage. Relating personality to stages of the decision process b. but the results are difficult to use. which influences how the person responds to their environment. The EGO c. 3. High volume distribution circles create efficient supply to Canadian markets VIII. This failure has provoked the development of other approaches: a. . B. The world’s largest country geographically 2. Personality is an individual’s unique psychological makeup. Free movement of people. Personality B.S. 80% of Canadians live within 200 kilometers of the U. Trait-Factor theory C.
Use values and psychographics X. Action oriented E. Experiencers . Provides quantitative measures with large samples 2. B. In-depth understanding of existing segments 2. “Is this product for me?” D. and are influenced by social values and personal values. Psychographics is often interchanged with AIO measures C. Strivers 6. The Schwartz Value Scale (SVS) is based on the premise that values are transsituational goals that serve the interest of individuals or groups and express one of ten universal motivations or value types. Psychographics measures lifestyles and: 1. Values help explain how consumers answer the question. The Rekeach Value Scale (RVS) is based on the people’s goals and the wars of behaving to obtains goals B. Achievers 5. XI. Lifestyle describes patterns in which people live and spend time and money. Provides qualitative research techniques for focus groups or in-depth interviews 3. Lifestyle concepts and measurement provide a more contemporary understanding of consumer behavior. Possibly defining new segments D. Laddering helps understand how values determine market demand. Personal values represent consumer beliefs about life and acceptable behavior. VALS is widely used in lifestyle marketing by classifying consumers by their self-orientation: 1. C. A. A. interests. Market segmentation can be enhanced through psychological studies. Fulfillers 3. Principle oriented 2. Believers 4.c. reflecting people’s activities. and opinions (AIO’S) and demographic variables. Status oriented 3. Actualizers 2. VALS2 defines eight lifestyle categories: 1. 1.
H. . The alternative to VALS is the List of VALUES (LOV). Multiple measures of individual behavior will continue to provide in-depth understanding of consumer behavior. and when LOV was used with demographic data. Strugglers F. G. it was a better predictor of consumer behavior than VALS. Makers 8. VALS and other approaches have been successfully used in foreign countries to understand consumer behavior in foreign markets.7.
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