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segmentation groups customers according to where they live. | geographic |
segmentation groups consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education. | demographic |
segmentation uses both geographic and demographic characteristics to classify consumers. | geodemographic |
refers to how people live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live. | lifestyle or psychographics |
can influence customers with the same demographics or lifestyle. | Buying situations |
segmentation groups customers seeking similar benefits. | Benefits |
What are the approaches for segmenting markets? | Geographic, GeoDemographic, Demographic, Lifestyle, Benefits, Buying situations |
The ease with which consumers can understand and use a new fashion. | complexity |
A pattern of buying both premium and low-priced merchandise or patronizing expensive, status-oriented retailers and price-oriented retailers. | cross-shopping |
) A pricing strategy that stresses continuity of retail prices at a level somewhere between the regular nonsale price and the deep-discount sale price of the retailer’s competitors. | everyday low pricing (EDLP) |
A buying decision made by customers on the spot after seeing the merchandise. | impulse buying |
The stage in the buying process in which a customer seeks additional information to satisfy a need. | information search |
A model of customer decision making based on the notion that customers see a retailer or a product as a collection of attributes or characteristics. The model can also be used for evaluating a retailer, product, or vendor. Using weighted average. | multiattribute attitude model |
The evaluation of merchandise or services after the customer has purchased and consumed them. | postpurchase evaluation |
A post-consumption evaluation of the degree to which a store or product meets or exceeds customer expectations. | satisfaction |
Customers who like a store so much that they actively share their positive experiences with friends and family. | Store advocates |
Market segment must be larger enough or its buying power significant to generate sufficient profits | Substantial |
Retailer can target promotions and other elements of the retail mix to customers in the segment | Reachable |
Retailer should know what to do to satisfy needs for the customers are in the segment | Actionable |
Retailer is able to determine which customers are in the segment | Identifiable |
What is the criteria for evaluating market segments | Actionable, Identifiable, Substantial, Reachable |
is the meaning, beliefs, morals, and values shared by most members of a society. | Culture |
is one or more people whom a person uses as a basis of comparison for beliefs, feelings and behaviors. | Reference groups |
What are the social factors that influence the buying decision process? | family, reference groups, culture |
committed to a specific brand, reluctant to switch to a different brand, may switch retailers to buy brand | brand loyalty |
committed to a specific retailer, reluctant to switch retailers | Store loyalty |
Habitual problem solving | purchase decision process involving little or no conscious effort |
purchase decision process involving moderate amount of effort and time | Limited problem solving |
consumers devote time and effort analyzing alternatives | Extended problem solving |
What are the types of buying decisions? | Extending problem solving, limited problem solving, habitual decision making. |
the set of alternatives the customer evaluates when making a selection | consideration set |
satisfied when purchases accomplish a specific task. Shopping needs to be easy, and effortless like Sam’s or a grocery store. | Utilitarian Needs |
satisfied when purchases accomplish a need for entertainment, emotional, and recreational experience as in department | Hedonic needs |
What kind of need may be satisfied by shopping and purchasing designer label merchandise?
1) When consumers go shopping for pleasure, they are seeking to satisfy their hedonic needs.
Is a purchase decision process involving a moderate amount of effort and time?
Limited problem solving is a purchase decision process involving a moderate amount of effort and time. Customers engage in this type of buying process when they have had some prior experience with the product or service and their risk is moderate.
Which item would most likely be purchased as an impulse item?
Clothing is the most popular category for impulse purchases. Fast fashion brands influence this by making appealing clothes affordable for many consumers. This past quarter, clothing was one of the most popular items to buy in general, with 47% of consumers having bought clothes in the last month.
Which of the following steps follows the recognition of a need?
A normal consumer purchase includes the recognition of needs and wants. Next comes the information search, followed by an evaluation of all the choices. Finally, the purchase happens, and post-purchase evaluation follows a purchase.