Podcast
Questions and Answers
What does 'identifiable' imply about a retailer's customers?
What does 'identifiable' imply about a retailer's customers?
- Retailers can determine the segment's size and target consumers. (correct)
- Retailers must avoid any demographic analysis.
- Customers cannot be segmented.
- Customers have very similar preferences.
Which of the following is likely to be found in a store located in a high-income neighborhood?
Which of the following is likely to be found in a store located in a high-income neighborhood?
- Prepared and gourmet foods (correct)
- Snack foods
- Generic brand items
- Fast food products
What occurs when there is too much overlap between market segments?
What occurs when there is too much overlap between market segments?
- Marketing strategies can be generalized.
- Distinct marketing strategies are essential.
- Consumer preferences are more diverse.
- Segments may become indistinguishable. (correct)
Which stage in the decision process indicates a customer is actively considering a purchase?
Which stage in the decision process indicates a customer is actively considering a purchase?
What type of consumer is categorized as a 'laggard'?
What type of consumer is categorized as a 'laggard'?
What does a 'heavy' usage rate signify about a consumer?
What does a 'heavy' usage rate signify about a consumer?
Which benefit sought is associated with consumers prioritizing quality over cost?
Which benefit sought is associated with consumers prioritizing quality over cost?
Which factor plays a role in defining a person's social class?
Which factor plays a role in defining a person's social class?
What is the term for the behavior of buying both premium and low-priced merchandise?
What is the term for the behavior of buying both premium and low-priced merchandise?
Which approach is NOT typically used by retailers to stimulate need recognition?
Which approach is NOT typically used by retailers to stimulate need recognition?
What is the first step before a customer is motivated to make a purchase?
What is the first step before a customer is motivated to make a purchase?
Which source of information includes past experiences and memories?
Which source of information includes past experiences and memories?
During her search, where did Eva begin looking for information on suits?
During her search, where did Eva begin looking for information on suits?
Which activity is an example of stimulating need recognition in a retail context?
Which activity is an example of stimulating need recognition in a retail context?
What types of sources do customers utilize for external information?
What types of sources do customers utilize for external information?
What method did Melrose Jewelers use to engage customers on their Facebook page?
What method did Melrose Jewelers use to engage customers on their Facebook page?
What is a limitation of using lifestyle segmentation compared to demographics?
What is a limitation of using lifestyle segmentation compared to demographics?
What is often used alongside lifestyle segmentation for effective market segmentation?
What is often used alongside lifestyle segmentation for effective market segmentation?
In what situation is convenience more valued than assortment, according to the multiattribute attitude model?
In what situation is convenience more valued than assortment, according to the multiattribute attitude model?
Why is buying situation segmentation considered highly actionable for marketers?
Why is buying situation segmentation considered highly actionable for marketers?
Which method is used to identify VALS segments in marketing?
Which method is used to identify VALS segments in marketing?
How can retailers assess the size of a market segment?
How can retailers assess the size of a market segment?
What type of shopping behavior may require different considerations than lifestyle segmentation?
What type of shopping behavior may require different considerations than lifestyle segmentation?
What is an example of how demographics can aid in market segmentation for a company like Nike?
What is an example of how demographics can aid in market segmentation for a company like Nike?
Which characteristic has the highest importance weight for the young single woman?
Which characteristic has the highest importance weight for the young single woman?
What is the overall evaluation score for supermarkets when considering parents with four children?
What is the overall evaluation score for supermarkets when considering parents with four children?
Which retailer characteristic is rated the lowest by the parent with four children?
Which retailer characteristic is rated the lowest by the parent with four children?
For which retailer type does the availability of product information have a performance belief of 4?
For which retailer type does the availability of product information have a performance belief of 4?
Which characteristic has the highest overall weight among the examined categories for the Internet Grocer?
Which characteristic has the highest overall weight among the examined categories for the Internet Grocer?
How can retailers influence customer shopping behaviors effectively?
How can retailers influence customer shopping behaviors effectively?
Among the characteristics evaluated, which has the lowest importance weight for the parent with four children?
Among the characteristics evaluated, which has the lowest importance weight for the parent with four children?
Which aggregate evaluation score suggests that supercenters are preferred by young single women?
Which aggregate evaluation score suggests that supercenters are preferred by young single women?
What characterizes the extended problem-solving process in customer buying decisions?
What characterizes the extended problem-solving process in customer buying decisions?
Which type of buying process is defined by minimal effort and typically occurs habitually?
Which type of buying process is defined by minimal effort and typically occurs habitually?
What type of risk is associated with the potential impact of a purchase on a person's health or safety?
What type of risk is associated with the potential impact of a purchase on a person's health or safety?
In which scenario is limited problem solving likely to occur?
In which scenario is limited problem solving likely to occur?
What motivates customers to engage in impulse buying?
What motivates customers to engage in impulse buying?
Which of the following best describes customer satisfaction?
Which of the following best describes customer satisfaction?
How does risk affect the length of the buying process?
How does risk affect the length of the buying process?
What is a key factor contributing to habitual decision making?
What is a key factor contributing to habitual decision making?
Study Notes
Cross-Shopping
- Customers patronize both premium and low-priced retailers, or high-end and price-oriented retailers.
Stimulating Need Recognition
- Retailers use various strategies to stimulate unmet customer needs.
- These strategies include advertising, emails, direct mail, publicity, and special events.
- Retailers also use social media campaigns and visual merchandising to stimulate need recognition.
Information Search
- Customers conduct research on retailers, channels, or products to meet their identified needs.
- The search process can involve online research, consulting friends, visiting stores, and browsing fashion blogs.
Sources of Information
- Customers use both internal and external sources of information.
- Internal sources rely on the customer's memory and past experiences.
- External sources include information from websites (manufacturers, retailers), search engines, traditional media, social media, friends, and product demonstrations.
Evaluating Retailers
- The Multiattribute Attitude Model helps retailers understand how customers choose retailers or channels.
- The model considers the customer's evaluation of several retailer characteristics and their importance weights.
Implications for Retailers
- The model helps retailers identify customer preferences and choose appropriate marketing tactics.
- To effectively attract customers, retailers need to understand:
- Alternative retailers considered by customers.
- Retailer characteristics important to customers during evaluation.
- Customer ratings of retailers on these characteristics.
- Importance weights assigned by customers to each characteristic.
Market Segmentation
- Identifiable: Customers within a segment can be easily identified. This allows retailers to determine segment size and target their marketing efforts.
- Demographics: Used to identify customer segments based on factors like age, income, occupation, and education. These factors influence consumer behavior and purchasing decisions.
- Lifestyle: Customers with similar demographics may have different lifestyles, affecting their purchasing choices. The differences can be captured using lifestyle segmentation.
- Psychographics: Includes factors like values, attitudes, interests, and personality traits. This information can provide insights into consumer behavior and preferences.
- VALS: A psychographic segmentation tool that classifies consumers based on their values, attitudes, and lifestyles.
- Buying Situation Segmentation: Considers different buying situations, which influence purchasing decisions.
- Fill-in Shopping: Focuses on convenience and nearby retailers.
- Weekly Shopping: Considers price, assortment, and overall value.
Post-Purchase Evaluation
- Satisfaction occurs when the customer's experience meets or exceeds expectations.
- Unsatisfactory experiences can lead to complaints, patronage of other stores, and switching brands.
Types of Buying Processes
- The complexity of the buying process depends on the level of importance and risk associated with the purchase.
- Extended Problem Solving: involves extensive research and evaluation when the purchase carries high risk and uncertainty.
- Limited Problem Solving: requires moderate effort when customers have prior experience with the product and the risk is moderate.
- Habitual Decision Making: involves little conscious effort when the customer has established preferences or routines.
Extended Problem Solving
- Customers spend more time and effort on information search and evaluating alternatives.
- Factors like financial, physical, and social risks influence extended problem solving.
Limited Problem Solving
- Customers have some prior experience with the product and the risk is moderate.
- Impulse buying is a type of limited problem solving, driven by unplanned purchases.
Habitual Decision Making
- Involves minimal conscious effort as customers rely on established preferences or routines.
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Description
Test your knowledge on retail marketing strategies, including cross-shopping behavior and need recognition. This quiz covers how retailers stimulate customer needs and the information search process customers perform. Explore the internal and external sources of information that influence customer decisions.
