Retail CustomersLearning ObjectivesRetail MixCustomer SatisfactionRetail GrowthConsumer SpendingCustomer ServicesMarket SegmentationCurrent Trends Affect the Way theQuestion to PonderPopulation TrendsSlide 12Number of Births by YearWhere did the term Melting Pot originate?Boomers, Xers and YersTexas Consumers’ Percentage of NationalSlide 17Geographic TrendsSlide 19Generation Gap in the Information AgeGlobal RetailingSlide 22Social TrendsU.S. Education LevelsMarriageMakeup of American HouseholdsSlide 27Changing Nature of workSlide 29Economic Trends2000 Median Household incomeShare of Aggregate Income Received by Each Fifth and the Top 5 Percent of U.S. Households, 1970-2000Changing Purchasing Habits of AmericanSlide 34Spenders and Savers as a % of TotalThe % of Women Age 16 and Over in theGrowth in Consumer CreditSquare Feet of Retail Space Per CapitaConsumer Behavior ModelSlide 40Consumer Shopping/ Purchase ModelSlide 42Slide 43Degrees of Consumer Problem Solving in Shopping/PurchasingSlide 45Slide 46Slide 47Slide 48Slide 49Slide 501Retail CustomersRetail CustomersChapter 3Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.2Learning ObjectivesLearning Objectives• Explain the importance of population trends to the retail manager.• List the social trends that retail managers should regularly monitor and describe their impact on retailing.• Describe the changing economic trends and their effect on retailing.• Discuss the consumer shopping/purchasing model, including the key stages in the shopping/purchasing process.3Retail MixRetail Mix•The combination of merchandise, assortment, price, promotion, customer service, and store layout that best serves the segments targeted by the retailer.Introduction4Customer SatisfactionCustomer Satisfaction•Occurs when the total shopping experience of the customer has been met or exceeded.Introduction5Retail GrowthRetail GrowthStarbucks Coffee has experienced explosive growth over the last five years and thus has had to put considerable effort into planning for and recruiting human resources at all levels in the organization. In fact, Starbucks was the first American retailer to provide its part-time employees (65 percent of its workforce) full health care benefits and stock options.Introduction6Consumer SpendingConsumer SpendingExhibit 3.17Customer ServicesCustomer ServicesInclude the activities the retailer performs that influence (1) the ease with which a potential customer can shop or learn about the store’s offering, (2) the ease with which a transaction can be completed once the customer attempts to make a purchase, and (3) the customer’s satisfaction with the purchase.Introduction8Market SegmentationMarket SegmentationMarket SegmentationIs the dividing of a heterogeneous consumer population into smaller, more homogeneous groups based on their characteristics.Introduction9Current Trends Affect the Way theCurrent Trends Affect the Way theExhibit 3.2PopulationTrendsSocietalTrendsEconomicTrendsConsumer Shopping/Purchasing ModelConsumer Behaves10Question to PonderQuestion to PonderGiven the wide variety of population, social, and economic trends, and the importance to retailers of targeting specific consumer groups, what segments provide the greatest opportunities for new retailers today?11Population TrendsPopulation Trends• Population Growth• Age Distribution• Geographic TrendsLO 112Population TrendsPopulation Trends• Population VariablesInclude population growth trends, age distributions, and geographic trends.LO 113Number of Births by YearNumber of Births by YearLO 114Where did the term Melting Pot originate?Where did the term Melting Pot originate?LO 1The Melting Pot is the name of a play about immigrants written by Israel Zangwell. In theplay, which opened in Washington D.C. in 1908, one of the characters declared: “America is…the great melting pot where all the races of Europe are melting and reforming Germans and Frenchman, Irishmen and Englishmen, Jews and Russians into the crucible he will be the fusion of all races, the coming superman.”15Boomers, Xers and YersBoomers, Xers and YersLO 1: Exhibit 3.316Texas Consumers’ Percentage of NationalTexas Consumers’ Percentage of NationalLO 1: Exhibit 3.4Average Usage17Texas Consumers’ Percentage of NationalTexas Consumers’ Percentage of NationalLO 1: Exhibit 3.4Average Usage18Geographic TrendsGeographic TrendsMicromarketing MerchandisingIs the tailoring of merchandise in each store to the preferences of its neighborhood.LO 119Geographic TrendsGeographic TrendsMetropolitan Statistical AreasAre freestanding urban areas with populationd in excess of 50,000.LO 120Generation Gap in the Information AgeGeneration Gap in the Information AgeLO 1Those who say...Under 30Age 50or overChange brings exciting opportunitiesThey want to be their own bossThey own a computerThey’ve used E-mailThey have Internet accessSocial Security will not be available to themMedicare will not pay any of their health expensesTechnology brings more confusion and complications than it does exciting opportunitiesIt is difficult to use computers78%72%85%15%52%54%23%18%58%58%46%40%28%21%14% 6%38%53%21Global RetailingGlobal RetailingLO 122Global RetailingGlobal RetailingLO 123Social TrendsSocial Trends• Education• State of Marriage and Divorce• Makeup of the American Household• Changing Nature of WorkLO 224U.S. Education LevelsU.S. Education LevelsLO 225MarriageMarriage1970 2000%nevermarriedages30-34Men<10% Men30%Women6% Women22%MedianageofmarriageMen23 Men26Women21 Women2526Makeup of American HouseholdsMakeup of American HouseholdsLO 2100806040200 1990 2000 2010 Year OtherLiving AloneSingle ParentsOther MarriedMarried with Children PercentSOURCE: U.S. Bureau of the Census, Statistical Abstract of the United States: 1996 (116th edition) Washington, D.C., 1996. Based on data contained in Tables 60, 61, 66, 67,68.27Makeup of American HouseholdsMakeup of American Households“ Mingles” Unmarried CouplesIncreased 167% since 19807% of couple householdsLO 228Changing Nature of workChanging Nature of workIn 200013 Million self-employed individuals5.5 Million home-based business29Makeup of American HouseholdsMakeup of American HouseholdsBoomerang Effect Occurs when grown children
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