CHAPTER 4: RETAIL CUSTOMERS Flashcards
What is market segmentation?
The process of dividing a heterogeneous consumer population into smaller, more homogeneous groups based on characteristics.
What factors influence customer satisfaction?
Customer satisfaction is influenced by the product purchased, pre-transaction services, transaction services, and post-transaction services.
What are the four most common population variables?
Growth trends, age distributions, ethnic makeup, and geography.
What is micromarketing?
Tailoring merchandise in each store to the preferences of the neighborhood or community.
What impact does education have on consumer behavior?
Higher education levels lead to more discerning consumers who are alert to price, quality, and advertising.
What is the significance of income growth in retail?
Income distribution varies among racial groups, affecting purchasing power and retail strategies.
How does credit usage affect consumer spending?
Consumers tend to spend more when using credit cards compared to cash due to promotional campaigns and low interest rates.
What are the stages of consumer problem solving in shopping?
Stages include problem recognition, information gathering, evaluation of alternatives, purchase decision, and post-purchase evaluation.
What is post-purchase evaluation?
The process where consumers assess their satisfaction with a purchase immediately after the transaction, which can lead to resentment if not addressed by retailers.
