Chapter 7 ChatGPT Flashcards
Why is it important for retailers to understand their customers?
Knowing customer demographics, preferences, and behaviors helps retailers optimize product offerings and enhance customer experience.
Example: Target uses shopper data to personalize promotions.
What are consumer demographics, and why do they matter?
Demographics include age, gender, income, and location. They help retailers tailor marketing.
Example: Luxury brands target high-income earners, while discount stores focus on budget-conscious shoppers.
How do consumer lifestyles influence retail marketing?
Lifestyles shape shopping behavior.
Example: Health-conscious consumers prefer organic grocery stores like Whole Foods.
How do retailers adapt to consumer lifestyles?
They adjust offerings to fit customer habits.
Example: Amazon Fresh provides home grocery delivery for busy shoppers.
What are the key steps in the consumer decision-making process?
Stimulus, problem awareness, info search, evaluation, purchase, and post-purchase behavior.
Example: Buying a smartphone involves researching models, reading reviews, and comparing prices.
How do retailers assist in decision-making?
They provide information, promotions, and personalized offers.
Example: Macy’s uses big data to send tailored discounts.
What is perceived risk in consumer behavior?
It’s uncertainty about a purchase (financial, functional, social risks).
Example: Apple offers warranties to ease concerns about expensive devices.
How do retailers reduce perceived risk?
Return policies, warranties, product reviews.
Example: Zappos offers free returns to encourage shoe purchases.
What is impulse buying, and how is it encouraged?
Unplanned purchases influenced by store layout and promotions.
Example: Candy and magazines near checkout lines in supermarkets.
What are the types of consumer decision-making?
Extended (car purchase), limited (shoe choice), routine (buying milk)
Example: Grocery shopping is often routine, while buying a laptop is limited decision-making.
How do retailers target different market segments?
Mass marketing (broad audience), concentrated (niche), differentiated (multiple segments)
What is an example of differentiated marketing?
Retailers create unique strategies for different customer groups.
Example: Gap Inc. has Banana Republic for professionals and Old Navy for budget shoppers.
What are key environmental factors affecting consumer behavior?
Economy, competition, technology, regulations.
Example: The rise of e-commerce has changed how people shop.
How has technology changed shopping behavior?
It’s made shopping more convenient and personalized.
Example: Mobile apps and AI-driven recommendations on Amazon.
