U3- Customers

Question 1

Name the 6 factors which affect how consumers behave and how their buying preferences change with circumstance

Answer 1

Demographics

Income

Location

Social class

Lifestyle

Personality

Question 2

What is demographics?

Answer 2

The study of the structure of the population in terms of

Age
Gender
Household income
Buying patterns 
Lifestyle

Research shows similar groups have similar buying preferences

Question 3

What does using demographics allow the business to do?

Answer 3

To tailor products to each groups needs

Recognise market segments

Achieve greater profitability

Helps improve customer service

Question 4

How does income impact customers?

Answer 4

The more income the higher the quality and quantity of products they will buy

Question 5

How does location impact customers?

Answer 5

Customers living in different areas of the world will have different needs and spending patterns

Question 6

How does social class impact customers?

Answer 6

Consumers tend to have similar interests and tastes within broad classification

Question 7

How does lifestyle impact customers?

Answer 7

Consumers lifestyle impacts the products they will buy e.g. Healthy lifestyle consumers will be more conscious of food and drink

Question 8

How does personality impact customers?

Answer 8

It will dictate the products they will be more interested in buying

E.g. Extroverts will be more likely to buy loud and unusual clothing

Question 9

What are social classifications?

Answer 9

Used by market analysts and governments to group together members of the public who tend to behave in a certain way due to their income and social status

Question 10

How are social classifications useful in marketing?

Answer 10

The spending patterns of these groups tend to be broadly similar

They help the marketing department know the best places to advertise where the target market is most likely to see the adverts e.g. Certain magazines