Understanding What You Read – Week 3
Week 3- Chapter 5- Understanding Your Customer
1. Identify demographic trends that are occurring in the United States, related to (a) number of single-person households, (b) median age for marriage, (c) birthrate, (d) U.S. population growth, and (e) number of male homemakers. Single person households are showing the greatest increase in numbers and that trend is projected to continue. Birthrate has remained relatively stable in the United States since 1994 & growth will continue to slow. The percentage of male homemakers continues to increase, but women will continue to make the majority of purchasing decisions. 2. Identify behavioristic trends that are occurring in the United States related to spending patterns of (a) children, (b) baby boomers, and (c) Hispanic teens. Spending by and for children will increase. As more responsibility is placed on younger children because of latch-key lifestyles they are learning savvy shopping skills along with gaining confidence in their role as shoppers. Baby boomers vary markedly in their attitudes & values thus cannot be looked at as a single market segment. Baby boomers tend to spend lavishly on their children. Hispanics will compose 29% of the U.S. population by 2050, compared with 14% in 2005. 3. Describe lifestyle changes that are occurring in the consumer market. Lifestyle changes that are occurring in the consumer market are things such as Travel consultants, fitness focused products & retirement housing. 4. Describe the differences between rational and emotional buying motives. The difference between rational & emotional buying motives is that rational buying motive concerned with basic human needs such as food, clothing & shelter where as emotional buying motives involves customer’s feelings rather than logic. 5. How do customers select one store over another when making a purchase? Customers select one store over another when making a purchase because of convenience, services offered & assortment of merchandise.
6. List types of data maintained by retailers in data warehouses. Types of data maintained by retailers in data warehouses are sales, margin, inventory & other key merchandising performance measures. 7. Describe how retailers use data mining.
Retailers use data mining to search through warehoused data to find trends & patterns that might otherwise have gone unnoticed. 8. Describe how associations are used with data mining to learn more about customers. Associations are used with data mining to learn more about customers because the system links occurrences to a single event. 9. How is data mining used for affinity analysis?
Data mining is used for affinity analysis because data warehouse can identify products & merchandise classifications most commonly purchased together. This result can be better in store product & improved promotional display effectiveness.
10. List some of the challenges facing retailers when using database marketing. Some of the challenges facing retailers when using database marketing is too many retailers lack a strategy for coordinating database marketing with other traditional approaches. Some consumers feel that using information on their shopping habits constitutes an invasion of privacy.
11. List the basic goals of using database marketing.
Some basic goals of data base marketing is
Targeting promotional offerings to specific customers.
Gaining a better understanding of customers.
Strengthening the store customer relationship.
Week 3 – Chapter 6-Understanding Product Trends
1. Why should buyers constantly monitor their merchandise mix? Buyers should constantly monitor their merchandise mix because an appropriate mix today might not contain the right products tomorrow. 2. Explain how products that buyers purchase influence personnel decisions for a store. Products that buyers purchase influence personnel decisions for a store because stores that wish to develop a...
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