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Consumer Behavior > Lesson 6 Videos > Flashcards

Lesson 6 Videos Flashcards

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1
Q

Demographics is

A

the size, structure, and distribution of a population.

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2
Q

Consumer analysts use

A

demographic trends to predict changes in demand for and consumption of specific products and services.

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3
Q

Demographics are merely proxies for what really needs to be measured…..

A

behavior.

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4
Q

Marketers use demographic analysis as

A

market segment descriptors and in trend analysis.

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5
Q

“Demographics explain 2/3 of…

A

…everything. They help predict which products will be in demand & what school enrollments will be in the future. They also help forecast which drugs will be in fashion 10 years down the road & which types of crime can be expected to increase.”- David Foot

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6
Q

Demographics is used in analyzing policy questions related to

A

the aggregate performance of marketing in society (macromarketing).

How much food will be needed to feed the 	population of a country in the future? 

If the interest rate is increased how will it 	affect consumer spending?

Does affluence in one nation create more or 	less affluence in other nations?
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7
Q

Demographic analysis provides information for

A

social policy

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8
Q

Market analysis requires information about

A

people with needs
ability to buy
willingness to buy

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9
Q

Birthrate:

A

number of live births per 1,000 population in a given year.

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10
Q

Natural increase:

A

surplus of births over deaths in a given period.

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11
Q

Fertility rate:

A

number of live births per 1,000 women of childbearing age (15 to 44 years).

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12
Q

Niger has highest fertility rate :
Taiwan has lowest fertility rate :

A

6.5 children per woman.
1.2 children per woman

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13
Q

The number of births needed to maintain current U.S. population levels is

A

2.1 children (allowing for infant mortality).

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14
Q

Population momentum:

A

future growth of any population will be influenced by its present age distribution

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15
Q

Factors affecting birthrates:

A

Age distribution of population
Family structure
Social attitudes toward family/children
Technology

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16
Q

Contributors to Changing Structure of Consumer Markets

A

Increasing life expectancy

Immigration represents about 25-30% of annual growth in United States

14% of US popn are Immigrants

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17
Q

Changes in age distribution affects the

A

types of products and services that will be bought and consumed in the future.

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18
Q

Cohort analysis is

A

fundamental to understanding changing consumer markets.

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19
Q

A cohort is

A

any group of individuals linked as a group in some way.

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20
Q

The key to cohort analysis is

A

examining the influences that are shared by most people in a specific group.

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21
Q

Ultimately, changes in age distribution influences and cohort analysis affect

A

consumer decision processes and the types of products, brands, and retailers consumers prefer when responding to a firm’s marketing strategy.

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22
Q

The number of children in the U.S. is projected to increase, to

A

80 million in 2050 (20% of popn)

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23
Q

The importance of children as consumers increases even more, with the higher proportion of

A

first-child babies and dual income parents generating higher demand for quality products and services.

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24
Q

Most parents do most of the

A

buying.

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25
Children are often involved in
family purchasing decisions. Sometimes have veto power.
26
Children often have their own ability to buy….
may offer marketers the opportunity to start a lifelong relationship.
27
‘Generation Z’ (Generation Wii, NetGen, Digital Natives)
Born in the mid nineties and early 2010s (6-16 year olds) with 86 million members. Greater need for financial security, very competitive, entrepreneurial and values independence more than other gens. Avid gamers and music-goers, love messaging, always on the internet, on social networks, and on mobile systems—they are truly the “Digital-ites.” They tend to care about trends, but are also quick to research top issues. 
28
Millenials (‘Generation Y’, Echo Gen,Generation Me)
Born in the 1980s and early 1990s (26-40 year olds) with 72 million members. Projected 79 M by 2050. Greater need for peer acceptance, which often guides product and brand choice. More likely to switch brands quicker than other segments. Teens like the social aspects of shopping with friends. In 2014, the number of millennials in the US eclipsed the number of baby boomers.
29
‘Generation X’ (Young Adults)
Segment of 41-to 55 year olds is declining but will have a slight increase with the inclusion of older Gen Y consumers. The Gen X popn is projected to outnumber the Boomers in 2028 when there will be 64.6 M Gen Xers and 63.7 M Boomers The Census Bureau projects that the Gen X population will peak at 65.8 M in 2018. Need to buy products to set up households and for young children. With many needs and greater financial restraints, they often shop at value-oriented retailers.
30
‘Baby Boomers’ (Muppies)
Estimated about 70 million Boomers. By midcentury, the Boomer population will dwindle to about 16 million. Good market for luxury travel, spas, health clubs, cosmetics, salons, diet plans foods, and health foods. Group represents the greatest share of the workforce, the greatest share of income, and the greatest share of voting power, and political influence. This group (56 to 76 years) is about 74 million. Great market for luxury travel, spas, health clubs, cosmetics, salons, diet plans foods, and health foods. Group represents the greatest share of the workforce, the greatest share of income, and the greatest share of voting power, and political influence.
31
Silent Generation (‘Young Again’ Market)
Also referred to as mature market, seniors, and elderly. These segments are expected to grow substantially. Despite advanced chronologic age, many in this segment feel, think, and buy young. Important segmentation variables for this group include health, activity level, discretionary time, engagement in society, and gender. Communicating with this segment often requires alteration of traditional messages and materials. - larger type and bright colors - newspapers and AM radio - sensitive to revealing their age
32
Cognitive age
the age one perceives one’s self to be.
33
Cognitive age is measured in terms of
how people feel and act, express interests, and perceive their looks.
34
Geodemography, refers to
where people live, how they earn and spend their money, and other socioeconomic factors.
35
The study of demand related to geographic areas assumes that
people who live in proximity to one another also share similar consumption patterns and preferences. Assigns the attributes of small areas – usually neighborhoods – to the consumers who live within them and, based on this assignment, divides the consumer marketplace into meaningful segments that are locatable and reachable. The discipline leverages spatial and mathematical patterns in how people live and shop to help marketers make inferences about consumer behavior. Answer the marketing questions: Who are my customers? Where do they live? and How can I best reach them?
36
The greatest gains in population are expected in
California, Texas and Florida…the move to the ‘Sunbelt states’. These states are considered prime candidates for new stores compared to other states where populations may be declining..
37
Geographic variables affect
many components of a firm’s marketing strategy.
38
Economic Resources
The ability to buy, typically measured by income and wealth.
39
Income
money from wages and salaries as well as interest and welfare payments.
40
Wealth
a measure of a family’s net worth or assets in things such as bank accounts, stocks, and a home, minus its liabilities such as home mortgage and credit card balances.
41
What consumers think will happen in the future
(consumer confidence) heavily influences consumption.
42
Economic resources influences whether consumers will increase their debt or
defer spending to pay off debt.
43
Measures of consumer confidence are important in
making decisions about inventory levels, staffing, or promotional budgets.
44
Net worth influences willingness to spend but not necessarily
ability to spend, because much wealth is not liquid and cannot be spent easily.
45
The United States population is divided into 5 classes based on the annual income of the household.
Poor and Near Poor (0-29,999) Lower Middle Class (30,000-49,999) Middle Class (50,000-99,999) Upper Middle Class (100,000-349,999) Rich (350,000+)
46
Studies show that as much as 68% of the country defines themselves as middle class, but data show that, based on income definition,
only about 50% of the country is actually middle class.
47
The superaffluent represent the
top quintile of consumers in terms of income. Up-Market
48
superaffluent households often consist of
two income earners who place a high value on time.
49
superaffluent consumers value
extra services provided by some retailers.
50
Saving money is as important as spending is for many individuals in the
super affluent group
51
super affluent consumers will shop...
discount stores, use coupons, and wait for sales.
52
Communicating with print consumers that are superaffluent
More print oriented in communications Simple ads that promote image. Credibility of source selling product. Product reviews influence this group.
53
Throughout the world, the majority of consumers are
low income. Down-Market Retailers such as Wal*Mart have found success by providing good products at reasonable prices. Closeout stores offer brand name products at deep discounts to at all income-level consumers. Dollar stores are one of the fastest growing retail categories. Provide good products at reasonable prices Maintaining attractive stores. Offering stylish and up-to-date products. Have friendly employees that treat customers with respect.
54
The most attractive markets are countries that are
growing both in population and in economic resources. Which countries will grow the most in the future? Which countries have the highest per capita income?
55
Low income countries offer an advantage to firms looking to buy
products from the lowest-cost source.
56
There are pockets of consumers who are able to
buy products, even in the poorest countries.
57
Emerging Markets
Characterized by high birth rates, high population growths and low incomes.
58
In Emerging Markets, marketing programs should focus on creating
brand awareness (because competitors will follow) and stimulating product trial.
59
In Emerging Markets, marketers may have to teach consumers about
products taken for granted (eg: deodorant).
60
India, soon to be the largest population in the world is currently a
huge marketing target. Has a middle class larger than the total market of most European countries, including France.
61
China is already being considered an
economic powerhouse with limitless marketing opportunities.
62
the Pacific Rim
Provides some of the most attractive markets for growth-oriented firms. Southeast Asia Hong Kong, Taiwan, Singapore, Indonesia, Philippines, etc. China Most populous nation: 1.4 B consumers. China is creating a market based economy that is running a significant trade surplus with the U.S. Australia A well developed infrastructure, older population with a higher income. Has well developed advertising & marketing research system. Japan Smaller than California, but the 126 million people consume more goods & services than any other country in the world except U.S.
63
Latin American markets have three major advantages for U.S. firms:
rapid population growth, moderately high incomes, and close proximity.
64
Some of the most attractive Latin American markets include
Brazil, Venezuela, Colombia, Argentina, and Chile.
65
Even though most consumers in Latin America may not be able to afford luxury items...
intermarket segmentation provides a way to identify segments that can afford many luxury items.
66
TOP 5-Trust in Advertising
Philipines 67% Brazil 67% Mexico 66% S. Africa 64% Taiwan 63%
67
BOTTOM 5-Trust in Advertising
Latvia 38% Germany 35% Lithuania 34% Italy 32% Denmark 28%
68
The attractiveness of Eastern European markets lies in
their similar preferences to Western consumers.
69
Marketers have launched a myriad of successful brands in
Eastern European Eg: Belarus, Russia, Romania, Ukraine, etc.
70
What is the most frequent leisure time activity in Eastern European?
TV viewing, which making TV advertising viable.
71
Because consumers have limited storage space & have few cars, thus 85% of Eastern Europeans shop
every day for food & other items.
72
T/F The EU is a market larger than the United States.
T 445 million people buying $6 trillion in goods & services. Products and people move across borders easily. Efficiencies include logistics, financial arrangements, and marketing economies of scale. Marketers can approach Europe as a single market, but national identity still exists among consumers.
73
Low population growth makes
customer retention extremely important for marketers.

Consumer Behavior (16 decks)

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