Understanding Buyer Behavior
Read this chapter. The terms "customer" and "consumer" are often mistakenly used interchangeably. The distinction is blurry because different organizations, academics, and governments have varying definitions for both of them. One easy way of distinguishing between the two is to think of the consumer as a potential customer to a firm and the customer as someone that already consumes the goods a specific firm produces. For example, if you regularly purchase shoes from Footlocker, you are a Footlocker customer. But if your friend does not shop at Footlocker, then Footlocker considers him a consumer: a potential customer. Firms often target consumers and existing customers differently.
Buyer Behavior as Problem Solving
Demographic Influences
An important set of factors that should not be
overlooked
in attempting to understand and respond to consumers is demographics. Such variables as
age, sex, in come, education, marital status, and mobility can all
have significant influence
on consumer behavior. One study showed that age and education have
strong relationships to score selection by female shoppers. This was particularly true for
women's suits or dresses,
linens and bedding, cosmetics, and women's sportswear.
DeBeers Limited, which has an eighty percent share of the market for
diamonds used
in engagement rings, employed a consumer demographic profile in
developing their promotional program. Their target market consists of single women and men
between the ages
of 18 and 24. They combined this profile with some lifestyle aspects to
develop their promotional program.
People in different income brackets also tend to buy different types of products and different qualities. Thus various income groups often shop in very different ways. This means that income can be an important variable in defining the target group. Many designer clothing shops, for example, aim at higher-income shoppers, while a store like K-mart appeals to middle- and lower-income groups.