Lecture Management of retail buying – Chapter 3: Understanding the consumer

Ch. 3: Understanding the Consumer
• How retailers & their research teams decide 
what motivates consumers
• How economic & social trends impact consumer 
preferences (& therefore, retail buying)
• Where to find both internal & external data that 
can help forecast demand for products

Copyright © 2006 by John Wiley & Sons, Inc. All rights rese


Common Selection Factors
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Style
Type of packaging
Configuration of package
Ease and/or cost of maintenance
Healthfulness (real or perceived)
Safety
Energy savings or conservation
Quality of workmanship
Environmental “friendliness” (“green” products)

Copyright © 2006 by John Wiley & Sons, Inc. All rights rese


Demographics & Psychographics
Demographics – Age, gender, nationality, 
income, occupation, marital status.
Psychographics – Education level, political or 
religious affiliations, household make­up, 
spending decisions.
Types & sources of this information:
   
Primary
Internal
Secondary
External

Copyright © 2006 by John Wiley & Sons, Inc. All rights rese


Sources of Internal Research
• Sales reports
• Markdowns
• Data about product 
turnover
• Reports about 
promotions (& how 
successful they 
were)

• ‘Want slips’ and 
rain­checks filled out 
at store
• Employee surveys & 
opinions
• Responses to 
catalogs, coupons, 
& other mailings

Copyright © 2006 by John Wiley & Sons, Inc. All rights rese


Sources of External Research
• U.S. Commerce 
Department
• U.S. Bureau of 
Labor Statistics
• Federal Deposit 
Insurance Corp.
• Your state’s Dept. of 
Commerce
• Trade associations

• Industry publications
• News clipping 
services
• Research agencies 
and consulting firms
• Your own customer 
advisory panels & 

“focus groups”

Copyright © 2006 by John Wiley & Sons, Inc. All rights rese