Consumer Behaviour
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Transcript of Consumer Behaviour
Consumer Behaviour
Gen X, Gen Y, and The Elderly: Impact on Retail
Elderly
General: Idealist• Born between 1945 and 1964: most of today’s world leaders
and executives.• The fastest growing segment of the population.• They perceive themselves as younger than their years –
(cognitive age versus chronological age).
Consumer Behaviour• Households are small and their need for new purchases is
limited.• Enjoy convenience in the marketplace and appreciate their
leisure time.• Although brand loyal, they only tend to try new products or
brands if given good reasons to do so.• Enjoy buying for themselves, for their homes, and for others.
Generation X
General: Reactive• Those born between 1965 and 1977 (40 million people).• First too be deeply affected by divorce, saw their families
encounter several periods of economic turbulence.• Are now young adults who are driving the new hi-tech
economy, forming families, and becoming an increasingly positive economic force.
• Look for a balance between work and leisure.
Consumer Behaviour• Distrustful to marketing.• Not drawn to traditional forms of advertising (i.e. hyping up
products).• Express their need to stay in control by purchasing.
communications equipment such as fax machines, e-mail, and mobile phones.
• Do not like labels, are cynical and do not want to be singled out and marketed to.
Generation YGeneral: Civic
• Primarily the offspring of the Baby Boomers.• Pragmatic and hard working, with emphasis on independence and individuality.• Economically more optimistic than previous generations, holding a positive outlook as a result of growing
up in a time of prosperity.
Consumer Behaviour• Remarkably sophisticated consumers with a high level of brand awareness.• And they are healthy spenders.• Their parents make all the important decisions. • Tend to think of their image before purchase any product.• Disloyal to brands but highly loyal to relationships.• Most influenced by friends and peers.• Short attention span.
One Example To Sum It Up
Differences Relevant to a Retailer
PARAMETER
GEN X GEN Y ELDERLY
Consumer Type Sincerity appeals Smart (aware) consumer Motivated Consumer
Role in family Decision makers and Information Gatherers Strong Influencers Decision Maker
Media Habits TV strongest medium TV, Internet Newspapers a widespread medium
Purchase Behaviour Materialistic/cynical Savvy ,Pragmatic Narcissist, Consumption Oriented
Technology Use technology Assume technology Have technology
Price – Quality Price Oriented Value oriented Conspicuous Consumption
Attitude towards Brand Rebel against hype Rebel against hype Respond to image building
type
Loyalty Not really: Attitude of getting the best deal As long as convenient Brand Loyal
Diversity Accept Celebrate As a cause
Shopping Behaviour Self reliant / individualistic
Self-inventive / individualistic Mass movement
Appealing themes/ Products
Beverages, snacks, footwear and music
Entertainment / Clothes and accessories, health
Groceries, household necessities
Case Studies in Retail
Gen-X• Amazon.com - No nonsense retailer which appeals to the generations use of different
media and value
Gen-Y• Apple - Most admired brand by Gen-Y, So clean and simple and easy to use, No excess
Elderly• Harley Davidson - The ultimate luxury, also a statement of freedom and lost youthfulness
Gen-X• Amazon.com - No nonsense retailer which appeals to the generations use of different
media and value
Gen-Y• Apple - Most admired brand by Gen-Y, So clean and simple and easy to use, No excess
Elderly• Harley Davidson - The ultimate luxury, also a statement of freedom and lost youthfulness
Step ElderlyGeneration
XGeneration
Y
Problem Recognition
Only resort to necessary purchases, less exotic or
luxury items, simpler lifestyles
Self-aware, will try to upgrade lifestyles, but still
conservative
More self-aware and more interested in maintenance
and recent trends
Information Search
Extensive in case of high-involvement or high-risk
products
Rely on traditional ATL advertising (TV ads) plus the Internet, occasionally seek
peer groups
Extensive across categories, seek
information on Internet, from peer groups
Alternative Evaluation
and Selection
No interest in fashion, high-end items must
represent value for money
Less interested in trends and more stinted in overall
spending
Spend more freely and show more interest in
fashion and style
Outlet Selection and
Purchase
Prefer locations that give good buys and encourage touch-and-feel i.e. where they can get a better first-
hand experience
Trade off between time spent shopping and desire to make a good buy. A mix of multi-brand outlets and
convenience stores.
Prefer exclusive outlets for up –market items such as
durables due to their exclusivity, but otherwise prioritize convenience and
reduced shopping time
Post-Purchase Processes
Likely to grudge purchases that are not necessary or
value for money
Moderate dissonance, even on reasonable purchases
Less likely to experience dissonance due to self-
confidence and extensive information search
Step in Decision Model Key Trait or Constraint for Retailer
Problem Recognition Consumer self-awareness, interest level in style and fads
Information Search Right level of information for a given category, increasing use of Internet and non-traditional media
Alternative Evaluation and Selection Price, value for money, interest in style
Outlet Selection and Purchase Convenience, number of brands available, exclusivity
Post-purchase Processes After-sales service, service experience
Implications for Retailers
The Ideal Retail Mix
Place
ProductValue
People Communication
• They travel the most for the goods/brands they like.• Store Ambience not a strong driving factor.
•Most brand loyal – Most of the marketing spend today is on them
• Conspicuous consumption• Luxury for retired lives• Do not spend on goods they don’t need.
• Highly Social and Demand Service•Value Personal Recommendations and expert opinion
• Traditional mass media advertising and word-of-mouth. •Not very open to internet, social media.
Place
ProductValue
People Communication
•Clean Ambience – Tidy, AC etc.•Trade off between distance travelled and quality of goods available.
•High Quality Product with longer Life – but affordable price tags•Experiment with brands – Least Brand Loyal
•Offer Value and “Live Up to” Claims - Like Products that Deliver•Better to use Market Penetration Than Price Skimming
•Listen more to the sales-person than Ads•Like Personalized attention
•Direct Mailers – Receptive to Uniqueness•Highly Individualistic Campaigns•Interactive Advertising Using New Media•Dislike The use of Role Models
Place
ProductValue
People Communication
•Prefer Convenience except for up-market goods.• Prefer larger stores – one stop shopping•Store design contains areas for young people to hang out.
•Collection/Variety of Products at lower costs – Value for money•More than a product – Value added benefits and Exclusivity•“don't like a hard sell “ but “brand and fashion-conscious “
•Value for money, information seekers for up market categories•Low decision making for non-necessary products
•Born into technology – low social interaction, high virtual interaction
•Creative Advertising – Impulse Buyers (Unplanned Buying)•Ads focus on high energy, with fast-moving visuals, splashy graphics, brilliant colours•Fickle consumer – 360 degrees campaign
Sources• Stephanie M Noble & Charles H Noble – Getting to know Y: The Consumption Behaviors of new cohort,
American Marketing Association Conference• Canadians Plastic Sector Council – GenX /GenY Behavioural Research and Messaging Strategy , March
2008• Enterprisingmuseum.com• Deloitte Consulting LLP — Who are the Millennials, a.k.a. Generation Y, 2005• Retail buying criteria of X Generation consumers