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Target Market
- Defined group most likely to buy a product
- •Changes as consumers age
- •External elements change consumers’ desires
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Social Factors Influence:
- Products purchased
- Prices paid for products
- Effectiveness of promotions
- How, where, and when people purchase
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Core American Values
- Self-Sufficiency
- Upward Mobility
- Work Ethic
- Conformity
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Ranked Characteristics of Product Quality
- Reliability
- Durability
- Easy maintenance
- Ease of use
- Trusted brand name
- Low price
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Component Lifestyles
The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.
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Tweens
- Pre- and early adolescents, age 9 to 14
- Population of 20 million
- Purchasing power of $21 billion in 2008
- View TV ads as “just advertising”
- Emerging as “the richest generation” and the “most influential generation in history”
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Generation Y
- Born between 1979 and 1994
- Population of 73 million
- Purchasing power of $200 billion annually
- Researchers have found Gen Yers to be:
- –Impatient
- –Family-oriented
- –Inquisitive
- –Opinionated
- –Diverse
- –Time managers
- –“Street Smart”
- –Connected
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Generation X
- Born between 1965 and 1978
- Population of 40 million
- Savvy and cynical consumers
- More protective and involved with their kids
- Value the importance of education
- Avid buyers of the latest clothes, technology, and recreational products
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Baby Boomers
- Born between 1946 and 1964
- Population of 77 million— the largest demographic segment
- $2 trillion in spending power a year
- Income will continue to grow as they keep working
- Four segments of baby boomers:
- “Looking for balance”
- “Confident and living well”
- “At ease”
- “Overwhelmed”
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Economic Factors
- Consumer’s Income
- Inflation
- Recession
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Basic Research
Pure research that aims to confirm an existing theory or to learn more about a concept phenomenon.
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Applied Research
An attempt to develop new or improved products
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Laws and Regulations Protect:
- New technology
- Society
- Businesses
- Consumers
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Acts that Regulate competitive environment
- Sherman Act
- Clayton Act
- Federal Trade Commission Act
- Celler-Kefauver Antimerger Act
- Hart-Scott-Rodino Act
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Acts that Regulate pricing practices
Robinson-Patman Act
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Acts that Control false advertising
Wheeler-Lea Act
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Consumer Product Safety Commission
Protects consumer safety in and around their homes
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Federal Trade Commission
Prevents unfair methods of competition in commerce
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Food & Drug Administration
Enforces safety regulations for food and drug products
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Powers of the FTC
- Cease-and-Desist Order
- Consent Decree
- Affirmative Disclosure
- Corrective Advertising
- Restitution
- Counteradvertising
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environmental management
whena company implements stragies that attempt to shape the external environment within which it operates
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Demography
the study of people's vital statistics such as their age, race and ethnicity, and location
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multiculturalism
when all major ethnic groups in an area- such as a city country or census tract- are roughly equally represented
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purchasing power
a comparison of income versus the relative cost of a set standard of goods and services in differnt geographic areas
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inflaction
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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recession
a preiod of economic activity charcterized by negative growth, which reduces demand for goods and services
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