understanding consumer
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BUSMGT752Week6.pptxPlenary 6 Learning Outcomes
LO1: Understand what demographics are, how they’re used by marketers, and how they’re shifting
LO2: Specifically, identify the different generational cohorts and the unique characteristics of each
LO3: Understand psychographics/lifestyles and how they’re used by marketers
LO4: Understand what social stratification is and the related concepts of conspicuous consumption, social mobility, status anxiety, ‘affluenza’, and voluntary simplicity
LO5: Identify the broad social classes and their influences on consumer behaviour, and how marketers use this knowledge
Qualitative
Quantitative
1
Readings
Kravets, O., & Sandikci, O. (2014). Competently ordinary: New middle class consumers in the emerging markets. Journal of Marketing, 78(4), 125–140. https://doi.org/10.1509/jm.12.0190
Lin, C. F. (2002). Segmenting customer brand preference: Demographic or psychographic. Journal of Product & Brand Management, 11(4), 249–268. https://doi.org/10.1108/10610420210435443
Qualitative
Quantitative
2
External influences on consumer behaviour
Why do we need to go beyond the individual?
Individual consumers have various identities and characteristics on which we can group consumers
Marketers deal with large target markets, so group-level factors help in segmentation, targeting, and positioning
Assumption is that groups of people with similar individual characteristics will think and behave similarly
Qualitative
Quantitative
3
External influences on consumer behaviour
Qualitative
Quantitative
4
Demographics
Description of a population in terms of its size, structure, and distribution.
Population size: number of people in a population
Population structure: description of a population in terms of age, income, education, occupation, etc.
Population distribution: geographic location of individuals (e.g., region, rural vs. urban vs. suburban, etc.)
Qualitative
Quantitative
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Why are we interested as marketers?
Demographics provide basic categories that are simple yet effective. It forms the core of segmentation strategy.
Marketers can identify different demographic segments (i.e., needs and wants), new trends, growing populations, and importantly, preferred media platforms.
E.g., the size and income of a specific group (e.g., 24–34-year- olds) directly affects market demand for products that are commonly consumed by individuals within that group.
Marketers are interested in age, gender, size, income, occupation, education, and location of groups of consumers.
Qualitative
Quantitative
6
Age and Gender
Two seemingly concrete constructs are becoming more abstract as society develops
With the person next to you, discuss the following:
1) What is your age, and do you ‘feel’ that age? If not, how old do you feel?
2) What does it mean to be ‘male’ and ‘female’ in 2021?
Qualitative
Quantitative
7
Institutionalised Bias
Refers to: A tendency for the procedures and practices of particular institutions to operate in ways which result in certain social groups being advantaged or favoured and others being disadvantaged or devalued. ... Institutional racism and institutional sexism are the most common examples.
Qualitative
Quantitative
8
Market Segmentation in Market Research
Why do we do it?
Need to make people relatable
How do we do this in market research?
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Step 1: Select what you will profile on
What is important?
What do we need to know about our consumer?
What does age tell us about a person?
What does their identified gender tell us about a person?
What does their occupation tell us about a person?
What does their family tell us about a person?
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Step 2: Decide your research design
Typically we profile using quantitative research
When conducting qualitative research we will be using sampling techniques
When conducting quantitative research, you decide what variables to include in your survey, often you get an output that looks like this…
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Step 3: What is significant? What describes your segments?
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Step 4: Write it up for clients
We want to put it into a digestible format
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