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Canada (161,878)
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FSN 123 (20)
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Department
Fashion
Course
FSN 123
Professor
Luann Lafrenz
Semester
Fall

Description
Chapter 2: The Environment of Fashion The 4 factors affect fashion interest and demand: 1. Market segmentation by geographic, demographic, psychographs and behaviours 2. The degree of economic development and well-being of a country or society y 3. The sociological characteristics of the class structure 4. The psychological attitudes of consumers Market Segmentation Target market- specific groups of potential customers that a business is attempting to turn into regular customers Market segmentation is the separation of the total consumer market into smaller groups Geographics - Population studies that focus on where people live: country, city size, population density, climate Demographics - Population studies that divide broad groups of consumers into smaller, more homogeneous market segments which includes  Age  Gender  Family size  Stages in family life cycle  Income  Occupation  Education  Religion  Race and ethnicity or nationality Psychographics - Studies that develop more extensive and personal portraits of potential customers and their lifestyles:  Social class  Values and lifestyle  Personality - Request information about the actual product benefits desired by consumers to match image of company to type of consumer - Uses PRIZM to help fashion industry marketers identify and understand their customers and prospects, VALS 2 sorts customers into 8 major categories based on psychological attributes Behaviour - Studies group consumers according to their opinions of specific products/services or their actual rate of use of it - Helps companies understand and predict the behavior of present and potential customers – can identify why one refuse to buy product The Economic Environment Consumer Income - More personal income, more socially acceptable considered Personal Income - The total/gross income received by the population as a whole, dividing it by # of people in the population = per capita personal income Disposable Personal Income - The amount a person has left to spend after taxes - 50-64 year old has the highest disposable income Discretionary Income - The money that an individual or family can spend after buying necessities (food, clothing, shelter) - Middle class: defined by their aspiration more than their income- home, car, college for children, health - Families at variety of income aspire to be middle class - A few are able to buy a variety of goods but not the best target market because the middle-class overcomes the higher Purchasing Power of the Dollar - Value of the dollar has decreased - A decline in the purchasing power of money is caused by inflation- continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services - When demand exceeds supply - Recession: a significant decline in economic activity spread across the economy lasting more than a few months Population 2 factors relating to population 1. The size of the total population and the rate of its growth 2. The age mix of the population and its projection into the future Size Population - Relates to the extent of current fashion demand Age Mix - Each group has its own special fashion interests, needs and reactions, changes in the age mix serve as vital clues to future fashion demand - 65+ aged is steadily growing; 50 years are more than half of all discretionary spending power - Mature group becomes more important because their earlier retirement (incomes) allows them to spend more The Sociological Environment Leisure Time - Different ways of leisure time for people - Brought changes to people’s lives in many ways: values, standards of living, scope of activities Casual Living - Most people have a large selection of casual clothes and sportswear - “Dr
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