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Chapter 5

RMG 400 Chapter Notes - Chapter 5: Data Warehouse, Psychographic, Zip Code


Department
Retail Management
Course Code
RMG 400
Professor
Janice Rudkowski
Chapter
5

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Data can be collected and future data can be forecast (size of markets, age/status of a demographic);
-What can’t be predicted with certainty is the taste and attitudes of customers in the future
Collecting data isn’t the issue, interpreting it correctly to make a business strategy is
4 trends impacting the retail market:
-The US population has shifted south: more than half of US population growth in the past decade has occurred in the
south
-A “browning” has occurred: Nonwhites accounted for an estimated 85% of the net population growth in the past decade
-A simultaneous “graying:” 8,000 Americans will turn over the age of 65 every day for the next 5y
-Women are also getting a better foothold in the US: nearly half of all paid jobs and 40% of businesses owned
Retailers have to respond quickly to changes in attitudes/tastes of customers, declines in size of target
markets, and changes in spending patterns
Demographic and Consumer Behavior Trends
-Related to characteristics and lifestyles of a particular group
-Identify relevant information, and then use it to make buying decisions
Marital Status and Birth Rates
-Single-person households are increasing and are expected to continue increasing
-Middle-aged singles on the rise
-Population growth on the whole will continue to slow
Households
-Increase in the number of working women means there will be higher demand for career wear
-Grocery stores will also need to offer more convenience food
-Number of male “homemakers” (i.e. whoever does the shopping) is increasing
Age Groups and Spending Patterns
-By 2020, 115-120 million baby boomers will have retired, and will be healthier than past gens
-However, their attitudes vary widely, meaning they can’t be looked at as a single market segment
-As the population ages, more products will be geared towards safety, convenience, and comfort
Ethnic Origin
-Whites are projected to become a minority by 2050 (47%)
-The Hispanic population will triple in size by 2050
Lifestyle Trends
- Psychographic trends can be very profitable if identified and used correctly
“Busy Busy BusyLifestyle
-Most Americans are reevaluating their lives after the physical and mental toll of constantly juggling a variety of tasks
-Shopping has become a chore in their minds
-However, retailers are taking advantage of this by offering products that will calm and soothe the users:
aromatic candles, relaxing teas, and bath soaps
Computer and Social Media Junkies
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