Leveraging Demographic Analysis and Consumer Research to Enhance Product Segmentation and Household Understanding

Leveraging Demographic Analysis and Consumer Research to Enhance Product Segmentation and Household Understanding

Segmentation

Describe how demographic analysis helps buyers select the appropriate products for customers.

According to Makgosa & Sangodoyin (2017), demographics are a part of the population likely to buy or use a product or service. Demographics analysis helps buyers determine the target audience for a particular product or service, thus establishing whether they fit in the target audience or not. For instance, a buyer interested in purchasing a vehicle may analyze the demographics of those who have purchased the car to determine whether the car is appropriate for the target customers or not.

Explain why consumer research on multiple-member shared households is gaining importance for businesses.

Multiple-member shared households include individuals with different demographic attributes such as age, gender, and income status. Consumer research on the multiple-member shared household is gaining importance because it helps understand the distribution of target customers and the factors that may affect the intent to purchase in every household. It also helps companies determine what to focus on when advertising their products based on the primary decision-maker in the family.

Research techniques

Discuss how using focus groups helps businesses make decisions in the merchandise planning process.

Guerrero & Xicola (2018) argue that focus groups in market research identify consumers’ perceptions, feelings, and thoughts about a solution, product, or service. They allow a free exchange of information among consumers, thus enabling the company to understand what consumers think about their products or services. The use of focus groups plays a significant role in helping businesses make decisions in the merchandise planning process by helping them understand the most important things to focus on. For instance, if the consumers in the focus group state that the current quality of a specific product or service is poor, the business can focus on improving quality.

Using surveys is a common practice when businesses conduct market and consumer research. What are the pros and cons of using surveys to conduct research?

One of the pros of using surveys to conduct research is that they are cost-effective because they can be used to reach many people quickly, especially if they are distributed online. The second pro is that they allow the person conducting research to ask as many questions as possible, thus creating flexibility in data analysis because there is a wide range of data to consider, such as the research target’s opinions, attitudes, beliefs, behavior, and values. However, surveys may result in unreliable data because some respondents may give false answers. Another disadvantage is an unintentional bias which results in an incorrect response

References

Guerrero, L., & Xicola, J. (2018). New approaches to focus groups. Methods in Consumer Research, Volume 1, 49-77. https://doi.org/10.1016/b978-0-08-102089-0.00003-0

Makgosa, R., & Sangodoyin, O. (2017). Retail market segmentation: The use of consumer decision-making styles, overall satisfaction, and demographics. The International Review of Retail, Distribution and Consumer Research, 28(1), 64-91. https://doi.org/10.1080/09593969.2017.1334690

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Use your course content and outside research on consumer analysis to answer the following:

Segmentation

Describe how demographic analysis helps buyers select the appropriate products for customers.

Leveraging Demographic Analysis and Consumer Research to Enhance Product Segmentation and Household Understanding

Explain why consumer research on multiple-member shared households is gaining importance for businesses.

Research techniques

Discuss how using focus groups helps businesses make decisions in merchandise planning.

Using surveys is a common practice when businesses conduct market and consumer research. What are the pros and cons of using surveys to conduct research?