Chapter 2 - Click to edit Master subtitle style 10/27/10...

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Unformatted text preview: Click to edit Master subtitle style 10/27/10 Evolution of Consumption Chapter 2 10/27/10 Introduction  Consuming entails an exchange of psychic energy for objects or services that satisfy some human need  Consumption= 60% of the U.S. GDP  Consumption level is reflected in the amount & quality of goods and services that a consumer expects to have through out a lifetime  Physical, economic, & spiritual consumptions = 10/27/10 A culture of Consumption  People tend to judge others and themselves in terms of consumption level and its appropriateness for their perceived lifestyles  Current Consumer behavior › Increasing affluence › Demographics changes › Technological innovations › Changing tastes and lifestyles 10/27/10 Consumption and WWII  Retailers were challenged by controls on production , distribution and consumption  Retailers only replenished their inventory levels in proportion to the amount of ration stamps they collected  U.S. stores supported war efforts by promoting savings bond and stamp sales › Taught consumers about the value of conserving goods and how to do so 10/27/10 New Developments of Retail in WWII  Two merchandising innovations were developed for labor saving measures  Self-service shopping- provides consumers with additional information so they could select the merchandise that they desire  New Packaging strategies- allowed retailers to decrease selling costs through the use of 10/27/10 Consumption and Retail of the Postwar  American Golden Age : Characterized by increased income and employment › High growth rates › Low inflation, › Favorable agricultural and industrial product trade › Union bargaining power helped workers’ wage 10/27/10 Consumption and Retail of the Postwar Cont.  Cheaper product costs & increased income provided consumer with more spending potential = Challenges for businesses to compete  New marketing strategies developed to target consumer segments that were previously ignored by businesses have become a necessity 10/27/10 New Marketing Strategies Examples  Disney sells family-oriented cruises with entertainment and activities that appeal to multiple age groups  BMW & Mercedes now sell their cars at lower prices  Wal-mart & Kmart sell designer lines such as George and Martha Stewart 10/27/10 Postwar Spending Trends  Consumer spending grew slightly faster than demand  Spending on consumer services increased › Medical care, education, financial service, etc.....
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This note was uploaded on 10/26/2010 for the course ANSC 1401 taught by Professor Jackson during the Fall '09 term at Texas Tech.

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Chapter 2 - Click to edit Master subtitle style 10/27/10...

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