67 26 consumer resources consumer resources refer to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: t and loyalty was possible amongst children as young as five years old [James, 2001:233]. This has been one of the reasons why retailers try to present their offerings in such as way that it appeals to mothers and children in hope that children will learn to look forward to a trip to the store. An example is illustrated by store edutainment that imitates adult offerings whilst teaching children that consumerism is more than just purchasing items but rather a gateway to human interactions [Creighton, 1994:35]. 67 2.6 Consumer resources Consumer resources refer to all of the demographic, physical, psychological and material means consumers have to draw on, including income, self-confidence, health, intelligence, energy level, eagerness to purchase and education [Walker et al., 1999:177; Burgess, 1998:26; and Churchill & Peter, 1998:31]. These different forms have subsequently been analysed under three categories, namely economic resources, temporal resources and cognitive resources. Economic resources refer to the financial means available to a consumer. Measuring economic resources today is rather complicated. Bartering and tax evasion are two examples that can complicate the matter [Parkin & King, 1995:138]. The challenge lies in defining variables that mean the same for everyone and that permit comparisons over time or across market segments [Parkin & King, 1995:595]. Consumers drive economies, by being responsible for over two-thirds of all economic activities. Expenditure is heavily influenced by what consumers believe will happen in the future. Current income is the primary determinant of products such as food for a family, but consumer confidence about future income is essential in understanding purchases of vehicles and other durable goods. Consumer confidence is a main factor influencing whether consumers will increase their debt levels or defer to pay off debt [Kaufman & Barnes, 2001:C1 and Parkin & King, 1995:11]. A case in point might result in a mother giving her child less pocket money because of high inflation rates and low consumer confidence levels. It is possible that the economic climate will influence the amount of money that parents spend on their children or the level of pocket money that children receive [Brassington & Pettitt, 1997:243]. It is also important to examine consumers’ wealth and credit. Wealth, measured by assets or net worth, is correlated with income. The government and private research organisations collect many statistics on income but relatively few about assets or net worth [Kolitz & Quinn, 1997:17]. Thus, it is more difficult to target consumers and / or their children based on wealth. Marketers usually use income as a proxy for wealth. 68 Credit extends the income resource at least for a period of time. Actually, because the cost of credit must be subtracted from the consumer’s total resource availability, credit reduces the ability to buy goods and services in the long run. In other words, the Millennial Generat...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online