2 age helps marketers to calculate the lifetime value

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2. Age helps marketers to calculate the lifetime value of a customer. 3. Changes in the age composition of a population correlate with significant shifts in values and demand. Concepts of age: 1. Chronological age – the length of time that has passed since a person’s birth 2. Biological ageing – changes taking place in the human functional capacity over time. It usually correlates with chronological age. 3. Psychological ageing – changes in people’s self-perceptions and cognitions. 4. Perceived age – age that a person feels. Often differs from the chronological age. Values that marketers should consider when marketing to older customers: 1. Autonomy – seniors want to lead active lives and be self-sufficient 2. Connectedness – seniors value the bonds with family and friends 3. Altruism – seniors feel that they would like to give back to the world and help others 4. Personal growth – seniors are still interested in trying new activities and experiences, and developing their potential. Comparison of selected age cohorts across marketing-related issues: Themes Generation Y Generation X Baby Boomers Purchasing behaviour Savvy, pragmatic Materialistic Narcissistic Coming of age technology Computer in every home Microwave in every home TV in every home Price-quality attitude Value-oriented: weighing price-quality relationships Price-oriented: concerned about the cost of individual items Conspicuous consumption: buying for indulgence Attitude toward brands Embracing brand Against branding Loyal to a brand Behaviour toward advertisements Rebel against hype Rebel against hype Respond to image-building hype Study unit 7 – Customer perception and learning Perception – the process by which people select, organise and interpret stimuli to the five senses of sight, sound, smell, touch and taste. It is the way that buyers interpret the world around them. The process of perception involves being exposed to a stimulus, paying attention to it and then interpreting its meaning in order to respond to it. Perception is: 1. Selective – we notice only a small number of the stimuli in our environment and of these, we attend to an even smaller number. This selectivity is called perceptual defence. It means that as individuals we are not passive recipients of marketing messages. 2. Subjective – we interpret the stimuli according to our unique personalities, biases and needs. 3. Based on the individual’s frame of reference – the individual’s act of perceiving is based on his experience. 13
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The perceptual process consists of four stages: 1. Exposure o Exposure – the degree to which people notice a stimulus that is within range of their sensory receptors. o Most of the stimuli to which an individual is exposed are “self-selected”.
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