Describe about the Consumer Behaviour for Transitioning Loyalty Programs.
Customer segment: Senior Citizen
The first segment of the customer is related to the elderly citizen, who have the primary concern of maintaining well-being status of life and are updated about technological framework only to a certain limit. According to Lian and Yen (2014, pp.133), these age group customers are generally quite loyal in behavior and give the honest review regarding the customer service. They possess the most of the life experiences which help them to become conscious and alert customers in a present day. With aging, there is a loss of the mass of muscle which results in a decrease of strength and activity level. This results in their potential and ability to heavy exercise or for a longer duration. In contrast, it is seen that despite having low stamina, most of them prefer to do exercise and stay fit and thus will be attractive towards fitness industry (Thompson, 2014, pp.8). The senior citizens also prefer to watch pay TV like Presto, Stan, and Netflix. It is found that the older age groups are more addicted towards TV. They prefer to watch more of news than any other entertainment channels and hence are seldom attractive to pay TV industry as loyal customers (Kottak, 2016). With growing age they prefer less to eat outside food because of a health issue; hence eating out in restaurants are seen less among them. This is other words is indicative that elderly customer segment is not must attractive towards restaurant or food industry compared to another customer segment (Hwang and Ok, 2013, pp.121).
The second customer segment includes the generation of people advancing towards retirement age. These age group customers have sufficient money and prefer to spend on themselves and family, which in turn is indicative of maintaining a good lifestyle and attractive towards leisure time entertainment (Bowen and Chen, 2015, pp.415). The baby boomers generation in their retirement years seems to be more active towards exercise and fitness. They desire to remain fit in their retirement period by joining yoga, aerobics, and other workout programs and that they are much interested towards gym or fitness industry (Bowen and Chen, 2015, pp.415). It has been estimated that these group customers make around 60% of the audience in a week by watching pay TV. Most of them watching television for about Five to six hours per day through streaming online or using digital recording machine (Beehr, 2014, pp.1093). Importantly, around more than half of boomers wish to spend time and money on eating by trying new foods and restaurants. They prefer to go restaurants in the afternoon and especially in the evening. They prefer those restaurants giving coupons and membership facility. Despite, all these enjoyment, they give prior importance to their health (Beehr, 2014, pp.1093).
The third customer segment is referred to a class of people with increasing family household along with a huge amount of mortgage are the most tensed and unsatisfied group. Due to growing family and mortgage pressure, they have to spend money to a limit. These group customers neither have time nor money to spend on fitness and exercise by fitness classes or clubs (Beehr, 2014, pp.1093). They do prefer to yoga or exercise by themselves but are only attractive towards fitness industry if they can found a substantial discount or attractive offers (Kanchanapibul, 2014, pp.528). Due to lack of money, they preferred not to afford the pay TV and chose to watch the regular TV. Besides TV, they also decide not to eat in restaurants on a regular basis. This group of customers along with their family generally come to restaurants on weekends and special occasions only (Parment, 2013, pp.189).
The last and the youngest generation include the single adult customers. These age group customers are vivacious and energetic in nature. They used to spend a lot on their daily requirements. These age group customers are more prone to weight gain/obesity, while a few of them are least interested towards exercise (Schmeltz, 2012, pp.29). As they have sufficient money needed for their daily needs, most of them join a gym, fitness clubs, yoga and aerobic classes. This age group shows more interest in watching Pay TV which includes drama, reality shows, fictions, music, and sports. Having sufficient money, they are able to pay any amount for the pay TV (Kottak, 2016). They use to watch TV using a digital recording device and also watch online streaming shows (Kilian, 2012, pp.114). It has been surveyed that major customers of any restaurants include these single adult customers which around 60% or more. They used to enjoy with friends and family and usually in the night time (Parment, 2013, pp.189).
Introduction
One of the major demographic aspects which affect these three industries is gender segmentation (Wedel and Kamakura, 2012). The fitness mode and exercise types differ for both male and female. Female has less strength and stamina compared to male due to less lean muscles mass. Due to this, they prefer to do yoga, aerobics, cardio, and jogging; on the other hand, male prefers to do hard-core exercises.
According to male customers, exercise is like sports to them, whereas female it is a fitness and look issue (Mohd Suki, 2013, pp.726). It has been noticed that female customers are more regular in exercise than the male customers. In the case of watching Pay TV, female customers are ahead of male customers, as per the theory of market segmentation (Mohd Suki, 2013, pp.726). It has been surveyed that female viewers’ rules over the primetime shows which include mostly drama, series, and reality shows. Male customers seem less interested in watching Pay TV, and they prefer to watch seldom which includes sports and news (Hun and Yazdanifard, 2014, pp.2321). Similarly, for eating in a restaurant, male customers are found to be fonder compared to female customers. Female customers are more conscious of the hygiene, sanitation, and variety of food available in the restaurant (Rettie, 2012, pp.420).
Another demographic aspect of the customers is the marital status. It has been observed that married couples are less conscious about physical fitness than singletons (Mohd Suki, 2013). They choose to spend time with each other instead of doing exercise. Importantly, after marriage, the individuals have got more responsibilities which restrain them from doing physical activity. Also for the same reason, the married couples seldom get time to watch Pay TV; whereas the singletons are free to watching television at any time as revealed by analysis of Wedel and Kamakura (2012). Singletons are carefree in nature and hence eat in the restaurant whenever whatever and wherever they like. In contrary, the married couple is selective in nature and are particular about every detail of the restaurant (Beehr, 2014).
Employment status is one of a most determining factor in the customer behavior. Customers having low-income employment status are constrained with a limited amount of money, which ultimately affects their lifestyle (Kilian, 2012, pp.114). In contrast, customers with high employment status have the freedom to join any fitness programs, gym and work out centers. According to Kanchanapibul (2014, pp.528), the customers with low-income status cannot afford such fitness classes or trainer and hence depend on upon their regular exercise. The higher employment status customers have sufficient income to afford Pay TV, while lower employment status customers have to satisfy themselves with the regular satellite TV. Higher income customers go to restaurants on a regular basis for enjoyment and societal status, whereas lower income customers go to restaurants on weekends and special occasions. They prefer first on food pricing than on food choosing and opt for fast food centers than the service restaurant (Parment, 2013).
The most critical demographic factor which determining the customer behavior on the given three major industries is education. The personality and behavior of an individual are determined from their educational qualification. Education decides the living style and standard of an individual. Educated customers are more aware of fitness and exercise benefits and tend to do exercise on a regular basis. Uneducated or less educated customers have less knowledge regarding exercise and its associated health benefits. This leads to their less concern towards fitness and exercise, and they are not willing to do the workout. Moreover due to less educational qualification, they do not possess any job, and hence are more inclined towards TV (Han and Yoon, 2015, pp.22). Most of the educated customers prefer not to waste time on TV, rather do something fruitful. Informed customers go for the quality and eminence of the restaurant and verify every feature of the restaurant like ambiance, sanitation, quality of food, and hygiene condition. On the other hand, uneducated customers do not bother about all these aspects of restaurants because of their ignorance. Thus, they can be easily influenced and created by the service provider (Han and Yoon, 2015, pp.22).
Lastly, ethnicity is another major feature that decides the customer behavior. Ethnicity defines a group of people who categorize themselves with common language or religion or nationality or origin or social culture (Sekhon, 2015, pp.211). These types of customers choose to do the exercise with the people of their same ethnicity. In terms of fitness, they prefer the diet according to their culture and nationality. Also in the case of watching Pay TV, they select the channels related to their ethnicity (Beehr, 2014, pp.1098). Furthermore in choosing a restaurant to eat they prefer the restaurant having their ethnic feature giving them homely atmosphere.
Conclusion
In summary, the present portion of report illustrates the demographic factors that are responsible for influencing consumer behaviour. The demographic location are critical as they manage customer behaviour according to their requirement and preference. With the analysis, it was revealed that organization need to undertake these information for strategic designing of framework that in turn can help them in influencing consumerism according to their organizational objective.
References:
Beehr, T.A., 2014. To retire or not to retire: That is not the question. Journal of Organizational Behavior, 35(8), pp.1093-1108.
Bowen, J.T. and Chen McCain, S.L., 2015. Transitioning loyalty programs: A commentary on “the relationship between customer loyalty and customer satisfaction”. International Journal of Contemporary Hospitality Management, 27(3), pp.415-430.
Han, H. and Yoon, H.J., 2015. Hotel customers’ environmentally responsible behavioral intention: Impact of key constructs on decision in green consumerism. International Journal of Hospitality Management, 45, pp.22-33.
Hun, T.K. and Yazdanifard, R., 2014. The Impact of Proper Marketing Communication Channels on Consumer’s Behavior and Segmentation Consumers. Asian Journal of Business and Management (ISSN: 2321-2802), 2(02).
Hwang, J. and Ok, C., 2013. The antecedents and consequence of consumer attitudes toward restaurant brands: A comparative study between casual and fine dining restaurants. International Journal of Hospitality Management, 32, pp.121-131.
Kanchanapibul, M., Lacka, E., Wang, X. and Chan, H.K., 2014. An empirical investigation of green purchase behaviour among the young generation. Journal of Cleaner Production, 66, pp.528-536.
Kilian, T., Hennigs, N. and Langner, S., 2012. Do Millennials read books or blogs? Introducing a media usage typology of the internet generation. Journal of Consumer Marketing, 29(2), pp.114-124.
Kottak, C.P., 2016. Prime-time society: An anthropological analysis of television and culture. Routledge.
Lian, J.W. and Yen, D.C., 2014. Online shopping drivers and barriers for older adults: Age and gender differences. Computers in Human Behavior, 37, pp.133-143.
Mohd Suki, N., 2013. Young consumer ecological behaviour: The effects of environmental knowledge, healthy food, and healthy way of life with the moderation of gender and age. Management of environmental Quality: An International Journal, 24(6), pp.726-737.
Parment, A., 2013. Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of retailing and consumer services, 20(2), pp.189-199.
Rettie, R., Burchell, K. and Riley, D., 2012. Normalising green behaviours: A new approach to sustainability marketing. Journal of Marketing Management, 28(3-4), pp.420-444.
Schmeltz, L., 2012. Consumer-oriented CSR communication: focusing on ability or morality?. Corporate Communications: An International Journal, 17(1), pp.29-49.
Sekhon, Y.K., 2015. Ethnic consumer decision making. The Routledge Companion to Ethnic Marketing, p.211.
Thompson, W.R., 2014. Worldwide survey of fitness trends for 2015: what’s driving the market. ACSM’s Health & Fitness Journal, 18(6), pp.8-17.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.
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