Changing Customer Needs & Spending Patterns
- Markets and marketing strategies are constantly changing as a direct result of the changing wants/needs of customers, which affect their spending patterns
- There are many different reasons for changes in customer spending habits and patterns
- There are many different reasons for changes in customer spending habits and patterns
- Businesses that conduct ongoing market research are able to identify and interpret the changes that are happening in markets
Diagram of Reasons for Changes in Spending Patterns
If businesses fail to respond to changing customer needs, then they are likely to fail
Changes in tastes and fashions
- Trends in some markets can change very quickly
- E.g. Wide-leg jeans are now more fashionable with Gen-Z customers than 'skinny' jeans worn by Millennials
Change in disposable incomes
- High unemployment or inflation may lead to customers to buy cheaper products, e.g own brand breakfast cereal
Demographic changes
- Populations in most developed countries are becoming older
- Demand for products that meet their needs has driven many market changes
- E.g. Sales of specialist travel insurance for mature holidaymakers has increased
Global influences
- The arrival of well-known international brands can change demand and purchasing patterns in a market
- Increased travel, support from celebrities and extensive promotional activity drive demand
- E.g. American fast food chains now dominate the market for fast food across Europe
Changes in technology
- New technology makes old technology less desirable or obsolete
- E.g. Products such as smart speakers are replacing sales of radios