Understanding Shoppers and shopping 

In today's marketplace, consumer shopping preferences and needs continue to fragment as a result of changes in demographics and value systems. These changes are making customers harder to define, categorize and reach. As population distribution shifts to the tail ends of consumer age groups, retailers face new challenges in satisfying these very diverse groups. Those retailers who gain a deeper understanding of select segments can more successfully address this fragmentation and the opportunities that exist. Research has revealed teens as wired, social beings that rely on connections with and approval from friends and peers. These young shoppers live comfortably with technology and are highly informed consumers. On the other hand, boomers are deliberate shoppers who rely on brand trust and have very diverse value drivers. These experienced shoppers seek convenience and a good value and are working their way up the technology curve. Data has revealed that there are two diverse shopper segments who clearly occupy two ends of the consumer spectrum. For the most part, these groups are very different in attitude and style, though they do share some common needs pertaining to service. In this world of extremes, some retailers specialize and address only teens, while others target only boomers. Still others may cater to both. By tailoring their customer strategies to their value proposition, retailers can tap into new and existing opportunities for growth and deliver more relevant shopping experiences. Purchasing data can help merchants distinguish which shoppers prefer which brands, and in which product categories. Identifying the categories where key shoppers may be more likely to prefer private label is an invaluable insight to drive store brand innovation, or to inform marketing initiatives. It's important to note that the key takeaway from this initiative is not a prioritization of private label over national brands or vice-versa. Rather, the key learning is that by understanding the brand preferences of priority shoppers to develop more targeted promotions, retailers will significantly increase sales, profits and relevance.