Answer to Question 1
B
Answer to Question 2
Every shift in consumer population patterns has major implications for retailers, especially when it comes to expenditures made for household products.
Population Growth: Retailers should avoid assumptions about homogeneity in behavior in the marketplace. Even minimal growth in the total population will mean opportunities for retailers. As population growth slows, successful retailers must focus on taking market share away from competitors, managing gross margin by controlling selling price and cost price and increasing the productivity of existing stores.
Age Distribution: Besides understanding the various needs of each age segment, retailers must also understand what motivates consumers to spend money. In addition to altering the types of products offered to these aging segments of the population, retailers will also need to shift the types of services provided if they are to gain the consumers' dollar. Some retailers are using the Internet to reach out to young consumers since most of them are more often at their computer than they are at the mall.
Geographic Trends: A common mistake made by retailers is to assume that all consumers in a certain geographic area have the same purchasing habits. Many of the leading retailers have developed micromarketing merchandising strategies.
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