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How to Get 100% on the Knowledge Matters Consumer Behavior Simulation

I recently completed the virtual business consumer behavior simulation from knowledge matters. This is a fun, challenging simulation that tests students understanding of consumer behavior. I got a perfect score on it and you can too! Here’s some tips:

1. Understand Consumer Behavior Basics

There’s a lot to know when it comes to consumer behavior, but for this simulation you just need to understand the basics. A few key points to remember when it comes to your store layout and customer flow are:

  • Shoppers walk counterclockwise
  • Shoppers avoid upper and lower floors
  • Shoppers hate narrow aisles
  • Shoppers need to “orient” themselves

Keep these in mind when setting up your store layout, and it will push sales. If you want more layout tips, check out this chapter from Lumen Learning: https://courses.lumenlearning.com/wm-retailmanagement/chapter/why-it-matters-retail-image-layout-and-visual-merchandising/

2. Take Your time With the Prep Steps

The simulation offers several steps before you are expected to take the challenge phase. Take your time with these. They are designed to help you succeed in the challenge phase. They will help you understand how the simulation is set up and some keys to success are pointed out in these steps.

3. Change Store Layout Immediately

Okay, now you’re in the challenge phase. The very first thing you need to do is rearrange the store to make it shopper friendly. On the upper right side of the screen click Reports ► Product Info. Under this tab you will see Primary Purchase Type. This tells you essentially where to display the items. You will see three primary types:

Need: Position these items along the walls, customers are coming in specifically for these items

Complementor: These items are usually paired with a need, so place them near a need item. (ex. place phone cases near phones)

Impulse: Place these items near registers. Customers aren’t coming in for a phone charger, but they might buy one if they see it.

4. Simulate One Week at a Time

Your income statements are updated weekly, so simulating one week at a time is your best chance at success. Sim one week, see what has sold, what has not, and adjust accordingly. Also look at Reports ► Comments & Msgs. This report will let you know what customers are saying about the store. You may need to change displays and staffing accordingly.

5. Have Fun

Have fun with this simulation, you can always retake it. Try different approaches and comment below what worked well for you!

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VALS, PRIZM, and How Data Analytics are Changing Business

Today more than ever before, businesses are using consumer data to sell product. Everyone knows about the shady dealings of “selling data” and “big data”, but there are plenty of other ways data is found too. One of these ways is via consumers personality, behavior, and self-concept. A couple tools marketers can use (or anyone else!) are the VALS assessment, and the Claritas PRIZM database.

What is VALS?

VALS is an assessment that anybody can take from strategicbusinessinsights.com that puts American adults in one of 8 categories based on their answers to a nearly 40 question subjective test. This data allows companies to target customers, or to better understand the value system and beliefs of their existing customers. I took the test and fell into the “experiencers” catagory with a secondary catagory of “innovators”.

Experiencers are defined as:

  • Are always taking in information (antennas up)
  • Are confident enough to experiment
  • Make the highest number of financial transactions
  • Are skeptical about advertising
  • Have international exposure
  • Are future oriented
  • Are self-directed consumers
  • Believe science and R&D are credible
  • Are most receptive to new ideas and technologies
  • Enjoy the challenge of problem solving
  • Have the widest variety of interests and activities.

Innovators are defined as:

  • Are confident enough to experiment
  • Make the highest number of financial transactions
  • Are skeptical about advertising
  • Have international exposure
  • Are future oriented
  • Are self-directed consumers
  • Believe science and R&D are credible
  • Are most receptive to new ideas and technologies
  • Enjoy the challenge of problem solving
  • Have the widest variety of interests and activities.

This really gives a company a lot of info to help corner their target market. If the country is only divided into 8 segments, there’s a whole lot of people in each category. To narrow things down further, another way of defining customers in by PRIZM.

What is PRIZM?

PRIZM is a segmentation technology used by Claritas.com to help company find their target markets at scale. They can be defined by nearly 70 segments, and sorted by age, income, interests, geography and more. This is a great way for businesses to understand their customers, or just for the average American to better understand their neighbors.

Check out VALS here: http://www.strategicbusinessinsights.com/vals/presurvey.shtml

Check out PRIZM here: https://claritas360.claritas.com/mybestsegments/#segDetails

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Retail Careers That Don’t Involve Working in a Store

The Job: Email Marketing Manager

First up, Email Marketing Manager is a great job in the retail field that doesn’t involve working on the store floor and offers a lot of creativity for the employee. Many larger companies hire email marketing managers to create a return customer database and build relationships with past customers.

Job Duties:

The key duties of an email marketing manager are to:

  • Increase Brand Awareness through email campaigns
  • Engage with consumers
  • Drive profit
  • Design and implement marketing strategies
  • Copyright and proofread
  • Create analytics of performance
  • Generate Leads

Job Requirements:

Generally to become the email marketing manager for a company, a person needs prior experience in both the work field and in academia. The basic requirements usually look something like this:

  • Bachelors Degree in business or marketing
  • Excellent writing skills
  • SEO knowledge
  • Data analytics skills
  • Retail experience

Bottom Line:

Depending on where they are employed, an email marketing manager can make anywhere from $40k-$120k per year, and many large companies such as American Eagle and Bath and Body Works are looking for these key employees.

The Job: Purchasing Manager

Purchasing Managers are key players in any retail business. They bring in new products and orders. They can be anyone from the guy in receiving to a lady in a corporate office in a city you’ve never been to.

Job Duties:

Purchasing Manager duties can vary by business, but some of the basics include:

  • Buy Products for Company
  • Evaluate Supplies
  • Negotiate Contracts
  • Review Product Quality
  • Agents/Buyers

Job Requirements:

While some purchasing managers simply move up in the company, most have some educational background, usually a bachelors degree. Other requirements include:

  • Supply Chain Management Knowledge
  • Business Admin Degree
  • CRM and software experience
  • Strong communication skills
  • Data analysis skills

These are just a few options of retail management options outside of the actual retail store.