marketing question
CASE STUDY 5F	DRAPER FURNITURE	CONSUMER BUYING BEHAVIOURBob and Ruth Draper knew they had to make some basic decisions about a new store soon. Their option for a ten-year lease on some property in Parramatta, NSW, would expire in less than a month. The property would then be available to anyone. The property seemed ideal for a large furniture store. At least 135 000 people lived within a 60 km2 area. A 10,000 m2 building in excellent shape occupied about one-third of the property; the balance could quickly be developed into parking. Prospective customers could see the building easily from the Great Western Highway. A 14,000 m2 furniture 'warehouse' operated by a chain was located close by. The Drapers considered this last point particularly important. From their experience operating a 5,000 m2 showroom (about 10 km away in Epping), they knew that most furniture buyers shopped around before making a decision. The proximity of the property to the competing furniture warehouse chain would facilitate this shopping behaviour. In addition, the chain was known to be a heavy advertiser on television and in newspapers. By attracting large numbers of furniture shoppers, the chain's advertising would also benefit any other furniture store located close by. Indeed, the Drapers had noticed that the chain faced a 'next-door' competitor at several of its other locations. The decisions facing the Drapers primarily centred around consumers. The Drapers knew from industry sources (and their own experience) that about 80 per cent of all furniture sales were made to consumers between the ages of 18 and 49. About two-thirds of all furniture sales were made to households of three or more people. Ruth described four segments that she thought were predominant: Young singles, aged 18-34 - Younger singles often buy inexpensive new and used furniture; older singles may buy good quality furniture. Many singles buy 'scaled-down pieces' to fit apartments. Most singles tend to buy...