Long-term forecasting Long-term forecasting is the process of analysing and evaluating trends that can be identified by canning a vatiety of sources for information. Ir is a fashion which lasts aver two years. When scanning the market and the mers, fashion fore sters must follow demographics of certain areas, both urban and suburban, as well as examine the impact on retail and its consumers du Long-term domestic demographics, shifts in the structures, consumer expectations, value to the economy, political system, environment, and culture. secks to identify: major changes in international and fishion industey along with market and impulsion to. buy, new developments in technology and science, and shifts in the economic, political, and cultural alliances between certain countries. The: are many specialized marketing consultants that focus on long-term and attend trade A book of basics shows and other events that notify the industry on what is to come. Any changes in demographics and psychographics that are to affect the consumers? needs and which will influence a company's business and particular [niche market] are determined. Demography is the scientific and statistical shedy of populations, including of human beings. As a very general science, it can analyze any kind of dynamic living population, i.c., one that changes over time or space Psychographics is the shudy of personality, values, opinions, attitudes, interests, and lifestyles. This area of research focuses on interests, attitudes, and opinions, psychographic factors are also called IAO variables.Short-term forecasting Shor-term forecasting focuses on current events both domestically and intemationally as well as pop culture in order to identify possible trends thar can be communicated to the customer through the seasonal color palette, fabric, and silhouette stozies. It gives a modern twist to a dlassic look that intrigues our eyes. Some important areas to follow when nning the environment are: current events, art, sports, science and technology. Short-term forecasting can also be considered fad forecasting, Responsibility for trend forecasting Each retailer's trend forecasting varies and is mainly dependent upon whether the company is a wholesale brand or private label developer. "Every season, there are hundreds of designers showing breathtaking collections that the average consumer will never see. What does matter 1s who sees them—the in-house designers and buyers at fast fashion retailers, people who are paying close attention, identifying and predicting which styles, patterns and cuts will appeal to the average woman.” Larger companies such as Forever 21 have their own trend departments where they follow the styles, fabrics, and colors for the upcoming seasons. This can also be referred to as vertical integration. A company with its own trend department has a better advantage than those who do not because its developers are able to work together to create a unified look for their sales floor. Each seasonal collection offered by a product developer is the result of trend research focused on the target market it has defined for itself.Product developers may offer anywhere from two to six seasonal collections per year, depending on the impact of trends in a particular product category and price pot. Women's wear companies are more sensitive to the whims of and may produce four to six lines a year. Men's wear companies present two to four lines a year, and children's wear firms typically present three to four seasonal collections. lor each season a collection 1s designed by the product developers and is based on a specific theme, which is linked to the color and fabric story. A merchandiser also plays a key role in the direction of upcoming trends. Different from developers, merchandisers have much more experience in buying and are knowledgeable in what consumers will be looking for. ‘The designer takes the particular trends and then determines the styles, silhouettes and colors for the line and garments while creating an overall theme for the particular season. WHY FASHION FORECAST IS IMPORTANT? e It is impossible to ask all consumers what they will want to wear next season or year. Therefore designers and merchandisers must anticipate their wants and needs by being aware of what és going on in the world and anticipating how these events and conditions will affect * Every executive, designer and merchandiser in the fashion industry must be involved with research and analysis. They continuously study the lifestyle of consumers, shop the market, and read trend and design reports, magazines and new papers in order to understand consumer and forecast what they might want to buy. This research is absolutely necessary to make intelligent planning de regarding design, manufacturing, and sales,Fashion designers also follow fashion books to study forecasts. ervices, collection seports and trend Textile and fashion designers use many different resources to analyze trends because they want their designs to fit mto the mainstream of 3 A book of basics a) Noting the life style of men, women, children who are their customers. Researching sales statistics to establishing trends Evaluating the popular designer collection to find silhouettes, fabrication 1D. Observing street fashion and keeping up with current events, the art, the mood of the public. colors, ee AeForecasting and trend analysis plays a vital role in the fashion industry and in brand development, The business is continually looking ahead and forecasting is about identifying, evaluating and predicting growth in the industry’s target markets, as well as developing brands through promotion and retail Forecasting skills are used in a diverse range of activities, such as seasonal change, new of re-launched products, re-packaging, display, garment agencies of store concessions. Analysis of developments, trends and markets will enable you to influence the future direction of RASMION and style based product, through your understanding of the mechanics of the fashion cycle and its application to the fashion industry. It will introduce you to fashion forecasting and its application to the inspired design industries. You will develop an intuitive and intelligent h to predicting future fashion trends, accoss a range of products from collections to interiors. ‘This will develop research skills in historical context, consumer trends and buying patterns, fads, crazes and cults, all of which play a pact in the analysis of style movements. As well as learning to collect and use data, including financial graphs and marketing information, the progression develops design skills in creating color palettes, surface and fabric trends and concepts, form and silhouette changes, and product shifts. Fashion is a style that is popular in the present or a set of trends that have been accepted by a wide audience. But Eshion itself is far from simple is a complex phenomenon from psychological, sociological, cultural, or commercial points of view. TE i cosice Chan, Wie anne nes hie aA CSTC ER er ee ae RE ye ee ee a ee So ee of it). Tt is a process that spans shifts in color and styles, changes in lifestyles and buying patterns, and different ways of doing business, What appears to b near random activity is in fact a process of negotiation between the industry and the consumer and between the various segments in the supply chain. Fashion as a Sodal and Psychological Response Defining, fashion means dealing with dualities because clothing simultaneously conceals and reveals the body and the self. Clothing choices expeess personal style and individuality but also serve to manipulate the public image to fit situations and the expectations of others. ‘The entine of BA is sparked by the dual goals of imitation and differentiation, of fitting in and standing out, of following the leader and being distinctive. Human ambivalenice—conflicting, and contradictory yearnings finds an outlet in a capitalist marketplace as “appearance- modifying” goods. ‘Through a process of negotiation between elements of the industry and between the fashion industry and the consumer, ambiguous styles become accepted a fashionable. Clothing simultancously conceals and reveals the body and the self, Clothing choices express personal style and individuality but also serve to manipulate the public image to fit situations and the expectations of others. Fashion as Popular Culture Defining fashion means operating within the domain of popular culture, Unlike high culture (fine art, classical music, and great literature), popular culture often seems trivial and transient. Popular culture invites scepticisms because it sometimes seems extreme and frivolous. For the same reasons, it is difficult to te seriou ange is never entirely arbitrary, but homible things are sometimes in vogue. When a journalist writes about “4 follies” and lists fashion’s failed trial balloons, the whole enternrice tal on asliohtly silly nininterestinearbitrary, but horrible things are sometimes tn vogue. When a journalist writes about “| follies” and lists fashion’s failed trial balloons, the whole enterprise takes on a slightly silly uninteresting. When a fashion commentator likens himself to the kid in the story “The Emperor's New Clothes” because he wants to stand up in fashion shows and yell “The emperor is naked?” then even industry insiders are questioning fashion’s direction. Most people invest their time, interest, and dollars in popular culture. The study of popular culture-the content and people’s relationship to that content- has attracted the attention of scientists and scholars. Some very serious anthropologists, psychologists, and sociologists have written about and theorized about tts mechanisms of change. Fashion As Change Defining fashion as change captures the charm of novelty, the ma" the spirit of the times, and the pull of historical continuity is not a phenomenon restricted to apparel. It is present in the design of automobiles and architecture, the shifting popularity of cookery, the development of technology, and the buzzwords of business management steategies. One-day people are driving metal boxes, the next, rounded metal eggs. One day few people are cating oatmeal; the next day almost everyone is because it has been declared a health food. Once no one decorated using the colors and crafts of the Southwest, then everyone did. Every few years a new management strategy is touted as a breakthrough only to be replaced by another one a few years later. The internet was once an information network for everywhere happen. cientists, maw it reaches into offices, homes and even to mobile phones Understanding fashion helps explain how these transformations~ ears “Ty ei _ r everywhere. Understanding fashion helps explain how these transformations happen. Fashion as a Transfer of Meaning Meaning exists in the | “The very chanaterof fashion denaands that it cultural environment. Designers, | hold be exerstsed at ame time aly by a marketers, and the press transfer the | P92" of the given group, the great majority = being merely on the road to adapting it”. — meaning to a consumer good and Georg Sisumel (1858-1918) increase its visibility. The consumer fetches the meaning out of the marketplace in the form of goods and constructs his or her own personal world. Nor all goods catch the attention of or find favour with consumers. Some meanings are rejected initially and are then taken up later. Some meanings are recycled over and over. Undesirability is designed into the proce: fated in its many appearances plays aconstant role in the evolying cultural environment. Fashion as an Economic Stimulus More than an abstract | clothes canal be relied on to wear aut fast concept, is an economic | enough, something must be formd that will entity. Planned obsolescence powers | nar oat fasers that something is arhat we call the economic engine of Wearing clothes until they wear out or wearing the second-hand clothes of more fickle buyers are acceptable strategies for dressing, but they omit the pleasure in new clothes and the novelty in new looks. | goods requires the ability to mix aesthetic concerns and A book of basics market mindfulness-that is, mass-produced fashion is the product of negotiation within and between the sub worlds that make up theA book of basics market mindfulness-that is, mass-produced fashion is the product of negotiation within and berween the sub worlds that make up the industey. Fashion and Gender Differences Where apparel is concerned, men and women have not been playing on the same field. Beginning in the 19th century, men’s clothing has exhibited greater uniformity and a lack of decorative elements. Men rejected the social distinctiveness of dress in favour of “occupational” clothing with similacity in cut, proportion, and design. Women, in a relatively weaker social position than men, used fashion as a field where they could vent their “individual prominence” and “personal conspicuousness” By the 1930s, fashion commentators were secing a change-the breakdown of social hierarchies and the “ever increasing socialization of women”. These commentators began asking if these changes in the lifestyles and economic status of women T would lead to the same reduction in clothes competition that had occurred among men. Only time would tell.Fashion |rends the An innovative look appears in the street, on the runway, or media appreciations to a trendsetter’s ability to go ahead of current ignoring trends and yet anticipating them. ‘lhe look has the appeal of “newness” because it has been missing or scarce in the marketplace. A trend is characterized by a building, awareness of this new look and an accelerating demand among consumers. A study of fashion change shows that new looks rarely come out of the blue. Instead, fashion is a logical evolution from a precursor, the next step in building on a successful trial balloon, a response to social change, or an expression of cultural drift Exolution of a Trend ‘Tracking trends is very much like watching weather patterns. A warm and a cool air mass collide, and the results may be a tornado and golf ball-size hail or just rain and gusty winds. Lawrence Samuel, cofounder of the marketing consulting firm Icon culture, Inc., spelled out the predictable and unpredictable stages in the evolution of a trend (“Will cigars,” 1997), The three stages arc: 1. Pringe-a stage when an innovation arises and the trendiest consumers and entrepreneurial firms begin to participate 2. Trendy-a stage when awareness of the trend grows because early adopters join the imnovaters to increase the visibility of the teend and the most forward brands and retailers test the concept. 3. Mainstream-a stage when more conservative consumers join in, visibility continues to increase, and corporations and brands capitalize on the growing demand‘Trend Movement. ‘Tracking tend movement may require only a few points to plota line and detect a direction. The trend may be moving up from the street through levels of consumers from the most avant-garde to the more mainstream or down from an extravagant one-of-a-kind couture creation worn by a celebrity to a knockoff at the local mall. Morizontal movement occurs when more and more people progressively adopt a style as that innovation diffuses through the market segments, ‘The cyclical nature of fashion can be seen in the recycling of fashion ideas-such as the retuen of khaki and World War II movies late in the 1990s. Fuelled partly by nostalgia among generations old enough to remember and partly by the younger gencration’s desire to experience the music and fashions of another era, pop culture seems to circle back, picking up speed each time. Looking for these movements, placing observations within a theoretical framework, and visualizing the shape and direction of the change enables forecasters to predict BRIM Girecuion and the speed of change Trend Contagion The transmission of trends has been likened to the spread of a virus. Malcolm Gladwell, a writer for the New Yorker, used this metaphor when he spoke to the International Design Conference about creating design trends that are “contagious”-spreading quickly through the consumer population to reach “epidemic” proportions. He urged manufacturers to aim for “sticky” looks with flu-like staying power becaus looks that quickly disappear. consumers do not want Gladwell’s comments parallel the concept of memes-self- replicating ideas or bits of behaviour that move through time and space without continuing support from their original source. Memes can be advertising slogans, catchy bits of dialogue from a'I'V show, or any concept that establishes its own repetition by appearing in many formats. The more copies of the meme, the more likely that it will replicate through time and space. A product, a look, ora brand can become a meme. The characteristics of a meme are very similar to a trend: novelty and vividness. \ meme has one additional important characteristic: it must catch on in a way that favours the leaping of the meme from format to format at a rapid speed.person visually ‘Trends must be visible to possible adopters in order to spread spread through word-of-mouth among persor or verbally recommends a new fashion to friends and works when one acquaintances. Buzz-defined as excitement about something new-is created when trends pas through media networks, moving from one format to another 10 Receiving, information on a trend in this way gives the consumer a feeling of being “in the know” because of insider information from the med Buzz lifts whatever people in the media are currently talking about to a new level of awareness. The Internet speeds up the transmission of buzz by pre empting, traditional media-that is, by breaking news about celebrities, new: products, new shopping venues, upcoming movies, and other such happenings before the items can appear in traditional channels (newspapers, magazines, television, radio, and movies). Public relations (PR) executives try to create buzz by planting information on the Internet and other “under the radar” kinds of campaigns. \s consumers rely more and more on non-traditional channels for information, hype-the artificially generated PR form of buzz-becomes less influential and buzz more influential for trendsetters and carly adopters. ia choice. Buzz certainly exists on the Internet as trends are transmitted globally in an instant through Web sites and e-mail. Building on that concept is a new form of marketing aimed at getting customers to try a software product, share it with the people they know, and thereby propagate the product on behalf of the company that created it, Called vical marketing, the process has Deen called a “highly infectious digital sneeze”. Visual [Link] it applies to apparel means launching a product by stimulating the curiosity of the target audience with unbranded posters ot cryptic messages on Web sites and by infiltrating underground clubs or placing ads in non-mainstream magazines. The target audience is young people who have grown up with traditional dite Instead theu nrefer to Hketino and na Innorr want ta he markerns rg He, ee oN ae et A ed ae tre feet me nee Ce infiltrating underground clubs or placing ads in non-mainstream magazines The target audience is young people who have grown up with traditional marketing and no longer want to be marketed to. Instead, they prefer to discover products through word-of-mouth. Companies see these consumers as culturally creative trend initiators. Levi’s sub-brand, Red Line, and Lee’s Dungarces were both successfully launched in this way re ALEThe tempo of innovations in all ficlds has increased phenomenally since the Industzial Revolution-new trends emerged, some established trends were interrupted, and some accelerated. The Industrial Revolution was based on the invention of machines that could supplement or amplify manual work, The Information Revolution, powered in part by computer technology beginning in the late 1940s, had a similar effect on speeding up the emergence of innovations and accelerating change. Executives can do little to change an established trend. Forecasting, allows them to prepare, adapt, and adjust their strategies to be in harmony with established trends ‘The decade of the 1990s is instructive in terms of fashion Some of the change that rocked the apparel business iti the decade can be traced to cultural shifts such as women entering the workforce, becoming time pressured, and reprioritizing their interests; other changes to the values and preferences of the baby boom generation played out in consumer behaviour. Social rules governing appropriate attire had begun breaking down in the late 1960s, but the process continued until casual locks became acceptable for almost all occasions. At times, economic bumps and international turmoil played a part in dampening apparel spending, ‘The industey, attempting to reactivate demand, speeded up the flow of “new looks” into mass and offered “options” in the service of individuality. Increased coverage of “soft” news by the press drew attention to runway extremes and unleashed general criticism of the y Consumers became confused by mixed signals and disillustoned with the style guidance of designers, journalists, and the stores, voting with their dollars to reject highly touted looks. Some consumers began to play it safe by choosing classic clothes in black and other basic colors. Even more disturbing for the industry was the finding by a research firm that the core market segment 12for apparel-women between 25 and 44-held back on buying clothes beginning in 1996 while diverting spending to travel, fitness, and other leisure activities (NPD: Clothes buying,” 1999). With seasonal fashion dimming as a driver in refurbishing wardrobes, consumers concentrated on getting the best price, even if it meant waiting until markdowns. These changes boosted the success of some parts of the ERA industry. ‘The Gap and active wear manufacturers soared on the casual trend and the relaxation of social regulations regarding appropriateness. ‘The changes in consumer behaviour and the effect of the economy on consumer confidence magnified any missteps by the fashion industry, leaving some to rethink, reorganize, and relaunch. All of these changes relate to some aspect of a evolution, cultueal change, consumer preference research, competitive analysis, and trend Forecasting professionals were very active during, the decade of the 1990s as prominent advisors to the industry. Marketing consultants counselle ag women what they wanted, a strategy that led to the boom in selling, basics. When that boom was over, the consultants got some of the blame. Critics pointed out that the bare-all slip dress could never have come from a focus group. Melrose Place cevived the miniskict success suit when some trend forecasters called the category dead. Consultants seemed to be missing the vital quality of novelty and vividness that make: ‘ool and hot at the same time. The forecaster walks the same difficult line as the designers manufacturers, and retailers-the line between fashionable and functional, between too funky to be wearable and too boring to be fun. Poreaasting Specialties Forecasting is more than just attending runway shows and picking out potential trends that can be knocked off at lower prices (although that ts part of it). It is a process that spans shifts in color and styles, changes in lifestyles and buying pattems, and different ways of doing business. What appears to be neat random activity is in fact a process of negotiation between the fashions RE rn. c..4appcars to De near random activity 15 in fact a process OF negotiation between the fashions Forecasting Defined Pashion forecasting has been compared to chasing the future with a butterfly net. Bur spotting trends is not that difficult for people who immerse themselves in popular culture and trade news. Forecasters pluck emerging trends out of public information by becoming sensitive to directional signals that others miss. Faith Popcorn, one of the forecasters most often quoted in the media, calls this “brailing the culture”-Looking for the new, the fresh, the innovative, and then analysing the whys behind it. 13, A book of basics Forecasters vary in the methods they use, but all are looking for an apparatus that helps them predict the mood, behavior, and buying habits of the consumer. Because trends signal the emerging nee\ ons of the consumer, canny manufacturers and retailers capitalize on their potential for turning a profit. Forecasting is not magic practiced by a talented few with a gift of sccing the future. It is a creative process that can be understood, practiced, and applied by anyone who has been introduced to the tools. A professional does not proceed by rule of thumb or trial and error but by mastery of the theory and practice of the field, Forecasting provides a way for executives to expand their thinking about change, anticipate the future, and project the likely outcomes. . wants, and aspicaand practice of the field. Forecasting provides a way for executives to expand their thinking about change, anticipate the future, and project the likely outcomes. cutives use forecasting as input for planning, Marketing managers position products in the marketplace using short- and long-term forecasts. Planners of competitive strategies use BRM cechciques ta look at market share and the position of competitors in the marketplace. Product developers, merchandisers, and production managers use the short-term trend forecasts of color, textiles, and style direction to shape collections. Visualization and Forecasting, In the nactowest ense, FORMERS attempts to project past trends into the future. A trend is a transitory increase or decrease. Some trends have lasted for millennia-human population growth, for example. But all trends have the potential to oven talie elas denen and dartine NUMBER OF ADOETERS Visualization helps forecasters understand and communicate the movement of fashion and project future directions. Fashion trends are usually dassified by duration and penetration, visualized as curves with time on the bottom axis and consumer adoption rates on the vertical axis In this way it is easy to show the difference between the shortest trends, called fads, and thelongest, called classics. In the same way, forecasters visualize fashion cycles and waves. Cycles have a fixed, regular periodicity. Economic and business cycles have been proposed but are considered controversial. Variations in the length and depth of “cycles” make the term a misnomer. No fixed, regularly recurring: cycles have been identified, and used to accurately predict the next cycle in business or Instead, it is more accurate to call recurring patterns a long wave phenomenon. Long wave refers to any entity (e.g., prices or styles) with movement that rises and falls with differences in duration and magnitude, velocity, and momentum. across periods. ‘his wave model is reflective of movement in social spheres, including Steps in Developing a Forecast Forecasting consists of tools and techniques applied ly. Just as smportant are human judgment and interpretation. ‘The steps in developing a forecast are: Step 1: Identify the basic facts about past trends and forecasts. Step 2: Determine the causes of change in the past. Step 3: Determine the differences between past forecasts and actual behavior. Step 4: Determine the factors likely to affect trends in the future. Step 5: Apply forecasting, tools and techniques, paying, attention to issues of accuracy and reliability. Step 6: Follow the forecast continually to determine reasons for significant deviations from expectations. Step 7: Revise the forecast when necessary A trend forecast should identify the source, fundamental mechanism, direction, and tempo of the trend, ‘The most valuable currencies in today’s competitive climate are information and leaming. Information is a business asset that can be managed like any other. Executive decisions are enhanced in an information-rich environment. [owever, obtaining information is only the first step in the process of organizing, analysing, understanding. and learning from it. Information is easv to find but difficult toA trend forecast should identify the source, fundamental mechanism, direction, and tempo of the trend. The most valuable currencies in today’s competitive climate are information and learning, Information is a business asset that can be managed like any other, Executive decisions are enhanced in an information-rich environment. [owever, obtaining, information is only the first step in the process of organizing, analysing, understanding, and learning from it, Information is easy to find but difficult to sift, frame, and integrate so that leaming can take place. Forecasting is the process that teanslates information into a form that allows learning to take place. 15Forecasting in Planning & Scheduling Short- and long-term forecasting has a different time horizon within the manufacturing cycle .The lynch pin in apparel planning and scheduling is the manufacturer. The forecast is a rolling one that begins with a long-term forecast-in this context a forecast is usually for 12 months but can be as short as 6 months to as long as 18 months. The forecast is developed by the sales and merchandising managers using input from retailers, marketing representati les history analysis (one to three years of data), and market research, ‘This working, long-term forecast micrors the manufacturer's business expectations in terms of lines and styles to be produced each month. The short- term forecast includes both basic and ‘oods detailed dowa to weekly production by style, color, and size — | assures the timely delivery of merchandise to the retailer. ‘The apparel manufacturer’s long-term forecast traces the planning and scheduling process forward to the retailer because it is prepared before orders are received. Orders ace shown as input to the short-term forecasts. The quality of the long-term forecast can be measured by comparing expected orders with orders received. ‘Tracing the planning and scheduling process backward, forecasts and orders feed back to the textile manufacturer. A process very similar to the one in apparel manufacturing occurs at the textile manufacturing level. The time period from initial forecast to delivery of finished piece goods to the apparel manufacturer is between 6 and 16 months, Tracing the proc backward one more step leads to the yarn and fibre manufacturers, where a similar forecasting process takes place. Industry fashion trends enter the model as input for the retaile decisions and as patt of planning at the other stages of apparel, textile, yarn, and fibre manufacturing. Color forecasting is typically done 20 to 24 months 16ahead of the target-selling season. Textile development is typically done 12 to 24 months prior to the target-sclling season. Intemational fabric fairs show new trends in fabrics one year ahead of the target-selling season. All these forecasting activities are aced at having the right product at the right time to meet customer demand. Long Term Forecasting © more than 2 years ahead of selling, n cycles nds Retailers Trends in the Aris aA Designers & 4 ‘Weavers & Manufactures Knitters + Design Concent & yar Producers [ih ratricpator® = ‘Yarn suture & Pros Fiber Textures Companies Short Term + Fe Sete ColoeTrenae Time up to 2 Years Ahead of Selling Season. Time up to 2 years Ahead of Selling, Season ‘To get explained with the Forecasting ideas, the below activities may help you for a self-learning and practicing Exploit 1 — Small Changes ‘Trace the evolution of men’s in the twentieth century Working within a narrow band of allowable fashion change, men’s suits have trends on silhouette, fabric, and details still displayed the influence of Use primary sources-publications from the time when the clothing was new. Collect examples including, photographs of celebrities, newspaper ads, and offerings in mail-order catalogues. Identify the aspects of the suit that vary across time. How much variation is there between extremes? Do any aspects vary together as a recognizable pattern? Observing the details in the evolution of men’s suits helps sensitize the eye to subtle variations in styles. Exploit 2: Prescription for RecoveryExploit 2: Prescription for Recovery Locate the June 21, 1995, WWD story on “A 12-Step Program to Revive ””, Analyse the suggestions. Were any carried out? To what extent did these changes “rev ive MME > Ace chore any clements of the recovery program still left undone? Which points related to the way industey does business? Which to the system? How do actions taken by the industry impact the dynamics of -A book of basics Exploit 3: Megatrends Locate forecasts for the “mega trends” that will affect the furure are usually available in book form from well-known forecasters 2 Demographics Such foreca or summarized in newspaper and magazines articles. Ameri magazine is an excellent source for this kind of information. How will thesi trends impact the apparel industry? Formulate two alternative futures-one as if the mega trend comes to pass just as forecast, one where the mega trend happens as but to a lesser degree than forecast. Exploit 4: Surfing for Forecasts Using one of the search engines of the Web and the keywords “fashion” and “forecast” locate sites with forecasting information. How often are the sites updated? What organization or company sponsors each site? Bookmark the best of the sites and begin to systematically check these sites periodically for updates. Rudes for Appropriateness What social rules governed fashion in previous decades? Collect oral histories from young adults, people in middle age, and older people During what time period were they children, teens, and young adults? Ask them to recall things they were taught about appropriate dress. What rules did they have to activities follow on special occasions, on dates, going to school, starting work? When did they notice a relaxation of some of these rules? «Are there any of these social customs that should be revived? What would be the effect on the apparel industry? Cover Stories Track fashion evolution by looking at the cover of a fashion magazine over the last decade. Libraries often have bound volumes going back decades for the most popular and long lived magazines. Since looking at all the covers would take too long, sample the issues by deciding on which month or months to examine in each year. Then, systematically look at those covers. Imagine the editor and art director carefullyInnovation For something to function as an innovation; the consumer must perceive the newness or novelty of the proposed. , it must seem different when compared to what already exists in the wardrobe, across the social group, or in the market environment. This degree of difference from existing forms is the first identifying characteristic of an innovation. Rogers (1983) identified characteristics that would help or hinder the adoption of an innovation: * Relative advantage is the perception that the innovation is more itisfactory than items that already exist in the same class of products. * Compatibility is an estimate of harmony between the innovation and the values and norms of potential adopter + Complexity auge of the difficulty faced by a consumer in understanding and using the innovation. © Trial ability is an evaluation of the ea making a decision. e of testing out the innovation before Observability és the degree of visibility afforded the innovation An innovation will be more readily accepted if it is conspicuous, better than other alternatives, easy to understand, simple to try, and congruent with the value s Marketing and merchandising focus on educating the consumer about an innovation and lowering barriers to its adoption. Sprit zing consumers with fragrance as they enter department store increases trial ability, ads showing how to wear the latest accessory reduces complexity, the fashion show illustrating how to coordinate new items demonstrates compatibility. Many other marketing, tactics are aimed rem of the consume: 19at lowering the barriers to the adoption of a fashion innovation. One other characteristic inhibits or encourages adoption of innovation perceived risk. A consumer, when considering something new and novel, imagines beyond the purchase to the consequences. ‘The consequences may involve: * Economic tisk-the risk of performance problems after the purchase, the risk that the purchase price may reduce the ability to buy other products, and the risk that the price wil fall after purchase + Enjoyment risk-the risk of becoming bored by the purchase or not liking, it as much as expected * Social risk-the risk that the consumer's social group will not approve. Some cool innovations ate, Digitad Printing: With digital printing, prints are directly applied to fabrics with printers, reducing water usage by 95 percent, energy reduction of 75 percent, and minimizing textile waste. This technique has been used by designers like Mary Katrantzou, Alexander McQueen and Basso & Brooke. Online Shopping Tools That Know Your Measurements Online retailers deal with ahigh percentage of returns due to poor fit, material quality satisfaction, and customer's just not liking what they get. Smart on-line shopping tools are being developed that have the potential to dramatically reduce returns and minimize shipping energy and waste in the process. MyShape has developed a patented technology that matches shoppers with items that correspond to their personal measurements and preferences. In 2009, Their Size less Dressing allows shoppers to skip the ze labels with the assurance that each niece of clothing they purchase will fitON eae R SOT aE SS eee eee ees Ee SME ape ee Tre a a fit, material quality satisfaction, and customer's just not liking what they get at a ae Smart on-line shopping tools are being developed that have the potential to dramatically reduce returns and minimize shipping energy and waste in the process. MyShape has developed a patented technology that marches shoppers with items that correspond to their personal measurements and preferences. In 2009. Their Size less Dressing allows shoppers to skip the size labels with the assurance that each piece of clothing they purchase will fit and flatter them. In the same vein, [Link], was launched by the retailer Hawes & Curtis. [Link] is a virtual fitting room with a shape-shifting robotic mannequin that takes body measurements and mimics a body's shape so that an exact fit can be seen. ‘The site has been such a success that online German retailer Quelle saw returns reduced by 28 percent. 20Smart Taitoving Direct Panel on Loom (DPOL) technology, also called Smart Tailoring was created by Indian designer Siddhartha Upadhyaya as a way to increase fabric efficiency (by and reduce (by 50 percent) to manufacture high-end garments. By using a computer attached to a loom, data such as color, pattern and size related to the garment is entered, and the loom cranks out the exact pieces — which then just need to be constructed. Weaving, fabric cutting, and patterning happen all at once. Brilliant. Not only does DPOL minimize immense waste of fabric, it also helps in saving energy and water by 70 to 80 percent. ‘There are more other innovations coming up like the Sensory Perception ‘Technology (SPI) which may help us to weave outa fabric directly using fragrances or micro molecules. ‘This will help the fashion industry to create fragrance garments wear outConsumer Adoption Process The diffusion curve is a visualization of group dynamics because it captures many individual decisions. In cach individual case, a consumer decides to accept or reject a proposed innovation. ‘The consumer's adoption process-the private decision-is performed with consideration of how the adoption will affect the way the consumer presents himsclf or herself to others and how others will react to the result, There are several versions of the steps in this mental process. ‘The original formulation of the adoption process by Rogers (1962) included the stages of: + Awareness-the stage at which a consumer first realizes that an innovation has been proposed. * Interest-the period when the consumer seeks information about the innovation Fashion Change Agems Rogers’s (1962) original model shows a very small group of innovators who begin the diffusion process followed by a larger group of opinion leaders. Together these consumers are change agents and they perform several important roles in the spread of innovation in their social group: * They communicate fashion trends visually and verbally. + They are relatively more knowledgeable and interested in fashion compared to others in their group. * ‘They have the aesthetic taste and social sensitivity to assemble a stylish look.When others recognize them for their abilities, they become influential group members who establish the standards of dress for others in the group. Change agents are effective because they represent the ideal within the social group. According to Rogers’s (1962) original formulation of the diffusion curve, innovators were expected to make up 25 percent of the total adopters; early adopters added an additional 13.5 percent. This model launched innumerable studies of the demographics and psychographics of innovators and opinion leaders, not only in the field of but in all product categories and many kinds of social systems Reviewed studies that had used Rogers’s (1962) diffusion curve as a theoretical framework id where apparel was the product category. She concluded that the research had failed to confirm the subtle gradations of adoption outlined by Rogers. Part of the problem was attributed to the multiplicity of terms used innovators, fashion leaders, and carly adopters-without clearly defining the similarities and differences between these terms. This lack of specificity means that the findings from. such studies are interesting and provocative but not as useful as they might have been if the terms had been defined. One thing is clear, change agents are important to marketers because they control the diffusion of an innovation. Rogers Adoption / Innovation Curves ‘The design divector for Levi's women’s wear jeans called this concept the “pyramid model.” “Explorers” are the first to try new things, whether it is getting a tattoo or wearing something weird:” visible” take the trend mainstream; and the trend reaches the “followers” about a year later. Whatever the groups are called-innovators or explorers; fashion leaders, opinion leaders, visible, or influential-they act in the early stages of adoption and lay the foundation for later mass acceptance of a trend. Retailers play a role as change agents in fashion diffusion.Retailers play a role as change agents in fashion diffusion. Designers and manufacturers propose many more innovations in a season than can be merchandised in the retail space available. Retailers control the flow of innovation into the social system by selecting among the proposed innovations the ones that will appear in the stores. Some high: and avant- garde boutiques are willing to present new innovations based on their own judgment and clientele. ‘They are analogous to the fashion innovators. Other more mainstream retailers are lke opinion leaders because consumers tum to their assortment, sales octates, and visual merchandising for stor 23informed advice and fashion ditection Innovators. Marketers usually identify innovators as people who buy new product innovations relatively earlier than others in their social group. In order to target such customers for product introductions, marketers need a profile of such carly adopters. The usual profile is of a young, educated, affluent consumer who is very interested in the particular product category. Bur is there a personality trait that predisposes people to prefer mew products? Innovativeness, the desire for new experiences, is such a trait. Personality traits affect general behaviours more than specific purchases, but they undedlie the ways Consumers approach, modify, simplify, and react to their marketing ‘environment. Innovative people can be segmented inte three groups, each with a different profile: “ognitive innovators prefer new mental experiences and enjoy novelty when associated with thinking and problem solving. + Sensory innovators prefer experiences that stimulate the senses, have an easy-going attitude toward life, rake risks, and participate in pleas able activities without thinking too much, and engage in dreaming and fantasy. + Cognitive-sensory innovators prefer both cognitive and sensory experiences, Fashion apparel has both cognitive and sensory components. Purely stylistic innovations such as a new silhouette, color, or derail make their appeal on sensory grounds. Innovativeness in clothing is related to enjoying dressing just for the positive feelings created and for the excitement of experimentation. New fibres and finishes, new ways to wear accessories, and novel coordination strategies are more cognitively appealing as problem solvers. Although all three types of innovative consumers buy new products and visit new retail stores earlier than other consumers, they vary in other ways. Consumers who prefer new mental experiences monitor more mass media channels, attend more to ads, and do more exploratory shopping such as browsing window displays than other consumers. Sensory innovators prefer ual to verbal information, whereas cognitive innovators are the opposite.Although all three types of innovative consumers buy new products and visit new retail stores earlier than other consumers, they vary in other ways. Consumers who pre new mental experiences monitor more mass media channels, attend more to ads, and do more exploratory shopping such as browsing window displays than other consumers. Sensory innovators prefer I to verbal information, whereas cognitive innovators are the opposite, Consumers who are first to make purchases and wear new styles often pay a premium price. They are thought to be less price sensitive and more affluent that those who buy later in the season. Researchers found another factor that influence early sales-the degree of confidence the early shopper has in the economic conditions. By comparing sales data from five 24divisions of a retailer, researchers were able to show that consumer confidence about the future state of the economy was a strong predictor of preseason sales The best predictor for in-season sales was the financial ability to purchase. Fashion Leaders. If innovators are change agents who first adopt a new fashion and make it visible within their sacial groups, how are fashion leaders described? Katz and Lazarsfeld (1955) sought to answer this question by interviewing women. If the women reported being, asked for advice about clothes or believed they were more likely than others to be asked for advice, interviewees were classified as fashion leaders. Katz and Lazarsfeld (1955) identified two kinds of fashion leaders, the glamorous woman who first displ expensive fashions and the woman who is influential face to face. When the /wiki/1820s_ia_Westeen_fashion characteristics of these self-identified leaders were compared to others, the fashion leaders were found to be highly interested in |, Sensitive to their impression on others, gregarious, and recognized as having qualities appropriate for leadership. ‘The researchers found that single, unmarried women with a high interest in fashion had more opportunities for fashion leadership than women at other points in the life cycle. However, women in the lower class were more likely to seek leadership outside their class. Influence takes place mostly among women of similar circumstances and real-life groups-that is, in naturally occurring groups of friends, colleagues, neighbours, and acquaintances. If people have similar stutudes toward HMMIIL the diftecence between leadec and followers is a matter of intensity and speed of adaptation. In this view, leaders are more susceptible to change and more interested in . eae)researchers found that single, unmarried women with a high interest in aa had more opportunities for fasion leadership than women at other points in the life cycle. However, women in the lower class were more likely to seek leadership outside their class. Influence takes place mostly among women of similar circumstances and ceallife groups-that is, in naturally occurring, groups of friends, colleagues, neighbours, and acquaintances. Tf people have similar attitudes toward fashion, the difference between leaders and followers is a matter of intensity and speed of adaptation. In this view, leaders are more susceptible to change and more interested in differentiating themselves from others, in terms of self-concepr, fashion leaders consider themselves more excitable, indulgent, contemporary, formal, and colourful. A fashion leader must be talented enough to sense the spirit of the and anticipate change in tastes, self-confident enough to make her own choices, and influential within her social group. Leaders also differ from llowers in terms of information seeking: Leaders and followers all use the time foll 25A book of basics same sources of fashion information, but leaders use a greater number of sources more frequently and more often preferred marketer- dominated magazines, and fashion shows. sources-window and in-store displays, Celebrities as Innovators and lafluential, Popular culture includes advertising, movies, television, musi magazines, and celebrity news. Popular culture serves as a source of new meanings and as a conduit to transmit those meanings to. people Slang expressions, lifestyles, sports and pastimes, personality and mood- popular culture is a visual dictionary of meanings. Mass media constantly revise the meanings of old goods and give meaning to new goods. In this way popular culture acts as innovator and as a distant opinion leader for consumer culture ‘The relationship between viewer and celebrity is as psychologically complex as any other relationship. Media performers create the illusion of interpersonal relationships with viewers. In today’s media-rich environment relationships of this imaginary sort are intertwined with media experiences. The real social world consists of the two or three hundred relatives, friends, and acquamtances a person actually knows. ‘The Camilla Belle in a 2009popular culture is a visual dictionary of meanings. Mass media constantly revise the meanings of old goods and give meaning to new goods. In this away popular culture acts as mnovator and as a distant opinion leader for consumer culture ‘The relationship between viewer and celebrity is as psychologically complex as any other relationship. Media performers create the illusion of interpersonal relationships with viewers. In today’s Camilia Belle in a 2009 media-rich environment relationships of this imaginary sort are intertwined with media experien ‘The real social world consists of the two or three hundred relatives, friends, and acquaintances a person actually knows. ‘The social world consists of celebrities and the characters they play. Soctal behavior and consumer purchasing can be influenced by media personalities because they act as advisors, role models, and ego ideals. For , Movies have been a great medium for showing clothes. Hollywood designers followed trends and set them. Music stars showcased in music videos have been influential in setting, and popularizing trends. Clothing styles wor by characters in television shows have excited demand for the same clothes in stores. The consumption of fashion good and intangible products such as fragrance is more involved than mere purchase behavior. Consumption is a cultural phenomenon and the designers, advertising executives, and press participate in creating our cultural universe by connecting meaning to consumer goods. Consumers construct their personal worlds by choosing the products that have meaning for them. In this process, pop culture has both 26direct and indirect influence on the consumer's ideas about appropriateness, beauty, and fashion, Followers Fashion followers include both the majority adopters who swell the diffusion curve to its highest point and those who adopt after that. After the peak, the number of new adopter’s decreases until all people who are interested in the innovation have had the opportunity to possess itor atleast try it. If the innovation # a major trend affecting a large number of consumers over several seasons or even several years, manufacturers and retailers still have an opportunity for profit at the peak of adoption and as the innovation reaches the late adopters. If the trend is a short-lived fad, then the time scale is much shorter and the potential for profit is better for manufacturers and cetailers pasticipating in the carly stages. For the forecaster, the waning of a trend signals the potential for adoption of a new innovation, one that probably already exists and is beginning its diffusion cycle. \ study may help to learn more, collect advertisements of apparels and their years and analyse the fashion trends at that time will be easy to make more expertise in this8 Fashion, FAD and Classic The terms “fad” and “classic” are frequently used in discussing fashion, but do they have a precise meaning? Fads have been defined in different ways: + As involving fewer people, of shorter duration, and more personal than other changes * As outside historical continuity-cach springing up independently with no forerunner and no successor. + As satisfying only one main need, the need for a new experience, and having little value once the newness wears off. Fashion is a popular style or practice, especially in clothing, footwear, accessories, makeup, body piercing, or furniture. Fashion is a distinctive and often habitual trend in the style in which a person dresses. It ts the prevailing styles in behaviour and the newest creations of textile designers. s¢ the more technical term costume is regularly linked to the term ", the use of the former has been relegated to special senses like fancy dress or masquerade wear, while "fashion" generally means clothing, including the study of it. Although aspects of can be feminine or masculine, some. tends are androgynous FAD Becau: A fad is any form of behavior that develops among a large population and is collectively followed enthusiastically for a period of time, generally as a result of the behavior being perceived as popular by one's peers 0or being deemed "cool" by social media. A fad is said to “catch on” when the number of people adopting it begins to increase rapidly. The behavior will normally fade quickly once the perception of novelty is gone Fashions are themselves of short duration when compared to long-term social changes. Fads are fashions of even shorter duration. The difference between fads, fashions, and classics can be visualized using variations on the diffusion curve. Classics are enduring styles that seem to reach a plateau of acceptance that endures for a long period of time. Fashion and fads share many of the same characteristics. Meyersohn and Katz (1957) offer a comprehensive natural history of fads identifying these distinctive characteristic: + Fads are typically confined to particular segments in society * — Unlike new social movements that create anew social structure, fads move swiftly through a subgroup but leave the subgroup itself stable + Fads offera simple substitution for some predecessor item. * Fads are trivial, not in terms of the emotion or functional significance of the item, bur in rerms of its life expectaney-a * — Fad is susceptible to being outmoded. + — The fad loses its stylistic integrity as it flows through society. + Feedback in terms of demand may stimulate a frenzied increase in production, leading to overproduction and rapid saturation of the market. Likely beginning points for fads include the upper classes and Dohemians because these groups represent a special kind of laboratory where experimentation can take place without threatening cogs whole, Many other observers of recognize the same source for ideas-the elite and the outsiders. Exporting a fad from the subgroup to a wider audience usually involves modifying the idea in ways that make it more acceptable to aLikely beginning points for fads include the upper classes and bohemians because these groups represent a special kind of laboratory where experimentation can take place without threatening society as a whole, Many other observers of fashion recognize the same source for fashion ideas-the clite and the outsiders. Exporting a fad fom the subgroup to a wider audience usually involves modifying the idea in ways that make it more acceptable to a broader audience. As a fad emerges from its cocoon in the subgroup, it undergoes developmental stages. First, the phenomenon is given a name, label, or slogan that hecomes a popular identifier. a a aa ae Classic \ classic fashion is a style that lasts for several seasons, sometimes even years, and is accepted by a wide range of people. Classics are those styles that you don’t even haye to think about. You just know they will be acceptable from one year to the next. Running shoes are a good example of a classic style Even people who have no intention of ever running own running shoes. 29AAROOK OF asics Granted, the details may change from one season to the next, but the basic design remains the same. A simple black dress, a worsted wool suit, a leather bomber jacket - these are all sic fashions that repeat themselves year after year. Apparel and other consumer products can be classified by the length of their life cycles. Basic products such as T-shirts and blue jeans are sold for years with few style changes. Businesses selling basic products can count on a long product life cycle with the same customers buying multiple units of the same product at once or over time. Fashion product life cycles last a shorter time than basic product life cycles. By definition, fashion is a style of the time. A large number of people adopt a style at a particular time. When it is no longer adopted by many, a faapa product life cycle ends products have a steep decline once they reach their highest sales. Sale: He The fad has the shortest life cycle. It is typically a style that is adopted by a particular sub-culture or younger demographic group for a short period of time. The overall sales of basic products are the highest of the three types of products, and their life cycles are generally the longest. Apparel products often have a fashion dimension, even if it is just color, As features increase in a product, the life cycle will decrease. Therefore, if you are designing a fabio product, you will want to have multiple products in line for introduction as each fashion produ Je runs its course. Some firms build their lines to include basic, fashion, and fad products in order to maximize sales. For example, with a sw business may have four styles that have styling and colors and are alw:The fad has the shortest life cycle. It is typically a style thar is adopted by a particular sub-culture or younger demographic group for a short period of time. The overall sales of basic products ate the highest of the three types of products, and their life cycles are generally the longest. Apparel products often have a fashion dimension, even if it is just color, As features increase in a product, the life cycle will decrease. Therefore, if you are designing a iain product, you will want to have multiple products in line for introduction as each fashion product's cycle runs its course. Some firms build their lines to include basic, fashion, and fad products in order to maximize sales. For example, with a sweater line, a business may have four styles that have classic styling and colors and are always in the line. Four additional styles may be modified every two years to include silhouette, length, and collar changes based on the current fashion. One of two short-cycle ot fad styles based on breaking trends may be intcoduced once or twice a tyles that a popular celebrity or sports hero is wearing are examples of and fad styles. 30v Consumer Segmentation Customer segmentation is the practice of dividing, a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests and spending habits. Customer segmentation, also called consumer segmentation or client segmentation, procedures include: + Deciding what data will be collected and how it will be gathered + Collecting data and integrating data from various sources + Developing methods of data anal is for segmentation + Establishing effective communication among relevant busine as marketing and customer service) about the segmentation units ( + Implementing applications to effectively deal with the data and respond to the information it provides Companies employing customer segmentation operate under the fact that every customer is different and that their marketing efforts would be better served if they target specific, smaller groups with messages that those consumers would find relevant and lead them to buy something. Companies also hope to gain a deeper understanding of their customers' preferences and needs with the idea of discovering what each segment finds most valuable to more accurately tailor marketing materials toward that segment. Customer segmentation relies on identifying key differentiatoss that divide customers into groups that can be targeted. Information such as a customers’ demographics (age, race, religion, gender, family size, ethnicity, income, education level), geography (where they live and work), psychographic Gocial class, lifestyle and personality characteristics) and behavioural (spending, consumption, usage and desired benefits) tendencies are taken into account when determining customer segmentation practices. By enabling companies to target specific groups of customers, acustomer segmentation model allows for the effective allocation of marketing resources and the maximization of cross- and up-selling opportunities. When a group of customers ts sent personalized messages as part of a marketing mix that is designed around their needs, it's easier for companics to send those customers special offers meant to encourage them to buy more products, Customer segmentation can also improve customer service and assist in customer loyalty and retention. As a by-product of its personalized nature, marketing materials sent out using customer segmentation tend to be more valued and appreciated by the customer who receives them as opposed to impersonal brand messaging that doesn't acknowledge purchase history or any kind of customer relationship. Traditionally a target audience would be defined as a segment of the population with certain demographic characteristics such as age, gender, ethnicity, and income-a consumer segment. Then, the marketing executive develops a positioning strategy, a unique marketing approach that: * Appeals directly to that consumer segment. + Differentiates the product from all others in the category. * Positions the product in the minds of the consumers as desirable for purchase Tt is important to understand what market segmentation is and how it ts used to determine a target or audience for goads and serv Markets are segmented to find groups of potential customers that best match your ability to profitably serve. The type or types of segmentation methods used possess the following charac + Measurable: Attributes such as buying power and the number of potential customers can be ascertained or measured * Substantial: Segments that have sufficient numbers tend to have profit potential. The most attractive segments should be the largest group with similar characteristics to focus target marketing efforts toward. For example, it would not make sense to target a market that was too small to be profitable. + Accessible: For a market segment to be attractive, a firm must be able to reach or contact that segment. A market that 1s out of reach or toobe profitable. Accessible: For a market segment to be attractive, a firm must be able to reach or contact that segment. A market that is out of reach or too expensive to reach or distribute to should not be considered. Differentiable: Different segments should respond to different offers; if they respond to the same offer they are not distinct segments. Actionable: [ffective marketing, strat s can be devised to appeal and 32satisfy the segment or segments chosen. Markets are segmented in two broad ways. The first is to consider the population of buyers in a desenptire manner, The second is to look at behatoural chacacterisucs of the market. Within these two methods or perspectives, there are four major or general characteristics or variables that are used to segment markets. The first variable is geographic descriptions of the market. This is a fairly steaightforward descriptive segmentation method, utilizing basic geographic measures such as nations, states, cities, regions, and neighbourhoods. Other factors that are related to geographic segments include climate, density of populations, and the rate at which populations are growing, The second basic segmentation variable is demographics, which is another descriptive segmentation method. Demographic segments utilize measurements of the market’s age range, gender, income levels, occupations, ethnicity, family status, and education level. For example, family status refers to whether a household’s members are married, have children, live at one location, and the stage of life of the members. If you visit the National Statistic website you should be able to find for example how many adults have access to the Internet or how many females live in Dorset. Marwell Zoo uses this sort of segmentation in order to identify the specific needs of key segments Demographic variables are commonly used in indexes and databases measuring consumers’ preferences for brands, products and media. See for example, the TGI (l'arget Group Indexes) where marketers can find detailed information as to who buys what. Recently, both demographic and geographic segmentation have been used in conjunction to create geo- demographic segmentation. CACI Market Analysis Group dev loped AC ORN pt eae iia lo me Sige woe oe ek mYneprrpenanatinnans to whether a household’s members are married, have children, live at one location, and the stage of life of the members. If you visit the National Statistic website you should be able to find for example how many adults have access to the Internet or how many females live in Dorset. Marwell Zoo uses this sort of segmentation in order to identify the specific needs of key segments. A ee ee ee ee ee a es Demographic variables are commonly used in indexes and databases measuring consumers! preferences for brands, products and media. See for example, the TGT (Target Group Indexes) where marketers can find detailed information as to who buys what. Recently, both demographic and geographic segmentation have been used in conjunction to create geo- demographic segmentation. CACI Market Analysis Group developed ACORN (a classification of residential neighbourhoods) a widely used source for cographic segmentation that uses 40 variables to identity for example what sumers within a specific neighbourhood eara and buy ‘The third basic segmentation variable is psyehogeaphic (Psycho- demographic) segmentation. This type of behavioural segmentation attempts to measure and categorize markets based upon what they value ot believe to be ethical or desirable, Other psychographic variables include the marker’s 33.