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Consumer Behaviour - PPTX Unit 2

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20 views22 pages

Consumer Behaviour - PPTX Unit 2

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© © All Rights Reserved
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Consumer behavior in retail

business
• Consumer behaviour :
It is the understanding of how consumer makes decisions
to use their resources such as time, money and efforts
of buying, using and disposing goods and services.
In the retailing context marketers would specifically more
interested to know about the consumers shopping
behaviour which involves and understanding of
decision variables regarding when, where and what to
shop (shopping timing, choices of retail format and
store Etc..)
Factors influencing consumer behaviour

• 1.cultural factors :
a) culture: the set of basic values, perception,
wants and behaviours learnt by a members
of society from family and other important
institutions.
Culture is the most basic cause of a persons
wants and behaviour. Every group or society
has cultural influencers or buying behaviour
• B)sub-culture: a group of people with shared
value systems based on common life
experience and situations. Sub-culture –
qualities, religions, racial groups at
geographical regions.
• C) social class:
• Social classes are societies relatively
permanent at ordered divisions share similar
values, interest and behaviour.
• 2) social factor:
a) Group : two are more people who interact to
accomplish individual or mutual goals. A persons
behaviour is influenced by many groups. Some
are primary goods include family, friends,
neighbours and co-workers.
some are secondary groups which are more
formal and have less regardless interaction these
include organisation like religious groups. Prof
association and trade unions.
• ii) family : family members can strongly influence by their behavior.
Family is the most importance consumer by organization society and it
has been researched extensively.
• iii) roles and status:
A person belongs to money groups family. Clubs and organization. The
persons position in each group can be defined in terms of both role and
status.
Ex: M & S plays the role of fathers, in his family, he plays the role of
husband, manager at his company.
3) Personal factors:
i) Age and life cycle stage: people change the goods and services they
buy. Over their life times testing food, clothes, furniture and
recreation are often age related. Buying is also shaped by the stage of
family life cycle.
• ii) occupation:
A persons occupation affects the goods and services bought. Blue collar
workers tend to buy more rugged work clothes, where as white-collar
workers buy more businers suits.
iii) Economic situation:
A persons economic situation will affect product choice.
iv) Life style :
Life style is a persons pattern of living, understanding these forces involves
measuring consumers major AIO; activity, interest and opinions.
v) Personality and self concept:
Each persons distinct personality influencers his or buying behaviour.
Personality refers to the unique psychological characteristic that lead to
relatively consistant and lasting responses to ones own environment.
Psychological factor
• 1) motive/ drive:
It need that sufficiently pressing to direct the person to seek
satisfaction of the need.
2) perception:
The process by which people select, organize and interpret
information to from the meaningful picture of the world.
3) learning:
It changes in an individuals behaviour arising from experience.
4) Beliefs and attitudes:
Belief is a descriptive thoughts that a person holds about something.
Attitude, a person’s consistently favorable or unfavorable
evaluations, feelings and tendencies towards an object or an idea.
The consumer decision process
• 1) problem recognition:
The buying process begins with the recognition on the part of an individual or an
organization that they have a problem or need. Marketing research needs to
identify the stimuli that trigger the recognition of particular problems and needs .
2) Information search :
Information gathering may be passive or active. Passive information gathering occurs
when an individual or group becomes more attentive to a recognised solution to
given need. Marketers will be interested to establishes, what information sources
tend to seek out. Kotler states that “ the information sources used will fall into 4
categories.
a)Personal sources : family, friends, work colleagues, neighbours, acquaintances).
b)Commercial sources : (promotional materials, press releases, technical journals or
consuer magazines distributors, packaging)
c) Public sources (mass media)
d)Experiential source (handling, using the product).
• 3.evaluation of alternatives:
The process of evaluating alternatives not only differs from
customers to customer, prospective customer but the
individual will also adopt different process in accordance
with the situation. It is likely that when making judgments,
customer will focus on those product attributes and features
that are most relevant to their needs at a given point in time.
4.Purchase decision:
At the evaluation stage the prospective customer will have
arrive at a judgement about his/her preference among
evoked set and have formed a purchase intention.
• 5.post purchase behaviour:
The process of marketing is not concluded
when a sale is made. Marketing continues
into the post purchase period. The aim of
marketing is not to make a sale but to create
a long term relations with the customer.
Organization maintain profitability and
growth through the loyal customers.
Types of retail consumer buying behaviour

• 1. routine response/programmed behaviour: programmed


behaviour shows that the consumer are buying low
involvement frequently purchased low cost items; need very
little research and decision effort purchased almost
automatically.
• Ex: buying soft drinks, snacks, foods, milk etc..
• 2. limited decision making behaviour:
• It shows that consumer are buying product occasionally. It
requires moderate amount of time for information gathering.
• Ex: buying clothes by knowing product class but not the
brand.
• Extension decision making:
It complex is high involvement, unfamiliar
expensive and are in frequently brought
products. High degree of economic/
performance/psychological risk is involved.
Ex: buying cars, homes, computers etc..
4.Impulsive buying behaviour:
It shows no conscious planning. Consumers buy
goods or take decisions to buy goods on spot.
• A)shopping behaviour of consumer:
A shopping situation is a particular act of buying behaviour
occurring at a specific point in space and time. Influence
of situational variables on shopping behaviour.
1.Physical setting: it occurs geographical location of the
retail but might equally be sun in terms of the
environment in which the consumer reads catalogues or
access a shopping center and particular store. It also
influences on behaviour resulting from environmental
conditions such as wheather or climate placement of
merchandise. Access to information in a store.
• 2.social setting:
The shoppers who are accompanied by other people are considered
to be social shoppers; the social setting describes the presents or
absence of others, together with their social goals, role attitude
and opportunities for interaction.
3.Temporal aspect:
Temporal aspects are very important elements that effect the
situational variables. Time of day constraints upon time available
for shopping are variables with very obvious effects buyer
behaviour. For instance, factors such as seasonal variations in the
available product range a particularly important situational
variable within the context of both fashion shopping and
perishable purchase.
• 4. task definition :
Task definition is more individual specific and
encompasses cognitive and motivational indications of
the shopping situation, effectively capturing
situational influences on the task definition,
information search and evaluation stages depicted in
traditional consumer decision making models. The
difference in degree of information processing
behaviour varies for practical/helonistic product.
Products for self consumption v/s gift purchases for
others.
• Retail planning process:
Generally, the retailers wise set the product or merchandise for the stores
form various manufacturers or brands. Depending on the products.
The retailers will plan the strategies. The retailer planning process
involves a step. The retailers goes through while developing a strategic
retail plan. These steps are as follows:
a) Define the business mission
b) Conduct the situation audit
c) Identify the strategic situation
d) Evaluate the strategic opportunity.
e) Establish specific objective and allocate resources.
f) Develop retail mix.
g) Evaluate performance.
• A)define business mission:
The mission statement is usually a brand
description of retailer objectives and scope of
activities they planned to undertake. It will
indicate the general nature of target segment
and retail formats which the firm will focus.
(what business we are in), what should be our
future business? Who are our customers?
What are our capabilities)
• 2) conduct situation audit:
Situation audit means to do analysis of the opportunities and
treats in the retail environment as well as strength and
weakness of retail business. Retail business (market factors,
competitive factors, environment factors, customer loyalty).
3) Identify the strategic opportunity:
After the situation audit, the strategic opportunities to
increase the retail sales. These include diversification.
Market penetration (increase in the size of the present
store and products) market expansion (opening new stores
a geographic area).
• 4) evaluate strategic opportunity:
This step involves making an evaluation of opportunities in order to build or
establish a sustainable competitive advantage and to get long term
benefits. Such an evaluation with enable the retailers to make proper
investment and build up competitive position.
5) Establish specific objectives:
Specific objectives include time period within which goals and needs to be
achieved, the level of investment to achieve the objectives, the
performance bought.
6) Develop retail mix:
It involves a developing retail mix for the opportunity in which investment
will be made and to control and evaluate the performance. Retail mix
include planning merchandise assortment (different types), customer
service, store management, retail communication mix.
• 7)evaluate performance:
it is the process to evaluate the result of
strategy and implementation program. This
evaluation program will review whether the
retailer is meeting the objective set or not. If
the objectives are not required but if they fail
to meet then analysis should be.
Customer service
• It include all the activities which are carried by retailers for
its customers. Customer services is the provision of services
before, during and after purchase.
• Benefits:
1. Satisfied customers
2. Customer loyalty.
3. Edge on competitors
4. Key for the survival.
5. Customer satisfaction.
It can be defined as a degree of persons about a product of
service.

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