Buying Behavior & Retail

7/28/2019 Buying Behavior & Retail

1/13

The Retail Consumer Behavior

There is only one boss, the

customer and he can fire anybodyin the company, from Chairman on

down, simply by spending his

money somewhere else.

- Sam Walton


2/13


3/13

Chapter Flow

Why the need to study the consumer?

Which factors affect the retail shopper?

Which stages of DM does the consumer pass

through?

How can research help in understanding

consumers and markets?


4/13

Need for studying CB

Understanding of CB is the starting point of

strategy creation

CB study helps in determining positioning

To identify the influencers of purchase

decision

Consumers perception of competition?


5/13

Factors influencing the retail shopper


6/13


Range of merchandise Unique merchandise is a competitive advantage

Location convenience

Grocery purchase at Reliance Fresh versus

Bhatar market

Time to Travel Localized centers, chain of stores


7/13


Socio-economic factors Determines the consumers lifestyle

Some indicators

Life expectancy

Death rate Literacy rate

Per capita consumption


8/13


Average Household income in 2007-08 (`/household)

Surat 4,57,671Chandigarh 4,22,503

Mumbai 4,03,059

Delhi 3,37,678

Ahmedabad 3,28,267


9/13

Consumer Decision-making Process

NeedRecognized

Search forInformation

Store visitsEvaluationof options

Purchasedecision


10/13

Consumer Decision-making Process

Store ------ Product -------- Brand

Product ------- Brand -------- Store


11/13

Family Life Cycle & RetailStage Characteristics Relevance & Traits

Bachelor Independent, young, earlycareer, entry level earnings

Clothing, car stereo, travel,entertainment, status consc.

Newly Married Two incomes, relative

independence, present & future

oriented

Furnishing, travel, clothing,

durables, fun & entertainment

Full Nest I One child < 6 yrs., limited

independence, future oriented

Items related to child, family use

items, economy

Full Nest II Youngest child > 6, but

dependent, future oriented

Savings, home, education,

vacations, children related

products

Full Nest III Youngest child at home, but

independent, highest income

slab, planning for retirement

Expensive durables,

replacement of durables,

comfort and luxury

Empty Nest I No child at home, good income,thinking of retirement

Retirement home, travel,entertainment, clothing

Empty Nest II Retirement, limited income,

present oriented

Travel, recreation, new home,

health related items

Sole Survivor I One souse alive, employed,

good income, present oriented

Friends, travel, clothing health,

recreation

Sole survivor II One spouse, retired, low income Travel, recreation, health relateditems, social security


12/13

Buying Situations

Extensive Problem Solving

Limited Problem Solving

Routine Purchase situation


13/13

Marketing Research Prior to setting up a store

Demographic data

Diversity of the population

Understanding consumer profiles

Population & composition of population

GDP & PPP

Consumer Data Buying behavior, pattern

Documents

Buying Behavior & Retail