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RETAIL CUSTOMERRETAIL CUSTOMER
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Importance of consumerImportance of consumerbehaviourbehaviour
Consumer behaviour :Consumer behaviour : study of how consumers makestudy of how consumers makedecisions to use their respective resources such as time, money,decisions to use their respective resources such as time, money,
and effort for buying, using, and disposing goods and servicesand effort for buying, using, and disposing goods and services
Understanding the pulse of the consumer:Understanding the pulse of the consumer:demography, psychology, environment, and life style of thedemography, psychology, environment, and life style of thecustomer need to be studiedcustomer need to be studied
Involves identifying the various stages in theInvolves identifying the various stages in theconsumer decisionconsumer decision--making process and keeping trackmaking process and keeping trackof the major influences at each stageof the major influences at each stage
Choice of a hair shampooChoice of a hair shampoo-- consumer need could be (normal to dry, normal to oily,anticonsumer need could be (normal to dry, normal to oily,anti--
dandruff)dandruff)-- reason to buy (silky texture, free from dandruff, wavy touch)reason to buy (silky texture, free from dandruff, wavy touch)-- brand preference (local, international)brand preference (local, international)-- place of purchase (supermarket, phrmacy, kirana store)place of purchase (supermarket, phrmacy, kirana store)-- frequency of purchase (weekly, fortnightly,monthly)frequency of purchase (weekly, fortnightly,monthly)
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Motives for shoppingMotives for shopping
Motives influence a consumers shopping activitiesMotives influence a consumers shopping activities
Personal MotivesPersonal Motives-- role playing:role playing: where a daughter is influenced by herwhere a daughter is influenced by her
mothers choices while shopping and plays a role ofmothers choices while shopping and plays a role ofdemonstrating learned behaviourdemonstrating learned behaviour
-- diversion:diversion: diversion from daily life to shoppingdiversion from daily life to shopping
-- self self--gratification:gratification: expected utility of the buying processexpected utility of the buying process
-- learning about new trends:learning about new trends: to gain information aboutto gain information about
new trendsnew trends-- physical activity:physical activity: exercise involvedexercise involved
-- sensory stimulation:sensory stimulation: gain sensory benefits like listeninggain sensory benefits like listeningto musicto music
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Motives for shoppingMotives for shopping contdcontd
Social MotivesSocial Motives-- chance to socialize: can meet up with friends or seekchance to socialize: can meet up with friends or seek
acquaintancesacquaintances
-- peer group attraction: a meeting place for peerspeer group attraction: a meeting place for peers-- status and authority:status and authority: attain status and power by
being waited upon
- pleasure bargaining: enjoyment in gaining a lower
price
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Consumer decisionConsumer decision--makingmaking
processprocess
Factors affecting the consumer decision making process
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Consumer decisionConsumer decision--makingmaking
processprocess contd
Demographic factorsDemographic factors- objective, quantifiable, and easily identifiable such
as gender, income, family size, age, marital status,
etc.
- identifies the ultimate consumer
- Shoppers Stop is segmented for the high incomegroup while Saravanna stores is segmented for the
daily wage earners
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Consumer decisionConsumer decision--makingmakingprocessprocess contdcontd
Psychological factors- intrinsic or inner aspects of the individual
Each consumer reacts differently based ontheir:
- Motives: internal energizing force that orients apersons activities towards satisfying a need orachieving a goal
- Perception: process of selecting, organizing, andinterpreting information inputs to produce meaning
- Example: the salesmens service in Shoppers Stop willbe perceived positively ,while in few cases it shall beconsidered as interference
- Learning: permanent change in behaviour results fromthe consequences of past behaviour
- consumer learning theories are classical conditioning,
operant conditioning, vicarious learning, and mereexposure
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Consumer decision-making
process contd
Attitude:- consumers predisposition to respond favourablyor unfavourably
- for e.g.: Indian consumers have a positiveattitude towards burgers
Personality:- internal traits and behaviours that makes aperson unique
- for e.g.: he is an extrovert by nature
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Consumer decision-making
process contd
Environmental factorsEnvironmental factors- physical and social characteristics of a consumers external
world
- physical objects (goods and outlets), spatial relationships
(location of the shopping centre and merchandise in stores),and the social factors (opinion leaders, the persons family,co-customers, reference groups, social class, and culture)
Two levels of environmentTwo levels of environment
- macro environment includes large-scale, generalenvironmental factors (e.g.: easy installments in purchasingMaruti 800)
- micro environment refers to the more tangible physical andsocial aspects of an individuals immediate surroundings
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Social classSocial class
Social class: classification of members of a society intoa hierarchy of distinct status classes, so that members of
each class have a relatively similar status and members of
all other classes either have more or less status
Middle class consumers prefer shopping in local kiranaMiddle class consumers prefer shopping in local kiranastores while consumer falling in the upper class or elitestores while consumer falling in the upper class or eliteclass prefer strolling in mallsclass prefer strolling in malls
Customers are classified as:Customers are classified as:-- upper elite classupper elite class
-- lower upper classlower upper class-- upper middle classupper middle class-- middle classmiddle class-- working classworking class-- lower middle classlower middle class
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Culture and subCulture and sub--cultureculture Set of values, ideas, and attitudes accepted by a
homogeneous group of people and transmitted to thenext generation
Major influencing factor in retail marketing andcommunications
India is a collectivistic society hence the culturediffers entirely from individualistic societies (e.g.United States)
Global companies entering into India need to revisetheir promotional strategies
McDonalds, Pizza Hut have localized their service inorder to suit the culture of India by adding TandooriPizza and vegetable burgers
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Stages of consumer decisionStages of consumer decision--makingmaking
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Consumer decision rulesConsumer decision rules
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Situational influencesSituational influences
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Indian shoppersIndian shoppers
Indian shoppers tend to visit the market in the seondhalf of the day rather than in the first half,especially during summers
Cineplexes in the major cities carried out a drive to
introduce effective air conditioning systems in theirtheatres to attract the crowds during morning ornoon hours in north India
Inconvenience of carrying too many purchases over
a longer distance using two-wheelers, bicycle,scooters etc
Prefer to purchase products, other than food orbeverages in the company of their relatives orfriends
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Sample of customer profile andSample of customer profile andanalysisanalysis
When do customers like to shop? How do customers like to pay? What quality of merchandise do customers usually
prefer? What type of store has the maximum appeal for my
customers? How do customers handle servicing of the mechanical
products purchased by them? Who does most of the buying in the homes of my
customers? What is the income level of my average customer?
W
hat is the age profile of my average customer? What is the general attitude of my customer towards his community? How does my customer react to new and different
merchandise or promotional activities? What major changes has my customer made in the last
two years?