consumer behaviour in retail

8/2/2019 Consumer Behaviour in Retail

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CONSUMER BEHAVIOUR IN RETAIL

MARKETING


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CONSUMER BEHAVIOR :

Consumer behavior is the study of how peoplebuy, what they buy, when they buy and why they

buy. It attempts to understand the buyerdecision making process, both individually andin groups. It studies characteristics of individualconsumers such as demographics,

psychographics, and behavioural variables in anattempt to understand people's wants.


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WHY DO YOU NEED TO STUDY

CONSUMER BEHAVIOUR??:

CONSUMER IS THE KING OF THE MARKETAND FOR THE BUSINESS TO SURVIVE FORLONG,IT IS IMPORTANT TO STUDYCONSUMER BEHAVIOUR.


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STAGES OF THE CONSUMER BUYINGPROCESS

Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

PurchasePost-Purchase Evaluation


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PROBLEM RECOGNITION

Difference between the desired state and theactual condition.

Example:

By seeing a commercial for a new pair of shoes,stimulates your recognition that you need a new

pair of shoes. Hunger stimulates your need to eat.


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INFORMATION SEARCH Internal Search:

--- Memory

External Search:--- Friends and RelativesA successful information search leaves a buyer with

possible alternatives, the evoked set. Example:

Hungry, want to go out and eat, evoked set is Chinesefood Indian food Burger king


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EVALUATION OF ALTERNATIVES

Need to establish criteria for evaluation, featuresthe buyer wants or does not want.

Rank/weight alternatives.

Example:

If you want to eat something spicy, then

Indian food gets the highest rank etc


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PURCHASE DECISION

Choose buying alternative, includes product,package, store, method of purchase etc.

PURCHASE :

May differ from decision, time lapse between

purchase decision and the actual purchase,product availability


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POST-PURCHASE EVALUATION

It is the outcome Satisfaction or Dissatisfaction.This can be reduced by warranties, after salescommunication etc.

Example:

After eating an Indian meal, you may think that

really you wanted a Chinese meal instead.


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TYPES OF CONSUMER BUYINGBEHAVIOUR :

Routine Response/Programmed Behavior

Limited Decision Making

Extensive Decision Making

Impulse buying


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ROUTINE RESPONSE/PROGRAMMEDBEHAVIOUR

Buying low involvement, frequently purchased,low cost items.

Examples :

Soft drinks, snack foods, milk etc.


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LIMITED DECISION MAKING

Buying product occasionally.

That is when you need to obtain informationabout unfamiliar brand in a familiar productcategory.

Example:

Clothes--know product class but not the brand.


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EXTENSIVE DECISION MAKING

Complex high involvement, unfamiliar,expensive and infrequently bought products.

Spend a lot of time seeking information anddeciding. High degree of risk.

Example:

Cars, homes, computers, education


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IMPULSE BUYING No conscious planning. The purchase of the same product does not always elicit

the same Buying Behavior. Product can shift from onecategory to the next.

For example:Going out for dinner for one person may beextensive decision making (for someone that does not goout often at all), but limited decision making forsomeone else. The reason for the dinner, whether it is an

anniversary celebration, or a meal with a couple offriends will also determine the extent of the decisionmaking.


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WHAT INFLUENCES CONSUMER WHENHE WISHES TO BUY SOMETHING.??

PRICE?

NEED SATISFACTION

AVALAIBILITY OF MONEY

QUALITY OF PRODUCT

AND MANY MORE FACTORS


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MAIN FACTORS AFFECTING CONSUMERBEHAVIOUR

Personal

Psychological

Social

Cultural


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Personal Factors

PERSONAL PERSONAL INFLUENCES Age & Lifecycle stage Occupation Economic Situation Personality & Self-concept LIFESTYLE IDENTIFICATION Activities Interests Opinion


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Psychological Factors

Motivation

Perception

Learning

Beliefs & Attitude


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Maslows Hierarchy of Needs

Self Actualization (Self-development )

Esteem Needs ( self-esteem, status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological Needs (hunger, thirst)


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SOCIAL FACTORS Reference group Opinion leadersRoles and status Family Decision Making The initiator The information provider The influencer

The decision maker The purchasing agent The consumer


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CULTURAL FACTORS

Family environment

Religious sentiments

Tastes and preferences


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BRAND CONSCIOUS PEOPLE

The sale of cars like BMW,SKODA LAURA isincreasing at a great pace..WHY?

People are getting brand concsious

Status symbol

Consumer Delight


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Family Influence on Buying Behavior

Husband-Dominant

Wife-Dominant

Equal


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A fact..

Usually people have a myth that if they pay morethen they will get better products but at timesout of ignorance they tend to pay unreasonably


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Group Influences

Public Luxuries Golf Clubs Snow Skis

Sail Boat Private Luxuries TV Video Games Ice Makers Trash Compactors Public Necessities Wrist Watch

Automobiles Clothes Private Necessities Mattresses Floor Lamps Refrigerators


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Consumer behaviour & internationalmarket

Increased MNCs

Wider choice for consumers

Easy substitutes available

Competitive prices

Imported goods available Standardization of goods


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Negligent Consumer Behavior

Negligent behavior is composed of actions andinactions that may negatively affect the long-

term quality of life of individuals and society.This type of behavior can occur in two different

contexts:

Product Misuse Consumption of Hazardous Products


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consumer behaviour in retail

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