retail marketing and consumer behavior, by thinker

8/8/2019 Retail Marketing and Consumer Behavior, By THINKER

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Saturday 23 October 2010



Top 5 Factors in Apparel Retailing.

1. Latest Trends2. High-Quality Products

3. Brand Names I want

4. Broad Selection

5. Full Range of Services

NOTE : Factors vary by category. Number 1 factor in home productsis broad selection.

Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15.




Buying Behavior is the

decision processes (>>) and acts of people

involved in buying and using products.




Can you think of any momentswhen you are NOT being aConsumer ?




We Are Consumers 24*7! Why?






Because:






Because:

We are always consuming something.






Because:


(like the clothes we are wearing or the bed we are sleeping on)






Because:



We are sometimes planning future

consumption.






Because:



We are sometimes planning future

consumption.

We are sometimes enjoying the memory of past consumption.




http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 13/57Saturday 23 October 2010



WHAT IS the PURPOSE OF

MARKETING?

To Make Money

or





MARKETING?

To Make Money

or

To Create a Satisfied Customer





MARKETING?

To Make Money

or


Focus on Consumers’ Needs Rather Than Products





MARKETING?

To Make Money

or



Identify Consumers’ Latent Needs





MARKETING?

To Make Money

or



Identify Consumers’ Latent Needs

Understand Consumer Behavior




?

PsychologicalMemory

Percep2on

Mo2va2on

Personality

Demographics

Environmental•Family

•Culture

What is purchased?

When, Timing?

How much?

For what use?

Model of Consumer Behavior

Black box

Buyer’sResponses




• why consumers make the purchases that

they make?

• what factors influence consumer

purchases?

• the changing factors in our society.

Need to understand:




• Buyers reactions to a firms marketing

strategy has a great impact on the firmssuccess.

• The marketing concept stresses that a firm

should create a Marketing Mix (MM) thatsatisfies (gives utility to) customers, thereforeneed to analyze the what, where, when andhow consumers buy.

• Marketers can better predict how consumerswill respond to marketing strategies.


http://www.udel.edu/alex/chapt1.html#mix






Stages of the Consumer BuyingProcess

Six Stages to the Consumer Buying Decision

Process (For complex decisions). Actual

purchasing is only one stage of the process.

Not all decision processes lead to a purchase.

All consumer decisions do not always include

all 6 stages, determined by the degree of

complexity...discussed next.


1 5



1of5 s t e

p

PROBLEM

RECOGNITION


2 5



2of5 s t e

p

INFORMATIONSEARCH


3 5



3of5 s t e

p

ALTERNATIVEEVALUATION

&

SELECTIONSaturday 23 October 2010

4 5



4of5 s t e

p

OUTLET SELECTION

& PURCHASE




overall




Types of Consumer Buying Behavior

Types of consumer buying behavior are determined by:

• Level of Involvement in purchase decision.

Importance and intensity of interest in a product in a

particular situation.

• Buyers level of involvement determines why he/she ismotivated to seek information about a certain

products and brands but virtually ignores others.




Low-purchase involvement High-purchase involvement

Nominal decision making Limited decision making Extended decision making

Problem recognition

Selective

Problem recognition

Generic

Problem recognition

Generic

Information searchInternal

Limited external

Information searchLimited internal

Information searchInternal

External

Alternative evaluation

Few attributesSimple decision rules

Few alternatives

Alternative evaluation

Many attributesComplex decision rules

Many alternatives

Purchase Purchase Purchase

PostpurchaseNo dissonance

Limited evaluation

PostpurchaseNo dissonance

Very limited evaluation

PostpurchaseDissonance

Complex evaluation

Impulse buying- no conscious planning.




Categories that Effect the Consumer

Buying Decision Process

PersonalPsychological

Social


http://www.udel.edu/alex/chapt6.html#social

http://www.udel.edu/alex/chapt6.html#psychological





http://www.udel.edu/alex/chapt6.html#personal






Personal Psychological

Social

Unique to a particular

person. Demographic

Factors. Sex, Race, Age etc.

Who in the family is

responsible for the decision

making.Young people purchase

things for different reasons

than older people.





















Social

Motives, Perception, Ability

and Knowledge, Ability and

Knowledge, Attitudes,

Personality, Lif estyles.
















Social

Opinion leaders, Roles andFamily Influences,

Reference Groups, Social

Class, Culture and Sub-

culture.














It can be regarded as

the mental processes(cognitive process)resulting in the selectionof a course of action

among severalalternatives. Everydecision makingprocess produces a final

choice. The output canbe an action or anopinion of choice.

D e c i s i o n

m a k i n g


http://en.wikipedia.org/wiki/Choice

http://en.wikipedia.org/wiki/Choice

http://en.wikipedia.org/wiki/Cognition

http://en.wikipedia.org/wiki/Cognition



Problem Analysis vs. Decision Making

It's important to differentiate between problemanalysis and decision making. The conceptsare completely separate from one another.Problem analysis must be done first, then theinformation gathered in that process may be

used towards decision making.




Problem Analysis

• Analyze performance, what should the results be against

what they actually are?

• Problems are merely deviations from performance

standards.

• Problem must be precisely identified and described.

• Problems are caused by some change from a distinctivefeature.

• Something can always be used to distinguish between what

has and hasn't been effected by a cause.

• Causes to problems can be deducted from relevant

changes found in analyzing the problem.

• Most likely cause to a problem is the one that exactly

explains all the facts.




Decision Making

• Objectives must first be established.

• Objectives must be classified and placed in order ofimportance.

• Alternative actions must be developed.

• The alternative must be evaluated against all the

objectives.• The alternative that is able to achieve all the objectives is

the tentative decision.

• The tentative decision is evaluated for more possible

consequences.

• The decisive actions are taken, and additional actions aretaken to prevent any adverse consequences from

becoming problems and starting both systems (problem

analysis and decision making) all over again.




Consumer behavior is influenced

by the circumstances surrounding

the purchase of a product.

Social surroundings

Physical surroundings

Temporal effects

Purchase task

Situational Influences




We perceive our environment

through our senses

We respond to stimuli

Those responses are our

behavior

Perception is everything

Half Empty

Half Filled


retail marketing and consumer behavior, by thinker

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