7/28/2019 Cb in Retail

1/19

Chapter 4

7/28/2019 Cb in Retail

2/19

Media Explosion

Increase in disposable income

Rise in middle class people

Increase in earning young people

Changes in Expenditure pattern

Increase in no. of working women

Analysis for changes in Indian Consumer

7/28/2019 Cb in Retail

3/19

Factors Influencing the Retail ShopperUnderstanding the reason behind the consumers choosing or

patronizing a store over others is important for retailers.

Range of merchandise

Factors influencing

customers decision making

7/28/2019 Cb in Retail

4/19

RANGE OF MERCHANDISE

It is the most important reason for patronize aparticular outlet.

To convert a initial buyer into a loyal customer

and retain him is largely dependent on themerchandise offered.

7/28/2019 Cb in Retail

5/19

LOCATION CONVENIENCE

The element of convenience is fast gaining

importance in the world of organized retail.

This is true in case of grocery, fruits, chemists.

7/28/2019 Cb in Retail

6/19

TIME TO TRAVEL

It is the time required to reach a particular

location.

This is especially true in the case of metros like

Mumbai.

This has resulted many local areas developing

in terms of shopping.

7/28/2019 Cb in Retail

7/19

SOCIO ECONOMIC BACKGROUND AND CULTURE

It determines his / her lifestyle.

This influences the kind of store that he / she maybe comfortable shopping in.

Consumer Buying Behaviour varies from market

to market and largely dependent on the culture ofthat region.

The need hierarchy is different for different

market.

The retailer can fulfill needs to be clearly

understood by him.

7/28/2019 Cb in Retail

8/19

THE STAGE OF THE FAMILY LIFE CYCLE

The stage of the family life cycle that the

customer belongs to , is also influences hisneeds.

The needs of a young bachelor will be different

from the requirements of a family with children inteens, which will again be different from the

requirements of an elderly retired people.

The retailer needs to be clear about the target

market that he is catering to, as he can not be

everything to everybody.

7/28/2019 Cb in Retail

9/19

Factors Influencing Consumer BehaviorCultural

Culture

Subculture

Social Class

Social

ReferenceGroups

Family

Roles &Status

Personal

Age & Life-Cycle Stage

Occupation

Economic

SituationLifestyle

Personality &

Self-Concept

Psychological

Motivation

Perception

Learning

Beliefs &

Attitudes

Gender Roles Poverty of Time

Component of Life-Style

7/28/2019 Cb in Retail

10/19

Retail

Shoppers

6.

Environmental

Factors

2.

Life-Styles

1.

Demographics

3.

Needs and

Desires

4.

Shopping

Attitudes and

Behavior

5.

Retailer

Actions

7/28/2019 Cb in Retail

11/19

Outcome

Purchase New Product

Stick with Old Brand

Talk to Friends

Seek More Information

Non-purchase

Types of Perceived Risk

Functional

Physical

Financial

Social

Psychological

Time

Factors Affecting Perceived Risk

Product/Retailer Newness

Consumers Budget

Level of Consumer Experience

Number of Alternatives Social Visibility

Amount of Information Available

Time Available to Shop

Urgency of Need

Price of Product

Etc.

Consumer

7/28/2019 Cb in Retail

12/19

In-Home Shopping

Online Shopping

Out-shopping

7/28/2019 Cb in Retail

13/19

What to Buy

Where to Buy

VALS

7/28/2019 Cb in Retail

14/19

StimulusProblem

Awareness

Information

Search

Evaluation

of

Alternatives

Purchase

Post-

purchase

Behavior

The Decision Process

Demographics Life-Style

(a)

(b)

(a) Impact of Life-Style on Demographics

(b) Impact of Purchases on Life-Style

7/28/2019 Cb in Retail

15/19

x

Need

recogni

zed

Searchfor

Inform-

ation

Store

visits

Purchase

decision

Evaluatio

n of

options

7/28/2019 Cb in Retail

16/19

Determine

Target

Market

Approach

Study

Characteristics,

Needs, and

Attitudes of

Target Market(s)

Examine How

Consumers Make

Decisions--byProduct Category

Develop andEnact--

Appropriate

Retail Strategy

Mix(es) for the

Target Market(s)

Chosen

Select

Specific

Target

Market(s)

Retailers Action

7/28/2019 Cb in Retail

17/19

Consumers

Purchase or

Non-purchase

Retailers

Place of Purchase

Store

Home

Office/school World Wide Web

Retailers

Good/Service

Availability

Stock on Hand

Delivery

Retailers

Purchase Terms

Price

Cash vs. Credit

Acceptance

7/28/2019 Cb in Retail

18/19

Mass Marketing

Concentrated Marketing

Differentiated Marketing

7/28/2019 Cb in Retail

19/19

Research after setting up Retail Store

Evaluation of customer satisfaction

Generating ideas for developing / introducing

new product

Evaluating the acceptability and pricing of the

new products

Understanding the customer profiles