Consumer Behaviour in Retail
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Transcript of 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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