Retail management and consumer behavior, by thinker
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Transcript of Retail management and consumer behavior, by thinker
thinkerSaturday 23 October 2010
SHOPPINGPROCESS,DECISIONMAKINGPROCESS,DIFFERENTTYPESOFDECISIONS.
- by RAVI PATEL“thinker”
Saturday 23 October 2010
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Welcome to the exciting world of consumers!
Saturday 23 October 2010
Top 5 Factors in Apparel Retailing. 1. Latest Trends
2. High-Quality Products3. Brand Names I want4. Broad Selection5. Full Range of Services
NOTE: Factors vary by category. Number 1 factor in home products is broad selection.
Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15.
Saturday 23 October 2010
Buying Behavior is the
decision processes (>>) and acts of people involved in buying and using products.
Saturday 23 October 2010
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
We Are Consumers 24*7! Why?
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
We Are Consumers 24*7! Why?Because:
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
We Are Consumers 24*7! Why?Because:
We are always consuming something.
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
We Are Consumers 24*7! Why?Because:
We are always consuming something. (like the clothes we are wearing or the bed we are sleeping on)
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
We Are Consumers 24*7! Why?Because:
We are always consuming something. (like the clothes we are wearing or the bed we are sleeping on)
We are sometimes planning future consumption.
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
We Are Consumers 24*7! Why?Because:
We are always consuming something. (like the clothes we are wearing or the bed we are sleeping on)
We are sometimes planning future consumption.
We are sometimes enjoying the memory of past consumption.
Can you think of any moments when you are NOT being a Consumer ?
Saturday 23 October 2010
Saturday 23 October 2010
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
To Make Money
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
To Make Money or
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
To Make Money or
To Create a Satisfied Customer
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
To Make Money or
To Create a Satisfied Customer
Focus on Consumers’ Needs Rather Than Products
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
To Make Money or
To Create a Satisfied Customer
Focus on Consumers’ Needs Rather Than Products
Identify Consumers’ Latent Needs
Saturday 23 October 2010
WHAT IS the PURPOSE OF MARKETING?
To Make Money or
To Create a Satisfied Customer
Focus on Consumers’ Needs Rather Than Products
Identify Consumers’ Latent Needs
Understand Consumer Behavior
Saturday 23 October 2010
Consumer Behavior means more than just how a person buys products.
Some of the important issues that marketing executives in business organizations face include:
1. What do consumers think about our products
and those of our competitors?
2. What do they think of possible improvements in
our products?
Saturday 23 October 2010
3. How do they actually use our
products?
4. What are their attitudes toward our
products and our promotional efforts?
5. What they feel are their roles in the
family and society?
6. What are their hopes and dreams for
themselves and their families?
Saturday 23 October 2010
?
Psychological Memory Percep2on Mo2va2on Personality
Demographics
Environmental•Family•Culture
What is purchased? When, Timing?
How much?For what use?
Model of Consumer BehaviorBlack box
Buyer’s Responses
Saturday 23 October 2010
?
Psychological Memory Percep2on Mo2va2on Personality
Demographics
Environmental•Family•Culture
What is purchased? When, Timing?
How much?For what use?
Model of Consumer BehaviorBlack box
Buyer’s Responses
Saturday 23 October 2010
• why consumers make the purchases that they make?
• what factors influence consumer purchases?
• the changing factors in our society.
Need to understand:
Saturday 23 October 2010
• Buyers reactions to a firms marketing strategy has a great impact on the firms success.
• The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.
• Marketers can better predict how consumers will respond to marketing strategies.
Saturday 23 October 2010
Stages of the Consumer Buying Process
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.
Saturday 23 October 2010
1of5stepPROBLEM
RECOGNITION
Saturday 23 October 2010
2of5step
INFORMATIONSEARCH
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3of5step
ALTERNATIVEEVALUATION
& & SELECTION
Saturday 23 October 2010
4of5step
OUTLET SELECTION &
PURCHASESaturday 23 October 2010
5of5step
POST PURCHASEPROCESS
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over all
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Saturday 23 October 2010
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 is motivated to seek information about a certain products and brands but virtually ignores others.
Saturday 23 October 2010
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 search Internal
Limited external
Information search Limited internal
Information search Internal
External
Alternative evaluation Few attributes
Simple decision rules
Few alternatives
Alternative evaluation Many attributes
Complex decision rules
Many alternatives
Purchase Purchase Purchase
Postpurchase No dissonance
Limited evaluation
Postpurchase No dissonance
Very limited evaluation
Postpurchase Dissonance
Complex evaluation
Impulse buying- no conscious planning.
Saturday 23 October 2010
Saturday 23 October 2010
Outlet Image
Retailer Brands
Retail Advertising
Outlet Location and Size
Retail outlet selection involves a comparison of the alternative outlets on consumer’s evaluative criteria:
Attributes Affecting Retail Outlet Selection
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Saturday 23 October 2010
Categories that Effect the Consumer Buying Decision Process
Personal Psychological Social
Saturday 23 October 2010
Categories that Effect the Consumer Buying Decision Process
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.
Saturday 23 October 2010
Categories that Effect the Consumer Buying Decision Process
Personal Psychological Social
Motives, Perception, Ability and Knowledge, Ability and Knowledge, Attitudes, Personality, Lifestyles.
Saturday 23 October 2010
Categories that Effect the Consumer Buying Decision Process
Personal Psychological Social
Opinion leaders, Roles and Family Influences, Reference Groups, Social Class, Culture and Sub-culture.
Saturday 23 October 2010
It can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be an action or an opinion of choice.
Decision
making
Saturday 23 October 2010
Problem Analysis vs. Decision Making
It's important to differentiate between problem analysis and decision making. The concepts are completely separate from one another. Problem analysis must be done first, then the information gathered in that process may be used towards decision making.
Saturday 23 October 2010
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 distinctive feature.• 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.
Saturday 23 October 2010
Decision Making• Objectives must first be established.• Objectives must be classified and placed in order of importance.• 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 are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again.
Saturday 23 October 2010
Consumer behavior is influenced by the circumstances surrounding the purchase of a product.
Social surroundings
Physical surroundings
Temporal effects
Purchase task
Situational Influences
Saturday 23 October 2010
Consumer Behavior– you are what you buy…
Saturday 23 October 2010
The only way to know How customers see your business is to look at through their eyes.
4
Marketing Psychology & C.B.
is
Saturday 23 October 2010
We perceive our environment through our senses
We respond to stimuli
Those responses are our behavior
Perception is everything
Half Empty
Half Filled
Saturday 23 October 2010
Consumers’ final purchase activity is the only aspect that is visible.
Saturday 23 October 2010
Saturday 23 October 2010
“The consumer has become a totem pole around which a multitude of actions and ideologies are dancing”.
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Saturday 23 October 2010
Saturday 23 October 2010