Consumer behaviour in the retail context• It is the way in which retail consumers make decisions

and act in relation to the consumption of retail products.• We nned to study consumer behaviour to be aware of• The needs as well as the purchase motives of individuals• How demographic change may affect retail purchasing,• The different effects of various promotional tactics• The complexity and process of purchase decisions• The perception of risk for retail purchases• The different market segments based upon purchase

behaviour• How retail managers may improve their chance of

business success based upon understanding what is required as part of the retail experience

Needs, wants and demand functions eg purchase of clothesNeeds- basic human requirement that pre

exist for warmth, covering, social statusWants- potential to purchase occurs as the

individual feels a drive to satisfy those needs- demand- those wants for which the customer

is able to pay

Time taken to shopFunctional- (time efficient) focused

predetermined routine, habitual actionComplex( time required) preplanned/

researched higher riskLeisure (time-rich activity) emphasis on

browsing and serendipity

Adoption process of fashionTrickle down theory- is based upon the premise

that new innovative fashions and styles originate from the wealthier classes owing to ability to purchase designer clothing and are passed down through the middle classes to the lower socio-economic groups

Trickle up theory- is based upon a process of fashion and style creation by the lower socio-economic groups which is followed by the upper classes prior to being adopted by the middle classes

Retail buying rolesInitiator- first individual who suggests products Influencer- provides views and advice which are

valued by others and can subsequently influence the final decision

Decider- the individual who will take the decision in the buying process as to what, how, when and where to buy

Buyer- the individual who actually makes the purchase

User- the individual who consumes oruses the product/service

Decision over store choiceGeneral store characteristics (reputation,

number of stores)Physical characteristics of the store (décor,

cleanliness)Convenience of reaching the store from the

customers locationProducts offered (variety, dependability,

quality)Prices charged by the store Store personnelAdvertising by the store Friends perception of the store

Theories in consumer behaviourThe Engel-Kollat-Blackwell (EKB) model has the

decision process as pathways on convergence passing through various stages of processing prior to any choice being made

The central process is as follows1.Problem recognition/ arousal2.Internal search- alternative evaluation3.External search- alternative evaluation4.Choice/ purchase5.Outcomes as dissonance or satisfaction

Sheth’s family model of behaviourIt provides an attempt to replicate the

behaviour of group decision-making

The buying decision processNeed arousal Recognition of the need Level of involvementSearch for information and alternativesEvaluation of alternativesDecisionPurchase actionPost purchase feeling/ behaviour

Product category and level of purchase involvementConvenience- there is frequent purchase with little

effort exerted to compare or judge alternatives- the typical process is low involvement

Shopping- price, quality and value comparisons are made- the typical process is medium involvement

Specialty- due to the specialist aspects of the purchase, the perception of quality and value are relevant. The risk is higher and the process is higher involvement

Fashion- fashion products are susceptible to peer and reference groups influences. the typical process is high involvement

Different aspects of perceived riskEconomic riskPhysical risk eg children's toys, electrical

gadgetsPsychological risk- status can be lostPerformance risk

Motivational forcesTaber (1972) suggested that shoppers utilize 6 categories of

personal motivationRole playing- shopping may be learned and expected

behaviour pattern which , for some becomes an integral part of their role

Diversion- shopping may provide an escape from the daily routine, a form of recreation, it can provide a diversionary pastime for individuals of free entertainment for the family

Self gratification- the shopping trip may represent a remedy for loneliness or boredom, with the act of purchasing being an attempt to alleviate depression

Learning about new trendsPhysical activitySensory stimulation- through lights, colours, scents, handling

products

Social motives for shoppingSocial experiences outside the homeCommunication with others having similar

interestPeer group attractionStatus and authorityPleasure of bargainining

Motives for patronage of retail outletConvenienceReputationRetail environment characteristics eg

ambience, decoration, displays, air conditioning

Service encounter expectationsExpectations of the merchandiseExpectations of value

Understanding motivation- maslow hierarchy of needs5- self actualisation4- Esteem3- belongingness2- safety1- PhysiologicalMaslow identified 2 motivational types of

sequence mechanism in motivation which are1. deficiency or tension reducing motives2. inductive or arousal seeking motives

Demographic factors These influence demand and are based upon the aggregate

of individual social patterns within the society and these are:

Slowing birth rates Average life expectancyThe social structureDelay of marriageValue of educationNumber of householdsWorking womenPopulation mobility is increasingEthnic groups