retail customer-retail management

8/7/2019 Retail Customer-Retail Management

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RETAIL CUSTOMERRETAIL CUSTOMER


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Importance of consumerImportance of consumerbehaviourbehaviour

Consumer behaviour :Consumer behaviour : study of how consumers makestudy of how consumers makedecisions to use their respective resources such as time, money,decisions to use their respective resources such as time, money,

and effort for buying, using, and disposing goods and servicesand effort for buying, using, and disposing goods and services

Understanding the pulse of the consumer:Understanding the pulse of the consumer:demography, psychology, environment, and life style of thedemography, psychology, environment, and life style of thecustomer need to be studiedcustomer need to be studied

Involves identifying the various stages in theInvolves identifying the various stages in theconsumer decisionconsumer decision--making process and keeping trackmaking process and keeping trackof the major influences at each stageof the major influences at each stage

Choice of a hair shampooChoice of a hair shampoo-- consumer need could be (normal to dry, normal to oily,anticonsumer need could be (normal to dry, normal to oily,anti--

dandruff)dandruff)-- reason to buy (silky texture, free from dandruff, wavy touch)reason to buy (silky texture, free from dandruff, wavy touch)-- brand preference (local, international)brand preference (local, international)-- place of purchase (supermarket, phrmacy, kirana store)place of purchase (supermarket, phrmacy, kirana store)-- frequency of purchase (weekly, fortnightly,monthly)frequency of purchase (weekly, fortnightly,monthly)


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Motives for shoppingMotives for shopping

Motives influence a consumers shopping activitiesMotives influence a consumers shopping activities

Personal MotivesPersonal Motives-- role playing:role playing: where a daughter is influenced by herwhere a daughter is influenced by her

mothers choices while shopping and plays a role ofmothers choices while shopping and plays a role ofdemonstrating learned behaviourdemonstrating learned behaviour

-- diversion:diversion: diversion from daily life to shoppingdiversion from daily life to shopping

-- self self--gratification:gratification: expected utility of the buying processexpected utility of the buying process

-- learning about new trends:learning about new trends: to gain information aboutto gain information about

new trendsnew trends-- physical activity:physical activity: exercise involvedexercise involved

-- sensory stimulation:sensory stimulation: gain sensory benefits like listeninggain sensory benefits like listeningto musicto music


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Motives for shoppingMotives for shopping contdcontd

Social MotivesSocial Motives-- chance to socialize: can meet up with friends or seekchance to socialize: can meet up with friends or seek

acquaintancesacquaintances

-- peer group attraction: a meeting place for peerspeer group attraction: a meeting place for peers-- status and authority:status and authority: attain status and power by

being waited upon

- pleasure bargaining: enjoyment in gaining a lower

price


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Consumer decisionConsumer decision--makingmaking

processprocess

Factors affecting the consumer decision making process


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Consumer decisionConsumer decision--makingmaking

processprocess contd

Demographic factorsDemographic factors- objective, quantifiable, and easily identifiable such

as gender, income, family size, age, marital status,

etc.

- identifies the ultimate consumer

- Shoppers Stop is segmented for the high incomegroup while Saravanna stores is segmented for the

daily wage earners


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Consumer decisionConsumer decision--makingmakingprocessprocess contdcontd

Psychological factors- intrinsic or inner aspects of the individual

Each consumer reacts differently based ontheir:

- Motives: internal energizing force that orients apersons activities towards satisfying a need orachieving a goal

- Perception: process of selecting, organizing, andinterpreting information inputs to produce meaning

- Example: the salesmens service in Shoppers Stop willbe perceived positively ,while in few cases it shall beconsidered as interference

- Learning: permanent change in behaviour results fromthe consequences of past behaviour

- consumer learning theories are classical conditioning,

operant conditioning, vicarious learning, and mereexposure


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Consumer decision-making

process contd

Attitude:- consumers predisposition to respond favourablyor unfavourably

- for e.g.: Indian consumers have a positiveattitude towards burgers

Personality:- internal traits and behaviours that makes aperson unique

- for e.g.: he is an extrovert by nature


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Consumer decision-making

process contd

Environmental factorsEnvironmental factors- physical and social characteristics of a consumers external

world

- physical objects (goods and outlets), spatial relationships

(location of the shopping centre and merchandise in stores),and the social factors (opinion leaders, the persons family,co-customers, reference groups, social class, and culture)

Two levels of environmentTwo levels of environment

- macro environment includes large-scale, generalenvironmental factors (e.g.: easy installments in purchasingMaruti 800)

- micro environment refers to the more tangible physical andsocial aspects of an individuals immediate surroundings


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Social classSocial class

Social class: classification of members of a society intoa hierarchy of distinct status classes, so that members of

each class have a relatively similar status and members of

all other classes either have more or less status

Middle class consumers prefer shopping in local kiranaMiddle class consumers prefer shopping in local kiranastores while consumer falling in the upper class or elitestores while consumer falling in the upper class or eliteclass prefer strolling in mallsclass prefer strolling in malls

Customers are classified as:Customers are classified as:-- upper elite classupper elite class

-- lower upper classlower upper class-- upper middle classupper middle class-- middle classmiddle class-- working classworking class-- lower middle classlower middle class


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Culture and subCulture and sub--cultureculture Set of values, ideas, and attitudes accepted by a

homogeneous group of people and transmitted to thenext generation

Major influencing factor in retail marketing andcommunications

India is a collectivistic society hence the culturediffers entirely from individualistic societies (e.g.United States)

Global companies entering into India need to revisetheir promotional strategies

McDonalds, Pizza Hut have localized their service inorder to suit the culture of India by adding TandooriPizza and vegetable burgers


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Stages of consumer decisionStages of consumer decision--makingmaking


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Consumer decision rulesConsumer decision rules


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Situational influencesSituational influences


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Indian shoppersIndian shoppers

Indian shoppers tend to visit the market in the seondhalf of the day rather than in the first half,especially during summers

Cineplexes in the major cities carried out a drive to

introduce effective air conditioning systems in theirtheatres to attract the crowds during morning ornoon hours in north India

Inconvenience of carrying too many purchases over

a longer distance using two-wheelers, bicycle,scooters etc

Prefer to purchase products, other than food orbeverages in the company of their relatives orfriends


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Sample of customer profile andSample of customer profile andanalysisanalysis

When do customers like to shop? How do customers like to pay? What quality of merchandise do customers usually

prefer? What type of store has the maximum appeal for my

customers? How do customers handle servicing of the mechanical

products purchased by them? Who does most of the buying in the homes of my

customers? What is the income level of my average customer?

W

hat is the age profile of my average customer? What is the general attitude of my customer towards his community? How does my customer react to new and different

merchandise or promotional activities? What major changes has my customer made in the last

two years?

retail customer-retail management

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