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!


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.


Buying Behavior is the

decision processes (>>) and acts of people involved in buying and using products.


Can you think of any moments when you are NOT being a Consumer ?


We Are Consumers 24*7! Why?



We Are Consumers 24*7! Why?Because:




We are always consuming something.




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 planning future consumption.

We are sometimes enjoying the memory of past consumption.



WHAT IS the PURPOSE OF MARKETING?



To Make Money



To Make Money or



To Make Money or

To Create a Satisfied Customer



To Make Money or


Focus on Consumers’ Needs Rather Than Products



To Make Money or



Identify Consumers’ Latent Needs



To Make Money or



Identify Consumers’ Latent Needs

Understand Consumer Behavior


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?


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?


?

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


• why consumers make the purchases that they make?

• what factors influence consumer purchases?

• the changing factors in our society.

Need to understand:


• 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.


http://www.udel.edu/alex/chapt1.html#mix

http://www.udel.edu/alex/chapt1.html#mix

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.


1of5stepPROBLEM

RECOGNITION


2of5step

INFORMATIONSEARCH


3of5step

ALTERNATIVEEVALUATION

& & SELECTION


4of5step

OUTLET SELECTION &

PURCHASESaturday 23 October 2010

5of5step

POST PURCHASEPROCESS


over all


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.


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.


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


Categories that Effect the Consumer Buying Decision Process

Personal Psychological Social


http://www.udel.edu/alex/chapt6.html#personal


http://www.udel.edu/alex/chapt6.html#psychological


http://www.udel.edu/alex/chapt6.html#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.










Motives, Perception, Ability and Knowledge, Ability and Knowledge, Attitudes, Personality, Lifestyles.










Opinion leaders, Roles and Family Influences, Reference Groups, Social Class, Culture and Sub-culture.








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


http://en.wikipedia.org/wiki/Cognition

http://en.wikipedia.org/wiki/Cognition

http://en.wikipedia.org/wiki/Choice

http://en.wikipedia.org/wiki/Choice

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.


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.


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.


Consumer behavior is influenced by the circumstances surrounding the purchase of a product.

Social surroundings

Physical surroundings

Temporal effects

Purchase task

Situational Influences


Consumer Behavior– you are what you buy…


The only way to know How customers see your business is to look at through their eyes.

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Marketing Psychology & C.B.

is


We perceive our environment through our senses

We respond to stimuli

Those responses are our behavior

Perception is everything

Half Empty

Half Filled


Consumers’ final purchase activity is the only aspect that is visible.


“The consumer has become a totem pole around which a multitude of actions and ideologies are dancing”.


retail management and consumer behavior, by thinker

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