Chapter 4

Analysis for changes in Indian Consumer Media Explosion Increase in disposable income Rise in middle class people Increase in earning young people Changes in Expenditure pattern Increase in no. of working women

Factors Influencing the Retail Shopper

Understanding the reason behind the consumers choosing or patronizing a store over others is important for retailers.

Factors influencing customers decision making

Range of merchandise

RANGE OF MERCHANDISE
It is the most important reason for patronize a particular outlet.

To convert a initial buyer into a loyal customer and retain him is largely dependent on the merchandise offered.

LOCATION CONVENIENCE

The element of convenience is fast gaining importance in the world of organized retail. This is true in case of grocery, fruits, chemists.

TIME TO TRAVEL It is the time required to reach a particular location. This is especially true in the case of metros like Mumbai. This has resulted many local areas developing in terms of shopping.

SOCIO ECONOMIC BACKGROUND AND CULTURE

It determines his / her lifestyle.

This influences the kind of store that he / she may be comfortable shopping in. Consumer Buying Behaviour varies from market to market and largely dependent on the culture of that region. The need hierarchy is different for different market. The retailer can fulfill needs to be clearly understood by him.

THE STAGE OF THE FAMILY LIFE CYCLE The stage of the family life cycle that the customer belongs to , is also influences his needs. The needs of a young bachelor will be different from the requirements of a family with children in teens, which will again be different from the requirements of an elderly retired people. The retailer needs to be clear about the target market that he is catering to, as he can not be everything to everybody.

Factors Influencing Consumer Behavior

Cultural Culture Social Reference Groups Family Roles & Status Personal
Age & LifeCycle Stage

Psychological Motivation

Subculture
Social Class

Occupation
Economic Situation Lifestyle Personality & Self-Concept

Perception
Learning Beliefs & Attitudes

Gender Roles Poverty of Time Component of Life-Style

2. Life-Styles

3. Needs and Desires

1. Demographics

Retail Shoppers

4. Shopping Attitudes and Behavior

6. Environmental Factors

5. Retailer Actions

Types of Perceived Risk Functional Physical Financial Social Psychological Time Consumer Factors Affecting Perceived Risk Product/Retailer Newness Consumers Budget Level of Consumer Experience Number of Alternatives Social Visibility Amount of Information Available Time Available to Shop Urgency of Need Price of Product Etc.

Outcome Purchase New Product Stick with Old Brand Talk to Friends Seek More Information Non-purchase

 In-Home Shopping Online Shopping Out-shopping

 What to Buy
Where to Buy VALS

The Decision Process

Stimulus Problem Awareness Information Search Evaluation of Alternatives Purchase Postpurchase Behavior

(b)

Demographics
(a)

Life-Style

(a) Impact of Life-Style on Demographics (b) Impact of Purchases on Life-Style

Need recogni zed

Search for Information

Store visits

Evaluatio n of options

Purchase decision

Retailers Action
Determine Target Market Approach Select Specific Target Market(s)

Study Characteristics, Needs, and Attitudes of Target Market(s) Examine How Consumers Make Decisions--by Product Category

Develop and Enact-Appropriate Retail Strategy Mix(es) for the Target Market(s) Chosen

Retailers Place of Purchase Store Home Office/school World Wide Web

Retailers Purchase Terms Price Cash vs. Credit Acceptance

Retailers Good/Service Availability Stock on Hand Delivery

Consumers Purchase or Non-purchase

 Mass Marketing Concentrated Marketing Differentiated Marketing

Research after setting up Retail Store

Evaluation of customer satisfaction

Generating ideas for developing / introducing new product

Evaluating the acceptability and pricing of the new products Understanding the customer profiles