UNIT V

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RETAIL SHOPPER BEHAVIOUR

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Understanding Retail Shopper Behavior

Refer to the group of buyers who buy

goods, services and ideas for their final and ultimate consumption, not for the reproduction by any means.
Needs of customers differs in all the

ways
Understanding the customers need,
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Cont
Consumer Behavior is the behavior

that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
Idea regarding the following is

necessary
Who buys the product?
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Cont
Segmenting Creating a customer profile Targeting Retail Shopper Profile Components
Customer Demographics
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Shopper Profile Analysis

Customer profile gives the idea and

details of the retailer s customer who might typically use the retail outlet
CUSTOMER PROFILE
Macro-economic policies Micro-environment Customer demography
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Basis for Retail Segmentation

Segmentation criteria Demographics Age Income Sex Subcultures Racial differences Innovativeness Life cycle Heavy users Regulars Direct benefit Greater versus lesser Distances Urban versus rural

(Omar, p81)

Sociological Behavioural Store Loyalty Benefit Indirect benefit Geography Reputation of the location

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Retail Marketing J. Maria Banks

66

Shopping decision process

Need recognition Information search Evaluation of alternatives Purchase decision
Intervening factors
Functional Physical Financial Social 5/9/12

risk

Factors influencing retail shoppers behavior

External variables
Family Reference group Socio economic & cultural background Personal influences Opinion leaders and social influences
One

person influences the actions and attitudes of others who may be called as 5/9/12 the opinion seekers

Cont
Internal Variables
Motivation Personality and self concept Learning Perception Information processing Attitude Life style
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The shopping activity: Influencing Factors in the Shopping Process

The Customer
Shopping Process Influencing Factors

Personal factors demographics economic situational

family group class culture

Social factors

perception motives learning attitudes personality

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Psychological factors

10

Complaint is an expression of dissatisfaction made to an organization, related to its Click to edit Master subtitle style product/ services or the complaint handling process itself, where a response or resolution is explicitly or implicitly expected.

Complaint Management

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Cont
Complaints

opportunity problems.

offer businesses an to correct immediate

In addition, they frequently provide

constructive ideas for improving products, adapting marketing practices, upgrading services, or modifying promotional material and product information. 5/9/12

Cont..
Many businesses have established

effective and innovative systems for resolving consumer complaints

companies with fair complaint-

management have a competitive edge

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Complaint handling staff

What makes a great complaint manager: Complaint managers need to be patient, articulate, and able to balance fairly the interests of the company with those of the consumer. They also should be able to communicate legitimate consumer complaints to management to help determine whether there is a need for changes in company policies or procedures. All members of a complaint5/9/12 management department should be

 Training can strengthen interviewing

and communications skills and heighten the staff's awareness of the special needs of consumers from different cultural, economic or educational backgrounds.
Also, complaint-management staff

should be familiar with consumer protection laws and with the operations of third-party dispute5/9/12 resolution mechanisms to which

How to publicize the complaint management system:

on posters and signs in the sales and

service area
on contract forms and sales slips in charge account mailings in the use and care manual in advertising -- your company's

complaint system could be the theme 5/9/12

Third party dispute resolution

If complaints cannot be resolved directly

between the consumer and retailer or manufacturer, they should be referred to third-party dispute resolution.
Third-party mechanisms use the services

of unbiased individuals or panels to resolve disputes through

conciliation, mediation and arbitration.
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Basic steps for effective complaint management

1 - Designate a Location to Receive Complaints Consumers need to know where and how to file complaints or make inquiries. Select a place to receive complaints that is visible and accessible to consumers. Publicize the complaint system to encourage consumers to voice their dissatisfaction and to make the good intentions of the company apparent. 2 - Develop a System for Record5/9/12 keeping

3 - Process and Record Complaints Log in the complaint and any relevant data. Categorize it for resolution and recordkeeping. Categories must be clearly defined and exclusive of one another. Assign the complaint to one person for handling. Forward the complaint to another level of authority, if appropriate. 4 - Acknowledge Complaint Consumers do not register complaints with only a casual interest in their 5/9/12 disposition.

5 - Investigate and Analyze the Complaint Be fair. Get both sides of the story. Keep records in the complaint file of all meetings, conversations or findings. 6 - Resolve the Problem in a Manner Consistent with Company Policy Forward the complaint to the appropriate level of authority for resolution. Keep the consumer informed through progress reports. Notify the consumer promptly 5/9/12 of a

8 - Prepare and File a Report on the Disposition of the Complaint, and Periodically
Analyze and Summarize Complaints Circulate complaint statistics and action

proposals to appropriate departments.

Develop an action plan for complaint

prevention.
Make sure the consumer viewpoint is

given appropriate consideration in company

decision making.
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RETAIL SALES FORCE MANAGEMENT

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Cont
Involves several HR functions in a

manner consistent with the retailers organization structure and strategy mix
Retail Sales Force Management

Process
Consists of interrelated personnel

activities

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Cont
Process
Job Analysis Recruitment Selection Training Directing/Supervising Motivating Compensating Evaluating & Controlling
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Job Analysis
Systematic analysis of existing or

proposed position or group of positions within an organization.

Retailer should know the following

information for analyzing a job

Duties Work

and Task
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environment

Tasks to be performed in a retail organization

Managem ent

Merchandisi Store ng and operation buying s Administr ation & legal 5/9/12

HRM

Branding, Marketing , Advertisin Finance & Accounts g & PR

Cont
From a careful job analysis job

description and job specification can be done

Job description is a clearly written

statement that explains the duties, responsibilities, qualifications, and performance expectations of a particular retail employee.
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Cont
Recruitment
Locating and attracting job applicants Set of activities and processes used to

legally obtain a sufficient number of individuals in such a manner that they will be the best in the interest of the retail store.
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Selection

The selection process . 1. Pre interview screening 2.Application screening 3. Psychological testing 4. Personal interview 5.Reference Check
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3. Training:
induction new persons / staff into

organisation
Training of sales staff, as they are the

persons who are in direct contact with the customers

Training of staff/personnel for skill

enhancements.
Communication skill Product knowledge Company policies on returns
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Cont..
Motivation

Success in a retail environment largely depends on the workforce. Given the kind of work hours and the pressure on performance, the retailers needs staff to be completely motivated. The need to influence people within the organization to perform the tasks as needed by the organization is most essential.
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Compensation
Counter- balance Financial Compensation Non- Financial compensation
Promotion Recognition Programs Fringe benefits
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Cont
Evaluation Controlling

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