Consumer buying behavior

How do customers make decision with regards to

patronize a retailer and to buy merchandizing? What social and personal factor affect customer purchase decision? How can retailer get customers to visit their stores more often and buy more merchandizing during every visit? Why and how retailers group customers into market segments?

Factor influencing retail shopper

Range of merchandising

Convenience of shopping at particular outlet

Time to travel Socio economic factors Stages of family life cycle

Buying process
stages Selecting retailer Selecting merchandising

Need recognition
Information search evaluation choice visit loyalty

Need recognition
About retailer Retailer & channel Select retailer Store or internet Repeat patronage

Need recognition
About merchandising merchandising merchandising Purchase merchandising Post purchase evaluation

Types of needs
Utilitarian

Hedonics

Stimulation back ground music, visual display scents Social experience food court, chat rooms Learning new trends Status & power Self rewards adventure

Information search
Amount & cost of information searched

Sources of information internal & external

Reducing information search

Evaluation of alternatives
Multi attribute model retailer, product &

service
Store characteristics
Grocery price

Low price
10% less

Local store
MRP

Travel time minutes

Time at counter Range of products

10 min
5 min 20000

2 min
1 min 5000

Fresh products
Ease of finding

always
no

no
yes

MAA
Performance benefits
Economy Convenience assortment

Low price
10 7 8

Local store
6 10 5

MAA
Importance of weight Performance belief

Store characteristics economy Convenience assortment Over all evaluation Young woman Parents 3 children

Young woman 4 10 8

Parent 3 children

10 5 8

Low price 10 7 8

Local store 6 10 5

178 199

159 150

Implication for retailer of MAA

Alternative retailers that customer consider

Characteristics or benefits that customers

consider when evaluating and choosing retailer Customer ratings of each retailers performance on the characteristics The importance weights that customers attach to the characteristics

 Getting in to consideration set

Changing performance beliefs

Adding new benefits

Post purchase evaluation

Satisfaction

Non satisfaction

Market segmentation
Criteria for evaluating market segments

Identifiably & measurable+ Accessibility Size economically viable

Approaches to segmentation
Geographic segmentation

Demographic segmentation
Geodemographic Lifestyle segmentation Buying situation segmentation Composite segmentation