INSTITUTE - USB

DEPARTMENT - BBA
Bachelor of Business Administration
Retail Management
21BAT-374

Retail Consumer DISCOVER . LEARN .

EMPOWER 1
 Introduction to Retail
Management
CO1 To describe the concepts, functions, types and importance of Retail
Industry in India.

CO2 To interpret and analyze the requirements of Store Design and Visual
Merchandising in Retail Stores.

CO3 To classify the factors influencing the Retail consumer, consumer behavior
and decision making process

CO4 To evaluate Merchandise Management through retail operation and pricing

http://p2plogistics.co.uk/

CO5 To formulate Customer Relationship strategies by Personalization, Special

Treatment Benefits, Communication Benefits, Rewards and Loyalty
Programs

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Customer Decision making process
This is the process by which consumers
evaluate making a purchasing decision.
The consumer decision making process
is the process by which consumers
become aware of and identify their
needs; collect information on how to
best solve these needs; evaluate
alternative available options; make a
purchasing decision; and evaluate their
purchase.
The Customer Decision making process
It is necessary for the retailer to understand the manner in which the customer makes a decision. This requires
understanding consumer behaviour.
The steps involved in the customer decision making process includes:
• Identification of a need for the product or service
This arises when a customer becomes aware of his need for a particular product or service.
• Utilitarian need :Going shopping to accomplish a certain task.
• Hedonic need: Needs for an entertaining, emotional and recreational experience.
• Types of needs
• Stimulation: Background music, visual displays, scents ,demonstrations etc
• Social experience: Marketplaces are centres of social activity
• Learning new trends: Teenagers go to Apple store to leran about new computer trends.
• Status and power: Customers seek attention and respect
• Self reward: Customers purchase to reward themelves
• Adventure: Customers look for sales and discounts
Identification of a need for the product or service

• Conflicting Needs: Hedonic and Utilitarian need

• Cross shopping: The pattern of buying both premium and low
priced merchandise or patronizing both expensive ,status oriented
retailers and price oriented retailers is called cross shopping.
• Stimulating need recognition
• Window display
• Advertisements
• Promotions

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The Customer Decision making process
• Information Search
• The second step involves gathering information.
• Amount of Information searched
• The costs of search include both time and money.
• Factors influencing the amount of information search
• The nature and use of the product being purchased
• Characteristics of the individual customer
• Marketplace and situational factors affecting information search include
• The number of competing brands and retail outlets
• The time pressure under which the purchase must be made.
• Sources of Information: Internal or external sources
• Internal is from the memory and external is from friends, published sources, salesperson etc.
• Reducing the information search
• Providing variety and good services.
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The Customer Decision making process
• Evaluation of alternatives
• Multiattribute attitude model: It provides a useful way to
summarize how customers use the information they have about
alternative products, evaluate the alternatives, and select the
one that best satisfies their needs.
The model is designed to predict a customer’s evaluation of a product,
service or retailer based on:
• Its performance on relevant attributes
• The importance of those attributes to the customer
Evaluation of alternatives
• Beliefs about Performance
• Importance weights
• Evaluating stores
• Implications for retailers
• Getting into the consideration set: Top in mind awareness
• Changing performance beliefs:Eg:7- Eleven
• Changing importance weights: Importance of convenience can be increased for families
in supermarkets.
• Adding a new benefit New Doc 2020-02-16 12.57.53_2.pdf

New Doc 2020-02-16 12.57.53.pdf

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The Customer Decision making process
• The purchase Decision
The decision is made, whether to buy or not.
It is possible to get close to the purchase but abort the decision to buy for a
number of reasons which can be declined for financing, stock out and other
reasons.
Steps to increase the chances that customers can easily convert their
positive merchandise or service evaluations into purchase are:
• Don’t stock out of popular merchandise
• Reduce the risk of purchasing merchandise by offering liberal return policies and money back guarantees.
• Make it easy to purchase merchandise by having convenient checkout terminals
• Reduce the actual and perceived waiting time in lines at checkout terminals.

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The Customer Decision making process
• Post Purchase Behaviour
• Satisfaction
• Postpurchase evaluation

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ASSESSMENT PATTERN
Theory

Components Continuous Internal Assessment (CAE) Semester End Examination (SEE)

Marks 40 60

Total Marks 100

Sr. No. Type of Assessment Weightage of actual conduct

1 Assignment 10 per assignment

2 Exam 20 per MST

3 Quiz/Test 4 each quiz

4 Surprise Test 12 each test

5 Attendance and class performance 2

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APPLICATIONS
• Concept of Retail Management

• Concept and importance of retail layouts and retail design

• Importance and scope of retailing

• Understanding of various formats of retail management

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 References
1. Levy and Weitz, Retailing Management, 6th Edition Tata McGraw Hill
2. Bajaj, Tuli, Srivastava “Retail Management” 2nd Edition Oxford University Press
3. Gibson “Retail Management “4th Edition Jaico Publication House
4. Dunne Patrick M, Lusch Robert F, Griffith David A, Retailing, (5th Ed.), Thomson
South Western.
5. https://www.creativedisplaysnow.com/types-retail-store-layouts/#what-is-retail-
layout
6.https://www.indeed.com/career-advice/finding-a-job/what-is-visual-
merchandising

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THANK YOU