Retail Consumer

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER  Behaviour of the retail shopper is a subject of study across the

world

 Basic difference lies in the maturity of the markets and their

formats

 In India, the retailers and the retail formats are still evolving  Ten years ago, consumer’s option was the local bania or the fair

price shop

 What could be the reason for shoppers choosing one store over

others?

 Important for retailers to understand the reason for the

shopper’s preference

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER Consider this : Most of the department stores which exist today in India house – 5. Menswear 6. Womenswear 7. Children’s wear and 8. Home section  Menswear section in most of the stores, houses various national

brands like Zodiac, Allen Solly, Louis Philippe, Van Heusen etc.  At the same time all these brands have their own retail outlets  Range available at these stores is also similar  Why should a customer visit a department store and not the company owned retail outlet?  An insight into what provokes a customer to visit and patronize a store, helps the retailer in strategy formulation

RETAIL CONSUMER FACTORS INFLUENCING THE CUSTOMER’S DECISION MAKING SOCIO-CULTURAL BACKGROUND

STAGE OF FAMILY LIFE CYCLE OF CONSUMER

TRAVEL TIME AND DISTANCE FACTORS INFLUENCIN G CUSTOMERS DECISION MAKING

RANGE OF MERCHANDISE

LOCATIONAL CONVENIENCE

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER 1.

RANGE OF MERCHANDISE

 Most important reason for customers to patronize a particular

outlet  Initial curiosity draws a customer. To convert and retain over a

period of time depends on quality and range of merchandise  Merchandise if similar customers find no reason to make a

switch  Range of merchandise offered plays an important role in the

case of categories like durables, books and music, apparel and other lifestyle products

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER

2.

CONVENIENCE OF SHOPPING AT A PARTICULAR OUTLET

 Element of convenience is fast gaining prominence in the world

of organized retail  This is specially true in case of items like grocery, fruits and

chemists.  For example, while buying medicines, most patients would

prefer buying from a chemist near the doctor’s clinic or near the hospital

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER

3.

TRAVEL TIME AND DISTANCE

 This element is fast becoming very critical  Especially true in case of metros like Mumbai, where ravel time

is high  This has resulted in many local areas developing in terms of

shopping , to facilitate buying  We see the emergence of multiple outlets for brands and

department stores and malls making their appearance across most Indian cities

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER 4.

SOCIO-ECONOMIC BACKGROUND AND CULTURE

 This element largely determines the lifestyle of the consumers  Influences the kind of stores that he would be comfortable

shopping in  Consumer buying behaviour varies from market to market and is

largely influenced by the culture of the region. Asian culture & Western culture  The need hierarchy is different for each market  Need that a retailer can fulfill needs to be clearly understood by

RETAIL CONSUMER FACTORS INFLUENCING THE RETAIL SHOPPER 3. STAGE OF THE FAMILY LIFE CYCLE  Stage of the family life cycle to which the customer belongs to,

also largely influences his needs  The need of a young bachelor will be different from the needs

of a family with children in their teens  This will again be different from the requirement of an elderly

retired couple  The retailer needs to be clear about the target market that he is

catering to

RETAIL CONSUMER The customer decision making process  After customer’s buying process, it is necessary for the retailer

to understand the manner in which the customer makes a decision

 This requires an understanding of the consumer behaviour  Need for a product or service starts at the time when the need

for that particular product or service is recognized  Need may be psychological or functional  Next stage is where the customer seeks information about the

product or service and the place where he can make the purchase

RETAIL CONSUMER The customer decision making process  Source of information may be magazine, newspaper, family,

friends, the internet or the television  Any earlier experience of buying the product or service would

also affect he decision to purchase  Depending upon the criteria, the consumer evaluates the

various options available  He then narrows down the choice to a few stores where he may

make a purchase  He may visit a couple of stores before making a decision to buy

RETAIL CONSUMER THE CUSTOMER DECISION MAKING PROCESS

INTERNET

MEDIA PRINT & AV

NEED RECOGNIZED

SEARCH FOR INFORMATION

FAMILY & FRIENDS

STORES

STORE VISITS

EVALUATION OF OPTIONS

PURCHASE DECISION