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Consumer Behaviour and Retail Operations

Consumer behavior in retail contexts involves understanding customers' needs, purchase motives, and how they make decisions. Retail managers need to study these behaviors to improve their understanding of different customer segments, the purchase process, and how to enhance the retail experience. Consumer behavior is influenced by demographic factors, levels of purchase involvement, perceived risks, motivations like needs, social motives, and Maslow's hierarchy of needs. Understanding these psychological and social aspects can help retailers improve marketing strategies and business success.

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Mongologa Ndlovahbaitlotli Mmulah Tym
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1K views

Consumer Behaviour and Retail Operations

Consumer behavior in retail contexts involves understanding customers' needs, purchase motives, and how they make decisions. Retail managers need to study these behaviors to improve their understanding of different customer segments, the purchase process, and how to enhance the retail experience. Consumer behavior is influenced by demographic factors, levels of purchase involvement, perceived risks, motivations like needs, social motives, and Maslow's hierarchy of needs. Understanding these psychological and social aspects can help retailers improve marketing strategies and business success.

Uploaded by

Mongologa Ndlovahbaitlotli Mmulah Tym
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Consumer behaviour in the

retail
context
It is the way in which retail consumers make decisions and

act in relation to the consumption of retail products.


We nned to study consumer behaviour to be aware of
The needs as well as the purchase motives of individuals
How demographic change may affect retail purchasing,
The different effects of various promotional tactics
The complexity and process of purchase decisions
The perception of risk for retail purchases
The different market segments based upon purchase
behaviour
How retail managers may improve their chance of
business success based upon understanding what is
required as part of the retail experience

Needs, wants and demand


functions
eg
purchase
of
Needs- basic human requirement that pre
clothes
exist for warmth, covering, social status
Wants- potential to purchase occurs as the

individual feels a drive to satisfy those needs demand- those wants for which the customer
is able to pay

Time taken to shop


Functional- (time efficient) focused

predetermined routine, habitual action


Complex( time required) preplanned/
researched higher risk
Leisure (time-rich activity) emphasis on
browsing and serendipity

Adoption process of
fashion
Trickle down theory- is based upon the premise
that new innovative fashions and styles
originate from the wealthier classes owing to
ability to purchase designer clothing and are
passed down through the middle classes to the
lower socio-economic groups
Trickle up theory- is based upon a process of
fashion and style creation by the lower socioeconomic groups which is followed by the upper
classes prior to being adopted by the middle
classes

Retail buying roles


Initiator- first individual who suggests products
Influencer- provides views and advice which are

valued by others and can subsequently influence


the final decision
Decider- the individual who will take the decision in
the buying process as to what, how, when and
where to buy
Buyer- the individual who actually makes the
purchase
User- the individual who consumes oruses the
product/service

Decision over store


choice
General store characteristics (reputation,

number of stores)
Physical characteristics of the store (dcor,
cleanliness)
Convenience of reaching the store from the
customers location
Products offered (variety, dependability, quality)
Prices charged by the store
Store personnel
Advertising by the store
Friends perception of the store

Theories in consumer
behaviour
The Engel-Kollat-Blackwell (EKB) model has the
decision process as pathways on convergence
passing through various stages of processing prior
to any choice being made
The central process is as follows
1.Problem recognition/ arousal
2.Internal search- alternative evaluation
3.External search- alternative evaluation
4.Choice/ purchase
5.Outcomes as dissonance or satisfaction

Sheths family model of


behaviour

It provides an attempt to replicate the


behaviour of group decision-making

The buying decision


process
Need arousal
Recognition of the need
Level of involvement
Search for information and alternatives
Evaluation of alternatives
Decision
Purchase action
Post purchase feeling/ behaviour

Product category and level


of
purchase
involvement
Convenience- there is frequent purchase with little

effort exerted to compare or judge alternativesthe typical process is low involvement


Shopping- price, quality and value comparisons are
made- the typical process is medium involvement
Specialty- due to the specialist aspects of the
purchase, the perception of quality and value are
relevant. The risk is higher and the process is
higher involvement
Fashion- fashion products are susceptible to peer
and reference groups influences. the typical
process is high involvement

Different aspects of
perceived
risk

Economic risk
Physical risk eg children's toys, electrical
gadgets
Psychological risk- status can be lost
Performance risk

Motivational forces
Taber (1972) suggested that shoppers utilize 6 categories of

personal motivation
Role playing- shopping may be learned and expected behaviour
pattern which , for some becomes an integral part of their role
Diversion- shopping may provide an escape from the daily
routine, a form of recreation, it can provide a diversionary
pastime for individuals of free entertainment for the family
Self gratification- the shopping trip may represent a remedy for
loneliness or boredom, with the act of purchasing being an
attempt to alleviate depression
Learning about new trends
Physical activity
Sensory stimulation- through lights, colours, scents, handling
products

Social motives for


shopping
Social experiences outside the home
Communication with others having similar

interest
Peer group attraction
Status and authority
Pleasure of bargainining

Motives for patronage of


retail
outlet

Convenience
Reputation
Retail environment characteristics eg
ambience, decoration, displays, air
conditioning
Service encounter expectations
Expectations of the merchandise
Expectations of value

Understanding motivationmaslow
hierarchy
of
needs

5- self actualisation
4- Esteem
3- belongingness
2- safety
1- Physiological
Maslow identified 2 motivational types of
sequence mechanism in motivation which are
1. deficiency or tension reducing motives
2. inductive or arousal seeking motives

Demographic factors
These influence demand and are based upon the aggregate

of individual social patterns within the society and these


are:
Slowing birth rates
Average life expectancy
The social structure
Delay of marriage
Value of education
Number of households
Working women
Population mobility is increasing
Ethnic groups

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