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Retail management and consumer behavior, by thinker

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Retail management and consumer behavior, by thinker Retail management and consumer behavior, by thinker Presentation Transcript

  • thinker Saturday 23 October 2010
  • SHOPPING
PROCESS,
 DECISION
MAKING
 PROCESS, DIFFERENT
TYPES
OF
 DECISIONS. - by RAVI PATEL “thinker” Saturday 23 October 2010
  • Welcome to the exciting  world of consumers! 2 Saturday 23 October 2010
  • Top 5 Factors in Apparel Retailing. 1. Latest Trends 2. High-Quality Products 3. Brand Names I want 4. Broad Selection 5. Full Range of Services NOTE: Factors vary by category. Number 1 factor in home products is broad selection. Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15. Saturday 23 October 2010
  • Buying Behavior is the decision processes (>>) and acts of people involved in buying and using products. Saturday 23 October 2010
  • Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • We Are Consumers 24*7! Why? Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • We Are Consumers 24*7! Why? Because: Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • We Are Consumers 24*7! Why? Because: We are always consuming something. Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • We Are Consumers 24*7! Why? Because: We are always consuming something. (like the clothes we are wearing or the bed we are sleeping on) Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • We Are Consumers 24*7! Why? Because: We are always consuming something. (like the clothes we are wearing or the bed we are sleeping on) We are sometimes planning future consumption. Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • We Are Consumers 24*7! Why? Because: We are always consuming something. (like the clothes we are wearing or the bed we are sleeping on) We are sometimes planning future consumption. We are sometimes enjoying the memory of past consumption. Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  • Saturday 23 October 2010
  • Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? To Make Money Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? To Make Money or Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? To Make Money or To Create a Satisfied Customer Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? To Make Money or To Create a Satisfied Customer  Focus on Consumers’ Needs Rather Than Products Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? To Make Money or To Create a Satisfied Customer  Focus on Consumers’ Needs Rather Than Products Identify Consumers’ Latent Needs Saturday 23 October 2010
  • WHAT IS the PURPOSE OF MARKETING? To Make Money or To Create a Satisfied Customer  Focus on Consumers’ Needs Rather Than Products Identify Consumers’ Latent Needs Understand Consumer Behavior Saturday 23 October 2010
  • Consumer Behavior means more than just how a person buys products. Some of the important issues that marketing executives in business organizations face include: 1. What do consumers think about our products and those of our competitors? 2. What do they think of possible improvements in our products? Saturday 23 October 2010
  • 3. H o w d o t h e y a c t u a l l y u s e o u r products? 4. What are their attitudes toward our products and our promotional efforts? 5. What they feel are their roles in the family and society? 6. What are their hopes and dreams for themselves and their families? Saturday 23 October 2010
  • Model of Consumer Behavior Black box Buyer’s Responses ? Psychological   Memory    Percep2on   Mo2va2on   Personality Demographics What is purchased? Environmental  When, Timing? •Family •Culture  How much? For what use? Saturday 23 October 2010
  • Model of Consumer Behavior Black box Buyer’s Responses ? Psychological   Memory    Percep2on   Mo2va2on   Personality Demographics What is purchased? Environmental  When, Timing? •Family •Culture  How much? For what use? Saturday 23 October 2010
  • Need to understand: • why consumers make the purchases that they make? • what factors influence consumer purchases? • the changing factors in our society. Saturday 23 October 2010
  • • Buyers reactions to a firms marketing strategy has a great impact on the firms success. • The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. • Marketers can better predict how consumers will respond to marketing strategies. Saturday 23 October 2010
  • Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. Saturday 23 October 2010
  • 15 step of PROBLEM RECOGNITION Saturday 23 October 2010
  • 25 step of INFORMATION SEARCH Saturday 23 October 2010
  • 35 step of ALTERNATIVE EVALUATION & SELECTION Saturday 23 October 2010
  • 45 step of OUTLET SELECTION & PURCHASE Saturday 23 October 2010
  • 55 step of POST PURCHASE PROCESS Saturday 23 October 2010
  • over Saturday 23 October 2010 all
  • Saturday 23 October 2010
  • Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: • Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. • Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. Saturday 23 October 2010
  • Low-purchase involvement High-purchase involvement Nominal decision making Limited decision making Extended decision making Problem recognition Problem recognition Problem recognition Selective Generic Generic Information search Information search Information search Internal Internal Limited internal Limited external External Alternative evaluation Alternative evaluation Few attributes Many attributes Simple decision rules Complex decision rules Few alternatives Many alternatives Purchase Purchase Purchase Postpurchase Postpurchase Postpurchase No dissonance No dissonance Dissonance Very limited evaluation Limited evaluation Complex evaluation Impulse buying- no conscious planning. Saturday 23 October 2010
  • Saturday 23 October 2010
  • Attributes Affecting Retail Outlet Selection Retail outlet selection involves a comparison of the alternative outlets on consumer’s evaluative criteria: Outlet Image Retailer Brands Retail Advertising Outlet Location and Size Saturday 23 October 2010
  • Saturday 23 October 2010
  • Categories that Effect the Consumer Buying Decision Process Personal Psychological Social Saturday 23 October 2010
  • Categories that Effect the Consumer Buying Decision Process Unique to a particular Personal person. Demographic Factors. Sex, Race, Age etc. Who in the family is Psychological responsible for the decision making. Social Young people purchase things for different reasons than older people. Saturday 23 October 2010
  • Categories that Effect the Consumer Buying Decision Process Personal Motives, Perception, Ability and Knowledge, Ability and Psychological Knowledge, Attitudes, Personality, Lifestyles. Social Saturday 23 October 2010
  • Categories that Effect the Consumer Buying Decision Process Personal Opinion leaders, Roles and Family Influences, Psychological Reference Groups, Social Class, Culture and Sub- Social culture. Saturday 23 October 2010
  • It can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several i is g on alternatives. Every ec n decision making D i process produces a final m a k choice. The output can be an action or an opinion of choice. Saturday 23 October 2010
  • Problem Analysis vs. Decision Making It's important to differentiate between problem analysis and decision making. The concepts are completely separate from one another. Problem analysis must be done first, then the information gathered in that process may be used towards decision making. Saturday 23 October 2010
  • Problem Analysis • Analyze performance, what should the results be against what they actually are? • Problems are merely deviations from performance standards. • Problem must be precisely identified and described. • Problems are caused by some change from a distinctive feature. • Something can always be used to distinguish between what has and hasn't been effected by a cause. • Causes to problems can be deducted from relevant changes found in analyzing the problem. • Most likely cause to a problem is the one that exactly explains all the facts. Saturday 23 October 2010
  • Decision Making • Objectives must first be established. • Objectives must be classified and placed in order of importance. • Alternative actions must be developed. • The alternative must be evaluated against all the objectives. • The alternative that is able to achieve all the objectives is the tentative decision. • The tentative decision is evaluated for more possible consequences. • The decisive actions are taken, and additional actions are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again. Saturday 23 October 2010
  • Situational Influences Consumer behavior is influenced by the circumstances surrounding the purchase of a product. Social surroundings Physical surroundings Temporal effects Purchase task Saturday 23 October 2010
  • Consumer Behavior– you are what you buy… Saturday 23 October 2010
  • Marketing Psychology & C.B. is The only way to know How customers see your business is to look at through their eyes. 4 Saturday 23 October 2010
  • Perception is everything We perceive our environment Half Empty through our senses We respond to stimuli Those responses are our Half Filled behavior Saturday 23 October 2010
  • Consumers’ final purchase activity is the only aspect that is visible. Saturday 23 October 2010
  • Saturday 23 October 2010
  • “The consumer has become a totem pole around which a multitude of actions and ideologies are dancing”. Saturday 23 October 2010
  • Saturday 23 October 2010
  • Saturday 23 October 2010