Consumer Behaviour & Retail
Research
Introduction
• Consumers have wide choice
• Retailers- who understand the needs and wants of the
customer- are successful
...
Consumer information- four parts
• Demographics
• Psychographics
• Geographics
• Behavioristics
Demographics
• Statistics about any given population base
• These variables are used to help retailers about selecting bet...
Psychographics
• Refers to lifestyle analysis
• Provides insights into what consumers do
• includes info on activities,int...
Geographics
• helps to find out where the customers are
located
• divided into separate geographic area
• Nation,state,reg...
Behavioristics
• Subdivided into retailers current or potential
markets based on buying responses,product
usage pattern,pr...
Consumer behaviour
• Relates to how consumers buy products
• Reflects to the totality of consumers decisions
wrt to acquis...
Consumer decision making process
Problem awareness
• Consumer buys only when he is aware of the need
• Problems are associated with unsatisfied consumer
ne...
Information search
• Next step after problem recognition
• Consumer will search for information to solve the
problem
• Dep...
Alternative evaluation
• After search and gathering all information to
solve, the consumer must make the decision
for best...
Purchase
• Actually purchases or does not purchase the
product
Post purchase evaluation
• if consumer is happy- he will make further
purchases
• If not happy- will make reevaluation
• C...
In store decision making process
RETAIL INFORMATION SYSTEMS
AND RETAIL RESEARCH
RIS
• Data: News facts and figures which are
unorganized
• Information: A meaningful body of facts
organized around any to...
RIS
• A method for systematically
gathering, analyzing, storing,utilizing valuable retail
information and data
• facilitat...
RIS
• Could be used in Supply chain mgt
• Data warehousing
• Distribution
• Pricing
• Merchanidising
• IMC
• Product acqui...
RIS
Inputs
-Mission
--Vision
- Objectives
- Situational
analysis
- Environment
scanning
- strategic plans
Processes
-Data ...
Benefits of RIS
• Development of an effective RIS helps to ensure
that the system is fully integrated into the overall
ret...
RIS- facilitators
• Universal Product Code (UPC): Used along with a optic
scanner to read the bar code and gather the part...
RIS- facilitators
• Point of sale terminal (POS)
• Data from UPC collected and sent to centralized location for
analysis
•...
RIS- facilitators
• Self checkout systems: A format in which
shoppers scan,bag and pay for their own
purchases
• Outsourci...
MARKETING RESEARCH
Marketing research
• Research conducted to identify and define
marketing opportunities and problems,
generate, refine and ...
Marketing Research process
1. Formulate the research problem
2. Conceptualize a research design
3. Create a data collectio...
Formulate the research problem
• looks for cause
• Formulate the research problem
• Internal/External
• Clearly define the...
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Consumer behavior and retail research

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Consumer behavior and retail research

  1. 1. Consumer Behaviour & Retail Research
  2. 2. Introduction • Consumers have wide choice • Retailers- who understand the needs and wants of the customer- are successful • Many variables to identify and understand the retail consumer • Retailer that integrates the above information is able to achieve profitability • Thus retailers need to research on their customers – who, and why for a decision • This data can be used to select the target market and integrate it into RIS- Retail Information system
  3. 3. Consumer information- four parts • Demographics • Psychographics • Geographics • Behavioristics
  4. 4. Demographics • Statistics about any given population base • These variables are used to help retailers about selecting better target markets/segments for business • Retailer can use this data to help forecast product/service sales • and to develop better communication with customers • Includes data on population sizes,no of households in a given market area,household sizes,income levels,education,gender age occupation etc • Most popular method and easiest to obtain • Alone may not be enough but when tied to product buying situation- leads to info about consumer preferences • Most common- age ,income,ethinicity
  5. 5. Psychographics • Refers to lifestyle analysis • Provides insights into what consumers do • includes info on activities,interests,and opinions • utilizes also VALS
  6. 6. Geographics • helps to find out where the customers are located • divided into separate geographic area • Nation,state,region etc
  7. 7. Behavioristics • Subdivided into retailers current or potential markets based on buying responses,product usage pattern,product/store loyalty • Develop user profiles and their responses to retail mix elements • Eg 80-20 rule
  8. 8. Consumer behaviour • Relates to how consumers buy products • Reflects to the totality of consumers decisions wrt to acquisition,consumption,disposition of goods services etc • Clear picture will help retailer to understand how to increase sales • How they make purchase decisions- which store to enter and which merchandise to select
  9. 9. Consumer decision making process
  10. 10. Problem awareness • Consumer buys only when he is aware of the need • Problems are associated with unsatisfied consumer need • Need recognition – conscious and subconscious • Eg exam and textbook, food retailing • Need to study needs to formulate as to why a consumer buys from a particular outlet • never fully stated • Need to develop better understanding about customer motivations
  11. 11. Information search • Next step after problem recognition • Consumer will search for information to solve the problem • Depending upon the time,effort and cost associated – info search may take long or short time • Internal search- based on experience • External search- find out info • Thus retailers need to provide info about itself so that the consumers are aware when they attempt to satisfy needs and wants
  12. 12. Alternative evaluation • After search and gathering all information to solve, the consumer must make the decision for best alternative • If routine- less time • If new- long term phase- for this phase, retailer must supply all info and prove that how he can satisfy the needs and wants
  13. 13. Purchase • Actually purchases or does not purchase the product
  14. 14. Post purchase evaluation • if consumer is happy- he will make further purchases • If not happy- will make reevaluation • Customer service is important in this phase • Happy customers- positive word of mouth advt • Cognitive dissonance: consumers doubt about products – research and customer feedback
  15. 15. In store decision making process
  16. 16. RETAIL INFORMATION SYSTEMS AND RETAIL RESEARCH
  17. 17. RIS • Data: News facts and figures which are unorganized • Information: A meaningful body of facts organized around any topic • Once raw data is gathered and organized- retail information results • Retailers managers need to inform themselves with sufficient information to make decisions possible • Data used- from customers, the marketplace, the retail environment, employees and competition
  18. 18. RIS • A method for systematically gathering, analyzing, storing,utilizing valuable retail information and data • facilitates the process of finding solutions to problems • The process of collecting, organizing, analyzing, disseminating data relating to particular area is called as Market research • can be high tech or low tech • could be used in almost all areas of operation • Generally accessible to all users but specific enough to generate solutions to any retail problems • RIS – could be used among store groups,vendors,internal buyers,planners,dc
  19. 19. RIS • Could be used in Supply chain mgt • Data warehousing • Distribution • Pricing • Merchanidising • IMC • Product acquisition • Strategy
  20. 20. RIS Inputs -Mission --Vision - Objectives - Situational analysis - Environment scanning - strategic plans Processes -Data collection and interpretation - Control of information Systems Data storage ,retrieval and updates Outputs Data dissemination to internal and external public
  21. 21. Benefits of RIS • Development of an effective RIS helps to ensure that the system is fully integrated into the overall retail management plan • Effective RIS- allow for continuous data updation • Necessary to be competitive in todays retail environment • Use RIS to access data regarding which items have the highest turnover rates and where EOQ items have to be ordered
  22. 22. RIS- facilitators • Universal Product Code (UPC): Used along with a optic scanner to read the bar code and gather the particular data • A barcode which stores all pertinent product information • Quality of codes is important : unscannable, erroneous- concern- additional expense for improper information fed into an RIS • A typical UPC has a company identifier,specific SKU built into it • US and Canada- 12 digit • EAN 13 EAN 8
  23. 23. RIS- facilitators • Point of sale terminal (POS) • Data from UPC collected and sent to centralized location for analysis • Used by managers to make decisions regarding inventory,merchandise advt,accounting,planning etc • POS – another facilitator in RIS • A computer workstation designed to collect info from sale of products or services • Each workstation has optional peripherals- barcode readers,scanners,invoice printers,magnetic card readers. Can be fixed ,handheld or both. • Effective in providing data to generate retail information • RFID
  24. 24. RIS- facilitators • Self checkout systems: A format in which shoppers scan,bag and pay for their own purchases • Outsourcing: certain expertise
  25. 25. MARKETING RESEARCH
  26. 26. Marketing research • Research conducted to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions, monitor marketing performance and improve understanding of marketing as a process
  27. 27. Marketing Research process 1. Formulate the research problem 2. Conceptualize a research design 3. Create a data collection instrument 4. Select a sample 5. Write the research proposal 6. Data collection 7. Analysis and interpret the data 8. Conclusion
  28. 28. Formulate the research problem • looks for cause • Formulate the research problem • Internal/External • Clearly define the problem Research design: Depends on the type of data to be collected Can be observation Survey Study It is a guide for the entire process

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