Retail management and consumer behavior, by thinker

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Retail management and consumer behavior, by thinker

  1. 1. thinker Saturday 23 October 2010
  2. 2. SHOPPING
PROCESS,
 DECISION
MAKING
 PROCESS, DIFFERENT
TYPES
OF
 DECISIONS. - by RAVI PATEL “thinker” Saturday 23 October 2010
  3. 3. 2 Welcome to the exciting  world of consumers! Saturday 23 October 2010
  4. 4. 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
  5. 5. Buying Behavior is the decision processes (>>) and acts of people involved in buying and using products. Saturday 23 October 2010
  6. 6. Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  7. 7. We Are Consumers 24*7! Why? Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  8. 8. We Are Consumers 24*7! Why? Because: Can you think of any moments when you are NOT being a Consumer ? Saturday 23 October 2010
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. Saturday 23 October 2010
  14. 14. Saturday 23 October 2010
  15. 15. WHAT IS the PURPOSE OF MARKETING? Saturday 23 October 2010
  16. 16. WHAT IS the PURPOSE OF MARKETING? To Make Money Saturday 23 October 2010
  17. 17. WHAT IS the PURPOSE OF MARKETING? To Make Money or Saturday 23 October 2010
  18. 18. WHAT IS the PURPOSE OF MARKETING? To Make Money or To Create a Satisfied Customer Saturday 23 October 2010
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 3. How do they actually use our 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
  24. 24. ? Psychological   Memory    Percep2on   Mo2va2on   Personality Demographics Environmental •Family •Culture What is purchased?  When, Timing?  How much? For what use? Model of Consumer Behavior Black box Buyer’s Responses Saturday 23 October 2010
  25. 25. ? Psychological   Memory    Percep2on   Mo2va2on   Personality Demographics Environmental •Family •Culture What is purchased?  When, Timing?  How much? For what use? Model of Consumer Behavior Black box Buyer’s Responses Saturday 23 October 2010
  26. 26. • why consumers make the purchases that they make? • what factors influence consumer purchases? • the changing factors in our society. Need to understand: Saturday 23 October 2010
  27. 27. • 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
  28. 28. 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
  29. 29. 1of5 step PROBLEM RECOGNITION Saturday 23 October 2010
  30. 30. 2of5 stepINFORMATION SEARCH Saturday 23 October 2010
  31. 31. 3of5 step ALTERNATIVE EVALUATION & SELECTION Saturday 23 October 2010
  32. 32. 4of5 step OUTLET SELECTION & PURCHASE Saturday 23 October 2010
  33. 33. 5of5 stepPOST PURCHASE PROCESS Saturday 23 October 2010
  34. 34. over allSaturday 23 October 2010
  35. 35. Saturday 23 October 2010
  36. 36. 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
  37. 37. Low-purchase involvement High-purchase involvement Nominal decision making Limited decision making Extended decision making Problem recognition Selective Problem recognition Generic Problem recognition Generic Information search Internal Limited external Information search Limited internal Information search Internal External Alternative evaluation Few attributes Simple decision rules Few alternatives Alternative evaluation Many attributes Complex decision rules Many alternatives Purchase Purchase Purchase Postpurchase No dissonance Limited evaluation Postpurchase No dissonance Very limited evaluation Postpurchase Dissonance Complex evaluation Impulse buying- no conscious planning. Saturday 23 October 2010
  38. 38. Saturday 23 October 2010
  39. 39. Outlet Image Retailer Brands Retail Advertising Outlet Location and Size Retail outlet selection involves a comparison of the alternative outlets on consumer’s evaluative criteria: Attributes Affecting Retail Outlet Selection Saturday 23 October 2010
  40. 40. Saturday 23 October 2010
  41. 41. Categories that Effect the Consumer Buying Decision Process Personal Psychological Social Saturday 23 October 2010
  42. 42. Categories that Effect the Consumer Buying Decision Process Personal Psychological Social Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision making. Young people purchase things for different reasons than older people. Saturday 23 October 2010
  43. 43. Categories that Effect the Consumer Buying Decision Process Personal Psychological Social Motives, Perception, Ability and Knowledge, Ability and Knowledge, Attitudes, Personality, Lifestyles. Saturday 23 October 2010
  44. 44. Categories that Effect the Consumer Buying Decision Process Personal Psychological Social Opinion leaders, Roles and Family Influences, Reference Groups, Social Class, Culture and Sub- culture. Saturday 23 October 2010
  45. 45. It can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be an action or an opinion of choice. Decision making Saturday 23 October 2010
  46. 46. 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
  47. 47. 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
  48. 48. 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
  49. 49. Consumer behavior is influenced by the circumstances surrounding the purchase of a product. Social surroundings Physical surroundings Temporal effects Purchase task Situational Influences Saturday 23 October 2010
  50. 50. Consumer Behavior– you are what you buy… Saturday 23 October 2010
  51. 51. The only way to know How customers see your business is to look at through their eyes. 4 Marketing Psychology & C.B. is Saturday 23 October 2010
  52. 52. We perceive our environment through our senses We respond to stimuli Those responses are our behavior Perception is everything Half Empty Half Filled Saturday 23 October 2010
  53. 53. Consumers’ final purchase activity is the only aspect that is visible. Saturday 23 October 2010
  54. 54. Saturday 23 October 2010
  55. 55. “The consumer has become a totem pole around which a multitude of actions and ideologies are dancing”. Saturday 23 October 2010
  56. 56. Saturday 23 October 2010
  57. 57. Saturday 23 October 2010

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