1. 4.CUSTOMER BUYING BEHAVIOR

2. STAGES IN BUYING PROCESS

3. A. Utilitarian Needs (Specific
Shopping )
Men Women Child
B. Hedonic Needs (Shopping for
Pleasure )
1. Stimulation Child Child ---
2. Social Experience Women
3. Learning New trends Women
4. Self reward
5. Adventure

5. RESEARCH TECHNIQUES

13. STAGES IN BUYING PROCESS
1. Need Recognition
A. Types of Needs – 1 Utilitarian Needs (Specific Shopping )
2 Hedonic Needs (Shopping for Pleasure )
• Stimulation
• Social Experience
• Learning New trends
• Status & Power
• Self reward
• Adventure
B. Conflicting Needs
• Cross Shopping – Pattern of buying both premium & low priced merch
C. Stimulating Need Recognition – Tie with a blazer

14. STAGES IN BUYING PROCESS CONTI….
2. Information Search
 Amount of Info searched
- Influencing factors :
a) nature & use of product being purchased
b) characteristics of individual customer
c) aspects of market & buying situation
 Source of information –Internal /External
 Reducing the information search - EDLP

15. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute model
I. Beliefs about Performance
A. Information about stores selling groceries
Store Characteristic Super Center Supermarket Internet Grocer
Grocery Prices 20% below Avg Avg 10% above Avg
Delivery cost 0 0 10
Total travel time 30 15 0
Typical check out time (Minutes
)
10 5 2
No. Of Products ,Brands, &
Sizes
40000 25000 20000
Fresh Produce Yes Yes Yes
Fresh Fish Yes Yes No
Ease of Finding Products Difficult Easy Easy
Ease of collecting nutritional
information about products
Difficult Difficult Easy

16. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute
model
I. Beliefs about Performance
B. Beliefs about Stores Performance Benefits
Performance
Benefit
Supercenter Supermarket Internet grocer
Economy 10 8 6
Convenience 3 5 10
Assortment 9 7 5
Availability of product
information 4 4 8
* 10 = excellent; 1 = poor

17. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute
model contd…
II. Importance Weights
CHARACTERISTIC
PARENT
WITH FOUR
CHILDREN
SUPER
CENTER
SUPERM
ARKET
INTERNET
GROCER
ECONOMY 4 10 10 8 6
CONVENIENCE 10 4 3 5 10
ASSORTMENT 5 8 9 7 5
AVAILABILITY OF PRODUCT INFORMATION 9 2 4 4 8
OVERALL EVALUATION
Young Single Woman 151 153 221
Parent with four children 192 164 156
PERFORMANCE BELIEF
YOUNG SINGLE
WOMAN
IMPORTANCE WEIGHT
* 10 = very important; 1 = very unimportant

18. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute
model contd…
III. Evaluating stores
IV. Implications for retailers-
 Getting into the consideration set
 Changing performance beliefs
 Changing importance weights
 Adding a new benefit

19. STAGES IN BUYING PROCESS CONTI….
4. Purchasing the Merchandise or Service
- Retailers preventive measures
a) No stock outs
b) Appropriate return / exchange policies
c) Credit terms
d) Convenient check outs
e) Minimal waiting time at checkout
5. Post purchase Evaluation

20. TYPE OF BUYING DECISIONS
 Extended Problem Solving -
Extended time & effort is invested
 Limited Problem Solving -
Moderate time investment. Impulse Buying
 Habitual Decision Making -
Little / No effort. Brand Loyalty /Store Loyalty

21. SOCIAL FACTORS INFLUENCING THE BUYING
PROCESS
 Family
 Reference Group – used as a basis of comparison for
beliefs, feelings & behaviors
 Culture – beliefs, moral, values shared by most members
within a society

22. MARKET SEGMENTATION
Group of customers whose needs are satisfied by a similar retail mix
because they have similar needs
 Criteria for evaluating Market segments
 Actionability - Should clearly indicate what action should be taken
to satisfy its needs
Identifiability - Segment size, Target audience to communicate
Accessibility - Ability to communicate to the segment
Size - Target segment should be large enough

23. MARKET SEGMENTATION CONTI…
 Approaches for segmenting Markets
 Geographic
 Demographic
 Geo-demographic
 Lifestyle
 Buying situation
 Benefit segmentation
 Composite segmentation approaches
E