it's part of book in retail management.

2. Customer buying Behavior
• is the sum total of a
consumer's attitudes, preferences,
intentions, and decisions regarding
the consumer's behavior in the
marketplace when purchasing a
product or service.

3. NPD Group, Inc.
• The NPD Group, Inc. (NPD;
formerly National Purchase Diary) is
a market research company.
• provides information about customer buying
behavior that help their clients, both retailers and
vendors, make better, fact – based decisions.
• NPD Group,Inc. systems are designed to make it
easy for retailers to get the data that help them
analyze market performance and make fact-
based decisions.

4. The Buying Process
• The steps consumes go through when
buying a product or service, begins
when customers recognize an
unsatisfied need.

6. Need Recognition
- Is a buying process is triggered when consumers
recognize they have an unsatisfied need.
Types of Needs:
- When consumers go shopping to
accomplish a specific task.
Hedonic needs - when consumer go shopping for
Pleasure.
Utilitarian needs

8. Hedonic needs Can Satisfy:
• Stimulation - Retailers and mall managers use
background music, visual displays,
scents, and malls to create a carnival-
like, to stimulating experience for their
customer.
• Status and power - a store or a service provider
facility is one of the few places
where they get attention and
respect.

9. • Adventure – Customers go shopping because
they enjoy finding bargains, looking for sales,
finding discounts or low price.
Conflicting Needs - Most customers have multiple
needs. Moreover, these needs
often conflict.
- (Cross-shopping)

10. Information Search –Once customers identify a need,
they typically seek information about retailers, channels,
or products to help them satisfy that need.
Source of Information
• Internal sources
• External Sources

11. • Internal sources – are information in a
customer’s memory, such as name, images, and
past experiences with different stores.
Source of Information
• External sources – consist of information
provided by ads and other people.
Amount of information searched - The amount of
information search undertaken depends on the value
customers feel they can gain from searching versus the
cost of search.

12. Reducing Information Search - is to limit the
customer’s search to its store or Web site.
• Everyday low price
Internet, Information Search, and Price Competition
– The Internet has had a profound impact on
customer’s ability to gather external information.

13. Evaluation of Alternatives: The Multiattribute Model
– Customers see a retailer, product, or service as
a collection of attributes or characteristics.
– Predict a customer’s evaluation of a retailer,
product, or service based on
• Its performance on relevant attributes.
• the importance of those attributes to the
customer.

14. A. INFORMATION ABOUT STORES SELLING GROCERIES
STORE CHARACTERISTICS SUPERCENTER SUPERMARKET INTERNET GROCER
GROCERY PRICES 20% BELOW AVERAGE AVERAGE 10% ABOVE AVERAGE
DELIVERY COST ($) 0 0 0
TOTAL TRAVEL TIME (MINUTES) 30 15 0
TYPICAL CHECKOUT TIME (MINUTES) 10 5 2
NUMBER OF PRODUCTS, BRANDS, AND SIZES 40,000 30,000 40,000
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
B. BELIEFS ABOUT STORES PERFORMANCE BENEFITS
PERFORMANCE BENEFITS SUPERCENTER SUPERMARKET INTERNET GROCER
ECONOMY 10 8 6
CONVENIENCE 3 5 10
ASSORTMENT 9 7 5
AVAILABILITY OF PRODUCT INFORMATION 4 4 8
Characteristics of Food Retailer
EXHIBIT 4-2

15. Evaluation of Retailers
IMPORTANCE WEIGHTS PERFORMANCE BELIEFS
CHARACTERISTIC
S
YOUNG SINGLE
WOMAN
PARENT WITH FOUR
CHILDREN SUPERCENTER
SUPERMARKE
T
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
EXHABIT 4-3
Evaluating
Retailers

16. Getting into the Consideration Set
• Consideration set: the set of
alternatives the customer
evaluates when making a
selection.
• Retailers develop programs
influencing top-of-mind
awareness.

17. Purchasing Merchandise or Services
• Customers do not always
purchase a brand with the
highest overall evaluation.
• The high-rated item may
not be available in the
store.

18. Postpurchase Evaluation
• Satisfaction
• A post- Consumption evaluation of how
well a store or product meets or exceeds
customer expectations.
• Becomes part of the Customer’s internal
information that affects future store and
product decisions.
• Builds store and brand loyalty.

19. Types of Buying Decisions
• Extended Problem Solving
– High financial or Social Risk
• Limited Problem Solving
– Some Prior Buying Experience
• Habitual Decision Making
– Store Brand, Loyalty

20. Habitual Decision Making
• Brand Loyalty
– Committed to a Specific Brand
– Reluctant to Switch to a
Different Brand
– May Switch Retailers to Buy
Brand
• Store Loyalty
– Committed to a Specific
Retailer
– Reluctant to Switch Retailers.

21. Social Factors
Influencing the Buying Decision
Process

22. Market Segmentation
• Retail Market segment
– is a group of
customers whose needs
are satisfied by the
same retail mix because
they have similar needs.

23. Approaches for Segmenting Markets
• Demographic segmentation - groups consumers
on the basis of easily measured, objective
characteristics such as age, gender, income, and
education.
• Geodemographic segmentation uses both
geographic and demographic characteristics to
classify consumers.

24. Approaches for Segmenting Markets
• Lifestyle, or psychographics , refers to how
people live, how they spend their time and
money, what activities they pursue, and their
attitudes and opinions about the world in which
they live.
• Buying situations - can influence customers with the
same demographics or lifestyle.
• Benefit segmentation - groups customers seeking
similar benefits.

25. THE END
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