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Retail Management Customer buying behaviour.pptx
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- 3. Challenges In TheIndustry ☐ Low domestic competition ■ Because of fragmented nature of industry ☐ Lack of exposure to global best practices ■ Low entry barriers for unorganized retailing ■ Moderate entry barriers for organized retailing ☐ Wholesale system under-invested leading to 20-40% wastage ☐ Non level playing field issues ■ Wide differences in treatment of small and large retailers
- 4. Challenges In TheIndustry… ☐ Real Estate low Availability and high cost ☐ Supply Chain Inconsistency ☐ Poor Infrastructure ☐ Lack of Skilled Manpower ☐ Complex tax Structure ☐ Heavy Stamp Duties
- 5. FDI in Indianretailing ☐ Current Indian FDI Regime o FDI is now permitted in retail trade sector: o Private labels – 100% o Single Brand Retailers – 100% o Multibrand Retailers – 51%
- 6. Why FDI? ☐ Improvecompetition ☐ Develop the market ☐ Greater level of exports due to increased sourcing by major players ■ Sourcing by Wal-Mart from China improved multifold after FDI permitted in China Similar increase in sourcing observed for Metro in India Provides access to global markets for Indian producers
- 7. Why FDI?... ☐ Investmentin technology ■ Cold storage chains solve the perennial problem of wastage Greater investment in the food processing sector technology Better operations in production cycle and distribution Better lifestyle Greater level of wages paid by international players usually More product variety Newer product categories Economies of scale to help lower consumer price Increased purchasing capacity of consumers
- 8. Careers In Retailing…. ☐Operations: ■ ■ ■ ■ ■ ■ Zonal managers Area managers Store managers Asst. Store managers Floor managers Department managers ☐ Category management ■ ■ ■ ■ Category managers Buyers Asst category managers Asst. Buyers ☐ Information Technology ■ ■ Software development managers Hardware maintenance managers
- 9. Careers In Retailing…. ☐ ☐ ☐ ☐ ☐ ☐ Businessdevelopment: Online retail managers Project managers Asst. Manager- projects Corporate sales manager Asst. Manager- corporate sales ☐ ☐ ☐ ☐ ☐ Supply chain management: Manager- supply chain Asst. Manager- supply chain Warehouse managers Asst manager- warehouse ☐ ☐ ☐ Customer service: Customer relationship managers Customer facilitators
- 10. Careers In Retailing…. ☐ ☐ ☐ ☐ ☐ Marketingand advertising: Retail marketing managers Pr manager Asst manager- pr Pr executives ☐ ☐ ☐ ☐ Human resource development: Manager training Manager recruitment Hr manager ☐ ☐ ☐ ☐ ☐ Commerce: Manager- finance Manager- audit Manager- collections CAs, CSs
- 11. Requirements for careerin retail 1. Communication skills 2. Ability to speak in Local Language, Hindi, and English speaking skills 3. Friendly personality 4. Well groomed 5. Ability to tackle tricky situations 6. A good team member 7. Respect for the seniors 8. Knowledge of the product 9. Family background 10. Educational background
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- 13. Buying behavior refersto the decision- making process that consumers go through when purchasing a product or service. It involves the actions and attitudes of individuals or organizations when they buy and use products or services
- 14. Understanding buying behavioris important for businesses and marketers, as it helps them to: 1. Identify target markets and customer needs 2. Develop effective marketing strategies and tactics 3. Create products and services that meet customer needs and preferences 4. Build strong relationships with customers and improve customer satisfaction.
- 15. Buying behaviour isinfluenced by various factors, including: Cultural Factors: Shared values, beliefs, and behaviors of a society Social Factors: Reference groups, family, social class, and other social influences Personal Factors: Individual characteristics such as personality, lifestyle, motivation, perception, attitudes, and learning Psychological Factors: Perception, motivation, learning, and attitudes Economic Factors: Income, employment, inflation, and overall economic conditions By understanding these factors and stages, retailers can develop effective strategies to influence customer buying behavior, enhance customer satisfaction, and drive sales.
- 16. Stages of theBuying Process Need Recognition: Customers become aware of a need or problem Information Search: Customers gather information about products or services Evaluation: Customers evaluate alternatives and make a decision Purchase Decision: Customers make the final decision and select a product or service Post-Purchase Behavior: Customers assess their satisfaction and likelihood of future purchases
- 17. There are differenttypes of buying behavior, including: 1. Routine buying behavior: Repeat purchases of familiar products –News paper, Magazine, Milk, Eggs, Bread 2. Limited buying behavior: Purchasing a product with some degree of evaluation: Cosmetics, seeks advice and suggestions 3. Extensive buying behavior: Purchasing a product with a high degree of evaluation, Comparisions, reviews– Mobiles, Laptops, Electronic gadgets 4. Impulsive Buying Decisions :Impulsive buying decisions are made on the spur of the moment, without much thought or evaluation. Examples include buying a snack or utility Item.
- 18. 5. Habitual BuyingDecisions: Habitual buying decisions are made out of habit, without much thought or evaluation. Examples include buying a daily newspaper or a favorite snack. 6. Complex Buying Decisions: Complex buying decisions involve a high degree of evaluation and comparison among available options, and may require expert advice. Examples include buying a business software or a medical device. 7. Dissonance-Reducing Buying Decisions: Dissonance-reducing buying decisions involve a high degree of evaluation and comparison among available options, in order to reduce post-purchase dissonance. Examples include buying a high-end luxury item. 8. Variety-Seeking Buying Decisions: Variety-seeking buying decisions involve seeking new and different products or experiences. Examples include trying a new restaurant or a new type of cuisine.
- 19. These categories arenot mutually exclusive, and buying decisions can involve a combination of these factors.
- 20. Stages of theBuying Process Need Recognition: Customers become aware of a need or problem Information Search: Customers gather information about products or services Evaluation: Customers evaluate alternatives and make a decision Purchase Decision: Customers make the final decision and select a product or service Post-Purchase Behavior: Customers assess their satisfaction and likelihood of future purchases
- 21. Different Types of Buyers •The Researcher or Showroomer • The Deal Seeker or Bargain Hunter • The Window Shopping Wanderer • The Decisive, Take Charge Type • The Sociable Chatter • The In & Out Sure Buyer • The Angry, Demanding Pessimist • The Regular
- 22. The Researcher orShowroomer Indecisive and willing to shop around Focus on Quality of the product or service instead of price Highlight other benefits or deals Tangential In-store offers, like great loyalty programs or warranty policies
- 23. The Deal Seekeror Bargain H unter Money-Focused and Frugal They are not impulse buyers. Haggle over price Openly complain about how expensive a certain product is Add perceived value to any purchase Offer flat discount
- 24. The Window Shopping Wanderer Non-Committal, Leisurely Enjoyshopping for shopping purpose Don’t be pushy, offer help and suggestions
- 25. The Decisive, TakeCharge Typ e Resolute and Determined They already know what they want They look carefully at the product description, price, Sourcing and reviews Acknowledge their research and take a passive approach Ensure accurate details, stay active on social media, address all negative reviews
- 26. The Sociable Chatter Sociableand Easy going Engage in conversation and actively listen Steer them gently towards making a purchase If you don’t have time or notice other customers waiting
- 27. The In &Out Sure Buyer They already made up their mind They area mission to be in and out of store in record time Hurried & Straight Forward; Time is typically of the essence Don’t bother to sell anything Facilitate a fast and easy shopping experience Quick billing solutions; faster check-out counters
- 28. The Angry, DemandingPessim ist Loud, Angry and proud of it Irrational shoppers; Looking for reasons to get upset Looking for force deals Stay Clam and protect your staff from their wrath Don’t show any emotions Ask them what would be the fair solution
- 29. The Regular Affable andGenerous Thank them You wouldn’t be doing what you do without this group Offer generous loyalty programs Incentivize frequent visits Small gifts on their special days