retail marketing and consumer behavior, by thinker
TRANSCRIPT
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 1/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 2/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 3/57
2
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 4/57
Top 5 Factors in Apparel Retailing.
1. Latest Trends2. 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 productsis broad selection.
Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 5/57
Buying Behavior is the
decision processes (>>) and acts of people
involved in buying and using products.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 6/57
Can you think of any momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 7/57
We Are Consumers 24*7! Why?
Can you think of any momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 8/57
We Are Consumers 24*7! Why?
Because:
Can you think of any momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 9/57
We Are Consumers 24*7! Why?
Because:
We are always consuming something.
Can you think of any momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 10/57
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 momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 11/57
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 momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 12/57
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 momentswhen you are NOT being aConsumer ?
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 13/57Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 14/57Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 15/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 16/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 17/57
WHAT IS the PURPOSE OF
MARKETING?
To Make Money
or
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 18/57
WHAT IS the PURPOSE OF
MARKETING?
To Make Money
or
To Create a Satisfied Customer
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 19/57
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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 20/57
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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 21/57
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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 22/57Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 23/57Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 24/57
?
PsychologicalMemory
Percep2on
Mo2va2on
Personality
Demographics
Environmental•Family
•Culture
What is purchased?
When, Timing?
How much?
For what use?
Model of Consumer Behavior
Black box
Buyer’sResponses
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 25/57
?
PsychologicalMemory
Percep2on
Mo2va2on
Personality
Demographics
Environmental•Family
•Culture
What is purchased?
When, Timing?
How much?
For what use?
Model of Consumer Behavior
Black box
Buyer’sResponses
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 26/57
• 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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 27/57
• Buyers reactions to a firms marketing
strategy has a great impact on the firmssuccess.
• The marketing concept stresses that a firm
should create a Marketing Mix (MM) thatsatisfies (gives utility to) customers, thereforeneed to analyze the what, where, when andhow consumers buy.
• Marketers can better predict how consumerswill respond to marketing strategies.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 28/57
Stages of the Consumer BuyingProcess
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
1 5
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 29/57
1of5 s t e
p
PROBLEM
RECOGNITION
Saturday 23 October 2010
2 5
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 30/57
2of5 s t e
p
INFORMATIONSEARCH
Saturday 23 October 2010
3 5
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 31/57
3of5 s t e
p
ALTERNATIVEEVALUATION
&
SELECTIONSaturday 23 October 2010
4 5
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 32/57
4of5 s t e
p
OUTLET SELECTION
& PURCHASE
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 33/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 34/57
overall
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 35/57
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 36/57
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 ismotivated to seek information about a certain
products and brands but virtually ignores others.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 37/57
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 searchInternal
Limited external
Information searchLimited internal
Information searchInternal
External
Alternative evaluation
Few attributesSimple decision rules
Few alternatives
Alternative evaluation
Many attributesComplex decision rules
Many alternatives
Purchase Purchase Purchase
PostpurchaseNo dissonance
Limited evaluation
PostpurchaseNo dissonance
Very limited evaluation
PostpurchaseDissonance
Complex evaluation
Impulse buying- no conscious planning.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 38/57
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 39/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 40/57
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 41/57
Categories that Effect the Consumer
Buying Decision Process
PersonalPsychological
Social
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 42/57
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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 43/57
Categories that Effect the Consumer
Buying Decision Process
PersonalPsychological
Social
Motives, Perception, Ability
and Knowledge, Ability and
Knowledge, Attitudes,
Personality, Lif estyles.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 44/57
Categories that Effect the Consumer
Buying Decision Process
PersonalPsychological
Social
Opinion leaders, Roles andFamily Influences,
Reference Groups, Social
Class, Culture and Sub-
culture.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 45/57
It can be regarded as
the mental processes(cognitive process)resulting in the selectionof a course of action
among severalalternatives. Everydecision makingprocess produces a final
choice. The output canbe an action or anopinion of choice.
D e c i s i o n
m a k i n g
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 46/57
Problem Analysis vs. Decision Making
It's important to differentiate between problemanalysis and decision making. The conceptsare completely separate from one another.Problem analysis must be done first, then theinformation gathered in that process may be
used towards decision making.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 47/57
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 distinctivefeature.
• 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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 48/57
Decision Making
• Objectives must first be established.
• Objectives must be classified and placed in order ofimportance.
• 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 aretaken to prevent any adverse consequences from
becoming problems and starting both systems (problem
analysis and decision making) all over again.
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 49/57
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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 50/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 51/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 52/57
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
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 53/57
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 54/57
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 55/57
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 56/57
Saturday 23 October 2010
8/8/2019 Retail Marketing and Consumer Behavior, By THINKER
http://slidepdf.com/reader/full/retail-marketing-and-consumer-behavior-by-thinker 57/57