940 3 Retail 5th Lecture

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RETAIL MANAGEMENT

LECTURER: VALERIA VOLPONI

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Understand the basic model of consumer

behaviour

process and know the factors that influence

Understand the theory of motivation

Recognise the influence of personality on

consumer choice behaviour

Understand the risk involved in choosing


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marketing strategy development

Why do we study this? Because in order to,retailers must understand consumer

Consumer behaviour may be defined ase process a un er es an n v ua

decision ofwhat, when, where, how and

services


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marketing strategy development

Purchase behaviour is a complex,dimensions

Each individual product or service evokes aspecific and possibly unique response from

s se o cus omers

Each sho in situation is uni ue


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shopping process

THE CUSTOMERTHE CUSTOMER SHOPPING PROCESSSHOPPING PROCESS INFLUENCINGFACTORSINFLUENCINGFACTORS

PERSONALFACTORS

Demographics

Economic

SOCIAL FACTORS

Family

Group

PSYCHOLOGICALFACTORS

Perception

Motives

Situational Culture Learning

Attitudes

Personality


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The question to answer is: How do

According to economic theory, often the

only significant variable to be considered isthe price and the available promotions

But even in the apparently simple case of

bu in a tin of baked beans a sho er in asupermarket, faced by the large number ofcompetitors, may have a number of factors

in mind


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decision making

EXPERIENCEEXPERIENCE

POINT OFSALE

POINT OFSALE

LIFESTYLELIFESTYLE


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Shopping experience: the shoppers have ,they may have had bad experiences with a

particularly good

s a muc un erva ue ac or,particularly by those advertising agencies

takes to sell the brand


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Shoppers lifestyle: Apart from the,shoppers may also demand that it conforms


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The point of sale: Here the shopper will be

display at the point of sale

This display reflects the supermarkets owncontribution, which is in turn influenced by

e uy ng pa erns o s o er cus omers


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Retail promotion: due to the economic,marketing factor, affecting business and

The risk: if I sell one appealing brand ata s pr ce o a rac cus omers or one

week, how do I get the same customers to

customers perceive the real value of the


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The price of the item: is a major factor in- .private labels because they are perceived


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Which of these factors, if any, will

upon the individual shopper

What happens is usually not completelyclear, least of all to the shoppers

emse ves

As a result there are several theoreticalmodels of the shopping decision-makingprocess


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AWARENESSAWARENESS TRIALTRIAL REPEATPURCHASEREPEATPURCHASE


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behaviour

Products that are purchased frequently

Three stages: awareness, trial, repeat

purchase

repeat purchases, even from loyal shoppers,

without oin throu h the sta es ofbuilding awareness and then obtaining trialuse, which has to be successful


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behaviour

Kotler, 1997Proposed an enriched version of this model

INFORMATION SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE DECISION


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behaviour

Evaluation of

The process of

choosing can berepresented as theresu o a num er ofiltering processes,

under the

and some under theretailers


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behaviour

Filtering processesAvailability

Awareness


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All the influencing factors we have seen do,

The most relevant of the models explaining

how they interrelate is the ConsumerDecision Model proposed by Howard

It is made ofsix interrelated components or

variables


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On these six, the three central components ,brand (a) and confidence judging the

image

ey can e oug as e s oconsumer behaviour


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A Attitude: is defined as the extent to

yield satisfaction of a particular need

It spurs the intention to buy the brand


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C Confidence: is defined as the

shoppers degree of certainty that thiseva ua ve u gemen o a ran s correc

If the ud ement is correct it is ver likel

to increase the intention to buy


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Although shown as 3 separate elements

making up brand image, brandrecogn on, a u e owar s a ranand a buyers confidence in the

interrelated

Brand recognition forms a mentalfoundation in the memory, upon which

e o er wo componen s o ran magebuild


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influencing factorsSo far we have seen factors relating to the

features of the product/brandBut in taking their final decisions, and

indeed throu hout the whole rocess

customers are influenced by a wide rangeof factors

Age and lifestyle, situational influences,


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Young, single people not living at

Recreation oriented the are

prospective customers for providersof entertainment


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.couples

Young, no children

They have high joint incomes andtend to s end them

Among this group are the so calledyupp es e ove o e supp ers othe luxury goods


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Youngest child under six

They are the typical first time housebu ers who at the same time bu all

the other durable and householdoods that become art of a home


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Youngest child six or over

They are often the target of the massconsumer advertisers

They represent the archetypalousew e w a am y o ee


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Older married couples, not retired, no

More able to s end on luxuries


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The external circumstances or conditions

purchase decision

ue o e worsen ng o e econom csituation, a consumer may decide to reject

A conviction that the supply of a particularproduct is limited may impel a person tobuy it while it is available


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Abraham Maslow (1954), hierarchy of needs

Due to the worsening of the economicsituation, a consumer may decide to reject

e purc ase en re y

A conviction that the su l of a articularproduct is limited may impel a person to

buy it while it is available


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Within all societies, people ranko ers n o g er or ower pos onsof respect

This ranking results in social classes:

have similar social rank

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Social classes are still existing: in thees ern oun r es ey are ase onoccupation, education, income,

wea t , race, et n c group anpossessions

In the former Soviet Union, wealth and

education and occupation

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Social classes are still existing: in thees ern oun r es ey are ase onoccupation, education, income,

wea t , race, et n c group anpossessions

In the former Soviet Union, wealth and

education and occupation

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Once you have established a proper,

series of retail marketing investments over,

This asset is often referred to as the

customer franchise

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At one extreme it may be derived from the

individual relationship developed face toface by the retailer

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by the consumer resulting from longex osure to a number of retail advertisincampaigns

for variety, but they still retain a positive

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The keyword is:VALUES

of impacts over time: every action must be

Every communication must appeal to thecustomer s eep va ues

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mechanics of shopping

The will either see merchandise and si nsclearly, or they wont

difficulty

They will move through areas at a leisurelyspace or swiftly, or not at all


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Amenabilit and rofitabilit are totall andinextricably linked

, ,

the latter is assured

Build and operate a retail environmentthat fits the highly particular needs of

s oppers an you ve crea e asuccessful store

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Ima ine we are standin in the middle of aparking lot

toward the store

Is it because they are all so damnedexcited to be going there?

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Ma be

But maybe not: remember that a parking lot

speeding cars, exhaust fumes and asphalt, , ,

cold, heat

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Lets join everybody rushing for the store

What do you see ahead? Windows? And

Its hard to tell, because of how the sunlightg ares o e g ass, or ecause s ar an

the lighting is too low

Most retailers dont change the lightingdepending on whether its day ornightmeaning that visibility must bepretty bad during at least one of thoseper o s, no o

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In any case, whatever is in the windows, thescale is wrong

we cant quite see from this distance

ear n m n a e as er peop e wa ,

the narrower their field of peripheral vision

But by time we reach the windows, we donthave the time to stop. Weve got that goodcariovascular parking lot stride going, and

s r ng ng us r g n o e en rance


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sho ers need a landin stri

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A big store can afford to waste some spaceup front

In either case, store merchandisers can dowo sens e ngs w ere e rans on

zone is concerned: they can keep from

And they can take steps to keep that zoneas small as possible


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To say whether a sign or any in-store mediaworks or not, theres only one way to assessit in place

The most common mistake in the designand lacement of si ns and other messa emedia is the thought that theyre going intoa store

When we are talking signs, its no longer a

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,attention

en, you ave o presen your message na clear, logical fashion the beginning, the

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You have to deliver the information the waypeople absorb it: a bit at a time, a layer at atime, and in the proper sequence


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So you cant just look around your store, see

and put the signs there

Every store is a collection of zones and youhave to map them out before you can placea s ng e s gn

Ask ourself What sho ers will be doinhere?


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of messa e and wron for all

others

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The most crucial aspect of shopping is the

People tend to move pretty much as theirbodies allow them to move, as is mostnatural and comfortable

A good store is by definition one that

ex oses the reatest ortion of its oods tothe greatest number of its shoppers for thelongest period of time

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merchandise in our ath and

our field of vision in a way that


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Another fact about how people move: they

,reach right when they are in front of a shelf

How can a retail environment respond?

products are stocked where on a shelf


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How much of what is on dis la insupermarkets is seen by shoppers

the average product on a supermarket shelf

There is a reliable zone in which shopperswill probably see merchandise: it goes froms g y a ove eye eve own o a ou neelevel

Much above that or below and theyprobably wont see it unless they happen tobe looking at intently

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amount of retail sellin s ace

is, if not quite wasted, then


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940 3 Retail 5th Lecture

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