Page 64 - DMGT550_RETAIL_MANAGEMENT

Pavitar Parkash Singh, Lovely Professional University Unit 4: Retail Buying Behaviour

Unit 4: Retail Buying Behaviour Notes

CONTENTS
Objectives
Introduction
4.1 The Buying Process

4.2 Process of Vendor Development
4.3 Types of Buying Decisions
4.4 Social Factors Influencing the Buying Process
4.5 Summary
4.6 Keywords
4.7 Review Questions
4.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Define the buying process
 Discuss about the buying decisions

 Explain about the social factors influencing the buying process
Introduction

The core function of the marketing department is to understand and satisfy consumer need,
wants and desire. Consumer behaviour captures all the aspect of purchase, utility and disposal
of products and services. In groups and organization are considered within the framework of
consumer. Failing to understand consumer behaviour is the recipe for disaster as some companies
have found it the hard way. For example, Wal-Mart launched operations in Latin-America with
store design replicating that of US markets. However, Latin America consumer differs to US
consumer in every aspect. Wal-Mart suffered consequences and failed to create impact.
Consumer buying behaviour is influenced by individual’s own personality traits. These
personality traits do not remain the same but change with the life cycle. The choice of occupation
and corresponding income level also play part in determining consumer behaviour. A doctor
and software engineer both would have different buying pattern in apparel, food automobile
etc. Consumers from similar background, occupation and income levels may show a different
lifestyle pattern.
An individual buying behaviour is influenced by motivation, perception, learning, beliefs and
attitude. These factors affect consumer at a psychological level and determine her overall buying
behaviour. Maslow’s hierarchy, Herzberg Theory and Freud Theory try and explain people
different motivational level in undertaking a buying decision. Perception is what consumer
understands about a product through their senses. Marketers have to pay attention to consumer’s
perception about a brand rather than true offering of the product. Learning comes from experience;
consumer may respond to stimuli and purchase a product. A favorable purchase will generate
positive experience resulting in pleasant learning. Belief is the preconceived notion a consumer
has towards a brand. It is kind of influence a brand exerts on consumer.

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