Page 69 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes

Note On successful submission of trial samples and acceptance by the Buyer and the
Buyer being convinced of the Intent, capability and quality of the Supplier engages the
Supplier into commercial negotiations.



Caselet The Large Retail…

s the average Indian consumer retail-ready or is retail readying the Indian consumer?
Either way, changing shopping habits in the country are giving global retail giants
Ithe perfect setting for their Indian entries.
Take a look at this: the average ticket value (transaction value of goods sold) of the Indian
consumer in large retail formats like Lifestyle, Shopper’s Stop and even malls has doubled
in the last two years.
Lifestyle International stores across the country clock an average of ` 1,500-1,600 ticket
value per consumer, and during festive seasons such as Christmas and Diwali, spending
goes up by 40 per cent averaging around ` 2,000 ticket value per consumer, says Mr Sankar
Suryanarayan, Vice-President, Marketing, Lifestyle International. He is expecting a footfall
of 1.5 million at 11 Lifestyle stores across the country during the next one month.
Mr Gibson G. Vedamani, CEO, Retailers Association of India, said that average spend in
large formats hovered around ` 800-900 two years ago when the country was in the first
stages of the retail boom.
“It has doubled now. Even supermarkets have doubled their ticket value. From ` 250-300
a couple of years ago, they are now seeing an average family billing worth ` 600,” he said
terming this “a good ticket size.”
While demand and potential for more formats will grow, the country’s supply chain is yet
to match the requirement, according to Mr Govind Shrikhande, CEO, Shopper’s Stop.
Lack of enough merchandise and variety is still restricting the Indian shopper, but there
has also been an increase of cash memos by about 20 per cent.
This growth is also accompanied by a significant change in the billing value of non-
apparel products such as cell phones, watches and personal care products.
Source: thehindubusinessline.com

4.3 Types of Buying Decisions

Buying Decision differs from person to person. Deepening upon the need of the person, the
decision gets change; even if the product is small. There are different factors which influences
the nature of buying. Hence buying decision has been classified into four different categories
such as Complex buying behavior, Dissonance Reducing buying behavior, Habitual buying
behavior and Variety seeking buying behavior. These are classified depending upon the degree
of involvement and degree of difference among brands.
1. Complex Buying behavior: This situation involves the high level of involvement from
consumers and the same with the difference among brands. These cases arise when the

64 LOVELY PROFESSIONAL UNIVERSITY