Page 72 - DMGT550_RETAIL_MANAGEMENT

Unit 4: Retail Buying Behaviour

All the above influence the buying decisions of consumers due to following reasons: Notes
They have used the product or brand earlier.
They know what the product is all about. They have complete knowledge about the features and
specifications of the product.
Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell
Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the
same model and were quite satisfied with the product. We tend to pick up products our friends
recommend.

A married individual would show strong inclination towards buying products which would
benefit not only him but also his family members as compared to a bachelor. Family plays an
important role in influencing the buying decisions of individuals.
A consumer who has a wife and child at home would buy for them rather than spending on
himself. An individual entering into marriage would be more interested in buying a house, car,
household items, furniture and so on. When an individual gets married and starts a family, most
of his buying decisions are taken by the entire family.

Every individual goes through the following stages and shows a different buying need in each
stage:
1. Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends Lavishly)

2. Newly Married: Tend to purchase a new house, car, household furnishings. (Spends sensibly)
3. Family with Children: Purchases products to secure his as well as his family’s future.
4. Empty nest (Children getting married)/Retirement/Old Age: Medicines, Health Products,
and Necessary Items.
A Ford Car in the neighbourhood would prompt three more families to buy the same model.

Secondary Groups

Secondary groups share indirect relationship with the consumer. These groups are more formal
and individuals do not interact with them on a regular basis example - Religious Associations,
Political Parties, Clubs etc.

Role in the Society

Each individual plays a dual role in the society depending on the group he belongs to. An
individual working as Chief Executive Officer with a reputed firm is also someone’s husband
and father at home. The buying tendency of individuals depends on the role he plays in the
society.

Social Status

An individual from an upper middle class would spend on luxurious items whereas an individual
from middle to lower income group would buy items required for his/her survival.

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