Page 93 - DMGT554_RETAIL_BUYING

Retail Buying

Notes 7.2 Consumer Behaviour

Behaviour refers to the physical actions of consumers that can be directly observed and measured
by others. It is also called overt behavior to distinguish it from mental activities, such as thinking,
that cannot be observed directly. Thus, a trip to The Gap at the mall involves behavior; deciding
whether to go there is not an overt behavior because it cannot be observed by others.

Example: Behaviors include shopping at stores or on the Internet, buying products, and
using credit cards.
Shopping behavior of consumers in urban India has changed over the past few years with
consumers looking for convenience, everything under one roof and a bigger choice of products.
With an increase in double-income households, people do not have much leisure time and seek
the convenience of one-stop shopping.

Did u know? Consumers now seek more information, variety, product availability, better
quality, hygiene and excellent customer service. Hence, the concept of “Value for money”
is picking up.

7.2.1 Consumer Behaviour – A Key to Retail Management

In retailing clear understanding of consumer is paramount to be successful. In recent time, the
concept of retail branding is flourishing in India, which requires considerable consumer behaviour
research. In order to be an effective retailer, one must understand the role of consumer behaviour
study in retailing, as it is one of the most crucial external factor affecting retail firms.

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Caution It is very difficult to judge the consumer behavior because of variation in behaviour
of individual consumers.
Sometime research through comprehensive survey or sometime sharp and minute observation
of customers’ need and observable behavior can help a lot to understand and predict the
consumers’ behavior. If one can analyze the basic building blocks of customers’ behavior a
better understanding of how and why of consumer behavior can be developed.
Following are some of the basic parameter on basis of which one can build detailed understanding
of consumers’ behavior:
1. Understanding of different group of customers and identification of different segments.
2. Customers’ perception towards retail shopping including perceived risk.
3. Knowledge regarding the consumer buying decision process in retail buying.

4. Effectiveness and impact of different promotion tools.
5. Basic buying motives of customers from particular retail stores.
6. Factor affecting consumer buying behavior including demographic social and cultural
factors.
7. Possibilities for continuous improvement and better retail service quality.

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