Retail Marketing and Consumer Behavior, by THINKER

thinker
Saturday 23 October 2010

SHOPPING PROCESS, 
DECISION MAKING 
PROCESS,
DIFFERENT TYPES OF 
DECISIONS.
- by RAVI PATEL
“thinker”

Welcome to the exciting
world of consumers!

Top 5 Factors in Apparel Retailing.
1. Latest Trends
2. High-Quality Products
3. Brand Names I want
4. Broad Selection
5. Full Range of Services
NOTE: Factors vary by category. Number 1 factor in home products

is broad selection.
Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15.

Buying Behavior is the
decision processes (>>) and acts of people
involved in buying and using products.

Can you think of any moments
when you are NOT being a
Consumer ?

We Are Consumers 24*7! Why?

Consumer ?

Because:

Consumer ?

Because:
We are always consuming something.

Consumer ?

Because:

(like the clothes we are wearing or the bed we are sleeping on)

Consumer ?

Because:

We are sometimes planning future
consumption.

Consumer ?

Because:

We are sometimes planning future
consumption.
We are sometimes enjoying the memory of
past consumption.

Consumer ?

WHAT IS the PURPOSE OF
MARKETING?

MARKETING?
To Make Money

MARKETING?
To Make Money
or

MARKETING?
To Make Money
or
To Create a Satisfied Customer

MARKETING?
To Make Money
or
 Focus on Consumers’ Needs Rather Than Products

MARKETING?
To Make Money
or
Identify Consumers’ Latent Needs

MARKETING?
To Make Money
or
Identify Consumers’ Latent Needs
Understand Consumer Behavior

Consumer Behavior means more than just
how a person buys products.
Some of the important issues that marketing
executives in business organizations face
include:
1. What do consumers think about our products
and those of our competitors?
2. What do they think of possible improvements in
our products?
3. H o w d o t h e y a c t u a l l y u s e o u r
products?
4. What are their attitudes toward our

products and our promotional efforts?
5. What they feel are their roles in the

family and society?
6. What are their hopes and dreams for
themselves and their families?

Model of Consumer Behavior
Black box
Buyer’s
Responses
?
Psychological
Memory
Percep2on
Mo2va2on
Personality
Demographics What is purchased?
Environmental When, Timing?
•Family
•Culture How much?
For what use?
Model of Consumer Behavior
Black box
Buyer’s
Responses
?
Psychological
Memory
Percep2on
Mo2va2on
Personality
Demographics What is purchased?
Environmental When, Timing?
•Family
•Culture How much?
For what use?
Need to understand:
• why consumers make the purchases that

they make?
• what factors influence consumer
purchases?
• the changing factors in our society.

• Buyers reactions to a firms marketing
strategy has a great impact on the firms
success.
• The marketing concept stresses that a firm
should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore
need to analyze the what, where, when and
how consumers buy.
• Marketers can better predict how consumers
will respond to marketing strategies.

Stages of the Consumer Buying
Process
Six Stages to the Consumer Buying Decision

Process (For complex decisions). Actual
purchasing is only one stage of the process.
Not all decision processes lead to a purchase.
All consumer decisions do not always include
all 6 stages, determined by the degree of
complexity...discussed next.

15
step
of
PROBLEM
RECOGNITION
25
step
of
INFORMATION
SEARCH
35
step
of
ALTERNATIVE
EVALUATION
&
SELECTION
45
step
of
OUTLET SELECTION
&
PURCHASE
55
step
of
POST PURCHASE
PROCESS
over
all
Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
• Level of Involvement in purchase decision.

Importance and intensity of interest in a product in a
particular situation.
• Buyers level of involvement determines why he/she is

motivated to seek information about a certain
products and brands but virtually ignores others.

Low-purchase involvement High-purchase involvement
Nominal decision making Limited decision making Extended decision making

Problem recognition Problem recognition Problem recognition
Selective Generic Generic
Information search Information search

Information search
Internal Internal
Limited internal
Limited external External
Alternative evaluation Alternative evaluation

Few attributes Many attributes
Simple decision rules Complex decision rules
Few alternatives Many alternatives
Purchase Purchase Purchase
Postpurchase Postpurchase Postpurchase

No dissonance No dissonance Dissonance
Very limited evaluation Limited evaluation Complex evaluation
Impulse buying- no conscious planning.

Attributes Affecting Retail Outlet Selection
Retail outlet selection involves a comparison of the

alternative outlets on consumer’s evaluative criteria:
Outlet Image
Retailer Brands
Retail Advertising
Outlet Location and Size

Categories that Effect the Consumer
Buying Decision Process
Personal
Psychological
Social

Unique to a particular
Personal person. Demographic
Factors. Sex, Race, Age etc.
Who in the family is
Psychological responsible for the decision
making.
Social Young people purchase
things for different reasons
than older people.

Personal Motives, Perception, Ability

and Knowledge, Ability and
Psychological Knowledge, Attitudes,
Personality, Lifestyles.
Social

Personal Opinion leaders, Roles and

Family Influences,
Psychological Reference Groups, Social
Class, Culture and Sub-
Social culture.

It can be regarded as
the mental processes
(cognitive process)
resulting in the selection
of a course of action
among several
s i o n alternatives. Every
e c i g
decision making
D i n
process produces a final
m a k choice. The output can

be an action or an
opinion of choice.

Problem Analysis vs. Decision Making
It's important to differentiate between problem

analysis and decision making. The concepts
are completely separate from one another.
Problem analysis must be done first, then the
information gathered in that process may be
used towards decision making.

Problem Analysis
• Analyze performance, what should the results be against
what they actually are?
• Problems are merely deviations from performance
standards.
• Problem must be precisely identified and described.
• Problems are caused by some change from a distinctive
feature.
• Something can always be used to distinguish between what
has and hasn't been effected by a cause.
• Causes to problems can be deducted from relevant
changes found in analyzing the problem.
• Most likely cause to a problem is the one that exactly
explains all the facts.

Decision Making
• Objectives must first be established.
• Objectives must be classified and placed in order of
importance.
• Alternative actions must be developed.
• The alternative must be evaluated against all the
objectives.
• The alternative that is able to achieve all the objectives is
the tentative decision.
• The tentative decision is evaluated for more possible
consequences.
• The decisive actions are taken, and additional actions are
taken to prevent any adverse consequences from
becoming problems and starting both systems (problem
analysis and decision making) all over again.

Situational Inﬂuences
Consumer behavior is influenced

by the circumstances surrounding
the purchase of a product.
Social surroundings
Physical surroundings
Temporal effects
Purchase task

Consumer Behavior– you are
what you buy…

Marketing Psychology & C.B.
is
The only way to know How
customers see your business is
to look at through their eyes.
4

Perception is everything
We perceive our environment

Half Empty
through our senses
We respond to stimuli
Those responses are our

Half Filled
behavior

Consumers’ final purchase activity is the
only aspect that is visible.

“The consumer has
become a totem pole
around which a
multitude of actions
and ideologies are
dancing”.


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thinker

Saturday 23 October 2010

Saturday 23 October 2010

Saturday 23 October 2010

NOTE: Factors vary by category. Number 1 factor in home products

Saturday 23 October 2010

Saturday 23 October 2010

Saturday 23 October 2010

Can you think of any moments

Saturday 23 October 2010

Can you think of any moments

Saturday 23 October 2010

We are always consuming something.

Can you think of any moments

Saturday 23 October 2010

We are always consuming something.

Can you think of any moments

Saturday 23 October 2010

We are always consuming something.

Can you think of any moments

Saturday 23 October 2010

We are always consuming something.

Can you think of any moments

Saturday 23 October 2010

Saturday 23 October 2010

Saturday 23 October 2010

Saturday 23 October 2010

Saturday 23 October 2010

 Focus on Consumers’ Needs Rather Than Products

Saturday 23 October 2010

 Focus on Consumers’ Needs Rather Than Products

Identify Consumers’ Latent Needs

Saturday 23 October 2010

 Focus on Consumers’ Needs Rather Than Products

Identify Consumers’ Latent Needs

Understand Consumer Behavior

Saturday 23 October 2010

2. What do they think of possible improvements in

4. What are their attitudes toward our

5. What they feel are their roles in the

6. What are their hopes and dreams for

themselves and their families?

• why consumers make the purchases that

Saturday 23 October 2010

Saturday 23 October 2010

Six Stages to the Consumer Buying Decision

Saturday 23 October 2010

Types of consumer buying behavior are determined by:

• Level of Involvement in purchase decision.

• Buyers level of involvement determines why he/she is

Saturday 23 October 2010

Nominal decision making Limited decision making Extended decision making

Information search Information search

Alternative evaluation Alternative evaluation

Purchase Purchase Purchase

Postpurchase Postpurchase Postpurchase

Impulse buying- no conscious planning.

Saturday 23 October 2010

Retail outlet selection involves a comparison of the

Saturday 23 October 2010

Saturday 23 October 2010

Saturday 23 October 2010

Personal Motives, Perception, Ability