OUTLET SELECTION $ PURCHASE

Model of Retail Outlet selection

Need arousal -Purchase needs -Shopping need Information Processing Brand Evaluation -Outlet attributes -Outlet Image

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Retail Outlet Choice

Post Purchase Evaluation

Factors Determining Store Choice

Store Location -: Closer consumers are

to a store ,the greater their likelihood to purchase from that store. Intercity Choice Intracity Choice Interstore choice

Factors Determining Store Choice

Store Design & Physical Facilities-: The

design characteristics of a store visibly reflect its image and influence consumer purchase decision. It includes elevators, air conditioning, in-store music etc.

Merchandise-: The good & services

offered by a retail outlet i.e. Quality, Pricing, Guarantee, Fashion etc.

Factors Determining Store Choice

1.

2.

3.

Advertising & Sales Promotion-: To inform consumers (New store opening) To persuade consumers for brand or store To remind the store consumers have appreciated

Expenditure of Individuals Drawn to a Store by an Advertised Item

Factors Determining Store Choice

Personnel-: Consumer generally desire to

trade where store personnel are helpful, friendly & courteous.

1. 2.

Customer Services-:

3.

Increase product satisfaction (such as credit, alterations, shopper information) Increase convenience (delivery, telephone ordering & parking) Provide special benefits (Gift wrapping, compalint offices)

Factors Determining Store Choice

a) consumers who are not willing to buy ,may buy after discounts. b) current brand users may buy in advance due to discount .

Clientele-: Store choices have much to doto Clientele-: Store choices have much with with social-class membership. Consumers do their their social-class prefer those stores where person similar to membership.Consumers prefer those themselves are perceived to be shopping. stores where person similar to Discount & Dealspercived to be reduction themselves are -: In-store price influence brand decision. shopping.

Cont..
c) consumer buying competitive brands,may switch to other brand due to price reduction. d) Non product category buyer may buy the brand because its now a better value to substitute product.

Consumer Characteristics & Outlet Choice

Chameleons

Shopping style situation specific or constantly changing

Shopping approach is based on product type, shopping impetus, and purchase task

Collectors/Gatherers Propensity to stockpile items and to purchase

large quantities to either save money or alleviate the need for shopping
Attempt to get the best price and take advantage of retailer guarantees

Foragers

Particular and motivated to purchase only the desired items Willing to search extensively and have little store loyalty; Prefer to shop alone

Hibernants

Indifferent toward shopping, with opportunistic shopping patterns rather than need driven Will often postpone even required purchases Purposeful and speed oriented in shopping; plan before shopping and like to shop alone

Predators

Do not enjoy shopping and tend to shop outlets where assured of getting needed items quickly

Scavengers

Enjoy shopping both to make purchases and as an activity Like to go to sales and consider shopping to be entertainment Make numerous unplanned purchases

Internet Retailing
The global Internet retail market consists of The global Internet retail market consists the total revenues generated through of the total revenues generated through the sale of retail goods via online the sale of retail goods via online channels, valued at retail selling price. channels, valued at retail selling price.

Online Sales by Categories in Billions Dollars

$ Billions

Influences for Outlet Selection

Type Product Type of of Product-: Watch,Grocery,Newspaper Size of Purchase Size of Product Qualityof Purchase Quality of Product Other Benfits Other Benfits

Stockouts
Stockouts occur when the store is temporarily
out of a particular brand. Results in

PURCHASE
Once the consumer has chosen a brand & selected a retail outlet, then he /she takes the final step of completing the transaction.

Cont

Traditionally, acquired the good by paying cash but in developed and developing countries credit plays an important role in completing the purchase transaction Purchase action is generally the last contact a customer has on that shopping trip & also offers the opportunity of creating as lasting impression on the consumers

Purchase Pals

Purchase Pals

Purchase pals works as a influential source who actually accompany consumers on shopping trips. In grocery items, purchase pals were used only 9%,but in electronic equipment purchase pals where used 25%.

Cont..

Male purchase pals are used as sources of product category expertise, product information & retail store & price information Female purchase pals are more often used for moral support and to increase buyers decision.

Purchase Behavior

Consumer make three types of purchases: Trial purchase-First time purchase ,small quantity .Ex-Detergent Repeat purchase-Makes purchases again & again as brand loyalty Long term commitment purchaseAlways stick to the brand.

Modes of Payment

Cash- Making cash payments hand to hand . Card- Making payments using credit cards etc.Like e-payment. Financing- Making payment by E.M.I.

Delivery of The Product

In-store delivery- Delivery at the time of purchase i.e. on the spot delivery. Home Delivery-The product is being delivered at the consumers place. For example- Purchase of furniture. Delivery & Installation-The product is being delivered & installed at the consumers place. For example-A/C, LED/LCD T.V.

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