In-Store Purchasing Behavior

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 Merchandising Techniques Store Layout and Traffic Patterns Point of Purchase Media Product Shelving Pricing Strategies Packaging Brand Choice: National Versus Private Personal Selling Effects
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Merchandising Techniques
Merchandising techniques have an important influence on consumer shopping behavior. This is particularly true for low involvement purchase decisions. For example, nearly two out of three supermarket purchase decisions are not specifically planned. Because there is generally little consideration of such purchases until the point of sale, merchandising techniques affecting the consumer in the store are often of great significance in securing purchase. A number of topics are discussed under the umbrella of merchandising techniques including store layout, displays, product shelving, pricing strategies, branding and promotional deals.

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Store Layout and Traffic Patterns

A stores interior is organized in such a manner as to accomplish the firms merchandising strategy. Retailers sometimes find however that their layout and design approach is failing to achieve company objectives. In such cases a new store design may be necessary. A recent example of such a change is Kmart.

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Point-of-Purchase Media
More than 80 % of supermarket shoppers making their final buying decision in the store. Effective combination of good store layout and attractive displays can change a humdrum retail environment into one that not only more exiting but also helpful to generate sales.
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 Some of the research had conducted that shows the effectiveness of display in the store.
Of 2473 supermarket shoppers interviewed, 38 percent had purchased at least one brand or item they had never bought before. A study of 5215 customers in supermarkets found that one third of had purchased at least one of the displayed items. Kmart discovered a 251 percent sales increase for sports products featured on continues loop film in point of purchase audiovisual displays.
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In- store display

600
p e r c e n t

15% price reduction Ad feature Feature display synergy BASE (no promo)
+173% +279%

+545%

+128%

500 400 300 200 100

+244%

+35%

+138%
Ad feature + In store Ad feature

BASE No trade supported promo

15% price

Reduction

15% price
reduction

display +
15% price reduction

and display+
price reduction

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Product Shelving
Shelf Height :- Tests conducted by Progressive grocer indicate that the most favorable shelf position is generally at eye level, followed in effectiveness by waist level, and knee or ankle level. Shelf Space:- It is crucial to be given enough shelf space to attract the buyers attention.
Without adequate shelf facings, the items will be lost in the mass of 22000 other multiple facings lining the average supermarkets shelves.
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Pricing Strategies
Price awareness: Although consumers have a critical attitude toward the general price level and supermarket prices in particular, they apparently have difficulty recalling the actual price paid for a previously purchased product.

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 Promotional Pricing: One form of promotional pricing involves multiple pricing, the technique by which retailers price items in multiple quantities such as 2 for 25 Rs., 3 for 49 Rs. Etc.

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 Couponing: This is a form of price dealing in which a cents-off coupon is redeemed during purchase, thus reducing the products price.

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Packaging
One of the most important point-of-sale influences is the package, including graphics, product information contained on the package, and physical design of the package.

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Brand Choice: National Versus Private

For a number of years now, there has been a battle between manufacturers national brands and distributors private brands for brand prominence in certain product categories. Position of Private Brands: The competitive position of private brands differs from industry to industry. In supermarket, taken a single brand, private label products are either first, second or third position in over 40 percent of 476 different supermarket product categories.

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 Generic Brands: Generic or no name brands were pioneered by the French supermarket chain, Carrefour. These products are easily distinguishable due to their basic and plain packaging characteristics coupled with the attribute of primary emphasis on the contents of the package rather than on brand name. Price is an important factor in generics success.
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Personal Selling Effect

There are many product purchase situation in which customers interact with salespeople. Personal selling in which a salesperson interacts with a consumer is referred to as a dyad Researchers have begun to view selling as dynamic interaction in terms of the characteristics not only of the salesperson but also of the buyer, and how the two parties react to each other.
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The Situational nature of Consumer Decisions

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 One of the most important factors influencing the choice and purchasing process is situation surrounding the consumers decision. Depending on the set of circumstances faced by the consumer in making a purchase, behavior may take any number of directions. Thus, consumer behavior may largely depend on the situation.
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 A situation may be viewed as comprising all of those factors particular to a time and place of observation which do not follow from a knowledge of personal (intraindividual) and stimulus (choice alternative) attributes and which have a demonstrable and systematic effect on current behavior.
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 Five Groups of situational characteristics may be identified: 1. 2. 3. 4. 5.

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Physical surroundings Social Surroundings Temporal Perspective Task definition Antecedent states
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Non Store Purchasing Processes

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 Although the vast bulk of consumers purchasing process now take place in stores, there is a growing amount of inhome shopping. Marketers usually refer to this approach as nonstore marketing or direct marketing.

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Significance of Nonstore Buying

According to U.S. census retail trade statistics, in-home buying is increasingly urban and has been growing appreciably faster than total store sales and general merchandise sales for some time. Estimates of nonstore sales buying range from 2 to 12 percent of total retail sales.

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 Why people like telecommunication based merchandising? An increased emphasis on consumer self-identity, with individuality expressed through goods and services, which leads to a desire to consider more items than a store can display. A higher amount of working woman who have less time to shop. Increased leisure-time pursuits of self development and creative expression, which follow less time to shop. Greater demand for specialty products and services that are difficult to get in most shopping centers. Rapid acceptance of new technology such as VCRs, home computers etc. Increased popularity of such recent nonstore innovations as to pay-by-phone, special-interest mail-order catalogs, and televised direct marketing.
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 Why Consumer oppose to buy?:

1. They like to see products in person before they buy 2. They just dont need it. 3. They like to go out to shop. 4. They want to relax while watching TV and dont want to push buttons. 5. They feel they might be tempted to buy products they dont really need. 6. They fear that being hooked up to a computer will invade their privacy.
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Characteristics of in-home Purchasers:

1. 2. 3. 4. 5. Upscale households with few expectations Racial patterns Working Wives Geographic location Other characteristics

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In-Home Shopping Motivations

Convenience The risk of Buying Lifestyle Marketing Implications

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Purchasing Patterns

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 Focuses on two important purchasing patterns:

1. The extent to which consumers develop repeat purchasing patterns 2. The extent to which purchases are unplanned

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Brand Loyalty
A research suggests that an increase in market share is related to improved brand loyalty. Retailers concern for decrease in brand loyalty:
Sophisticated advertising appeals and heavy media support. parity of products in form, content and communication Price competition from private and generic labels General fickleness of consumers Growth of new products competing shelf space and consumer attention
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 The nature of Brand loyalty:

1. Undivided Loyalty: Purchase sequence A A A AAA 2. Divided Loyalty: Purchase sequence A B A B A B 3. Unstable Loyalty: Purchase sequence A A A B BB 4. No Loyalty: Purchase Sequence A B C D E F

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 Factors Explaining Brand Loyalty:

Some socioeconomic, demographics and psychological variables are related to brand loyalty but tend to be product specific Loyalty behavior of an informal group leader influence the behavior of other group members. Some consumer characteristics are related to store loyalty which in turn related store loyalty Brand loyalty is positively related to perceived risk and market structure variables.
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 The effects of out of stock conditions:

The important reason for brand substitution is an out-of-stock condition. The result of OOS condition can effect for short period or long period. Customer may switch brands, shopping at other stores, postponing purchase or altering choice

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 Marketing implications:

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Impulse Purchasing
The nature of Impulse purchasing: 1. Pure impulse 2. Suggestion impulse 3. Reminder impulse 4. Planned impulse
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 The Extent of Impulse buying

More than 33 percent of all purchases in variety and drugstore are unplanned One-half of buying decisions in supermarkets are unplanned Thirty-nine percent of all department store shoppers and 62 percent of all discount store shoppers purchased at least one item on an unplanned basis.

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 Factors influencing impulse purchase: Marketing factors influencing impulse purchasing include mass distribution in self-service outlets with mass advertising and point-ofsale materials and prominent display position and store location.

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