UNDERSTANDING RETAIL

CONSUMER

PRESENTED BY:-

DEEPAK SRIVASTAV
ROLL NO-14.
PGDM(IB)
 RETAIL CONSUMER
FACTORS INFLUENCING THE CUSTOMER’S DECISION
MAKING
DEMOGRAPHIC
FACTORS

FACTORS
INFLUENCIN
ENVIROMENTAL G
FACTORS CUSTOMERS LIFESTYLES
DECISION
MAKING

PSYCHOLOGICAL
FACTORS
 RETAIL CONSUMER
FACTORS INFLUENCING THE RETAIL SHOPPER

1. DEMOGRAPHIC FACTORS

 Gender

 Age

 Occupation

 Education

 Family size

 Income
 RETAIL CONSUMER

FACTORS INFLUENCING THE RETAIL SHOPPER

2. LIFESTYLE

 Activities and interests

 Nature of occupation

 Availability of leisure
 RETAIL CONSUMER
FACTORS INFLUENCING THE RETAIL SHOPPER

3. PSYCHOLOGICAL FACTORS

 Motives

 Perception

 Learning

 Attitude

 Personality
 RETAIL CONSUMER
FACTORS INFLUENCING THE RETAIL SHOPPER

4. ENVIROMENTAL FACTORS

 Physical Environment.

 Social environment- culture, sub culture , social class.

 RETAIL CONSUMER
The customer decision making process

 After customer’s buying process, it is necessary for the

retailer to understand the manner in which the customer
makes a decision

 This requires an understanding of the consumer

behaviour

 Need for a product or service starts at the time when the

need for that particular product or service is recognized

 Need may be psychological or functional

 Next stage is where the customer seeks information

 RETAIL CONSUMER
The customer decision making process

 Source of information may be magazine, newspaper,

family, friends, the internet or the television

 Any earlier experience of buying the product or service

would also affect he decision to purchase

 Depending upon the criteria, the consumer evaluates the

various options available

 He then narrows down the choice to a few stores where

he may make a purchase

 He may visit a couple of stores before making a decision

to buy
 RETAIL CONSUMER
THE CUSTOMER DECISION MAKING PROCESS

MEDIA
INTERNET PRINT &
AV

PURCHASE
NEED SEARCH FOR STORE EVALUATION
RECOGNIZED INFORMATION VISITS OF OPTIONS DECISION

FAMILY &
STORES
FRIENDS
The decision making process-
Example
Identification of a problem
Identification of Decision Criteria
Allocation of weights to criteria
Development of alternatives
Analyzing of alternatives
Selection of alternatives
Implementation of alternatives
Evaluation of decision alternatives
“My sales Reps need new computers!
Memory and Storage, Display Quality,
Better Life, Warranty, Carrying weight
Memory and Storage-10, Display
Quality -8, Better Life -6,Warranty -4,
Carrying weight-3
Toshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo,
Dell
Toshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
Toshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
“ Toshiba!”
 RETAIL CONSUMER

Level of Consumer Decision

Extensive
Decision Routine
decision

Limited Impulse
decision decision
 Consumer Decision
Rules

Compensatory Non-
Decision Rule compensatory
Decision Rules

Conjunctive
Decision Rule
Lexicographic
Disjunctive Decision rule
Decision Rule