Ch 4
Retailing
Application of consumer buying behavior on retailing
What is consumer buying behavior
• Consumer Buying Behavior refers to the actions taken (both on and
offline) by consumers before buying a product or service
• This process may include consulting search engines, engaging with
social media posts, or a variety of other actions
• In recent past, online selling has put great emphasis on online
consumer decision making
What is nature of consumer buying
behavior
• Consumer behavior can be defined as the decision making process
and physical activity involved acquiring, evaluating, using and
disposing of goods and services
• Consumer behavior focuses on how individuals make decisions to
spend their available resources to satisfy their consumption needs.
Influencing factors for consumer buying
• Demographics such as age, culture, profession, age and background
play major roles in forming consumers' interests and opinions
• Social factors are also very important in this regard
• A person's social groups affect how they shop. Their income,
education level and social class influence their buying behaviors
• There may be many more factors which can effect the consumer
behavior
Types of consumer buying behavior
There are four type of consumer buying behavior:
1. Complex buying behavior
2. Dissonance-reducing buying behavior
3. Habitual buying behavior
4. Variety seeking behavior.
Continued…..
1. Complex buying behavior
• Complex buying behavior occurs when the consumer is highly
involved with the purchase and when there are significant differences
between brands
• This behavior can be associated with the purchase of a new home or
a personal computer
2. Dissonance- reducing buying behavior
• It occurs when the consumer is highly involved but sees little
difference between brands
• Dissonance in marketing causes a conflict or tension within
a consumer considering a product purchase
• This is usually an uncomfortable feeling for the consumer
Continued…
3. Habitual buying behavior
• Habitual buying behavior occurs under conditions of low consumer involvement
and little significant brand difference
• For example, take salt. Consumers have little involvement in this product category -
they simply go to the store and purchase
4. Variety seeking behavior
• Consumers perceive significant differences between brands but are not particularly
involved in the purchase.
• Many groceries fall into this category
• Examples include: different types of biscuit. bread. ice-cream.
• Consumers often alternate between different brands for variety.
Stages of consumer buying behavior
5 Essential Steps in the Consumer Buying Process
• Stage 1: Problem Recognition
Identify the problem
What do you want?
What is your need to be fulfilled?
• Stage 2: Information Gathering
Gather information about product/service
How need can be full filled?
Continued….
• Stage 3: Evaluating Solutions
make alternative list
Competitor Analysis
Decision of best place to shop
Brand decision
• Stage 4: Purchase Phase
In this stage, consumer make the purchase finally as per his plan
• Stage 5: The Post-Purchase Phase
Post use reaction
Output/Result of the purchase (Positive or negitive)
Re-purchase decision is based on feed back after using the product
What is retail consumer behavior
• The Term consumer behavior is defined as the behavior that consumers
display in searching of, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs
• Retail consumer behavior holds great importance regarding retailer and
for his business. Feed back of customer is always important regarding the
growth of retailing business
• Positive post purchase feed backs always enhance the retailing business
and their product
• While negative post purchase feed backs mostly demolish the
product/service and retailing businesses
What is the importance of consumer
buying in retail business
• Increase revenue – The importance of consumer buying behavior lies
in the fact, that we can improve our sales figures when we study
the customers
• We can alter the way we sell our products depending on the ways
that customers buy them.
Application of consumer buying
• Consumer behavior studies are useful to design marketing strategies
by social, governmental an not-for-profit organizations to make their
programmes such as, awareness about AIDS, crime against women,
safe driving, environmental concerns and other more effective
• Its application is mostly useful in almost all retailing businesses
because it helps the retailer to structures and design their polices in
accordance with their aims and obectives
• It is very much beneficial in achieving aims specially in retailing
businesses
Influence of Internet on consumer decision
• Consumers use the Internet in different ways to make
different decisions
• For example, consumers are more likely to seek opinions of others
through social media and product-rating sites when making choices
that have a great deal of personal impact (e.g., healthcare options or
major electronics purchases).
Assignment # 2
• Explain the changes which have taken place on consumer decision
making process due to technological advancement in digita/online
selling
• Assignment submission date is 25th November 2020
• Must be hand written Assignment
• Students should get well prepared regarding the Quiz