Consumer Buying Behaviour Stages Involved Need recognition Types

Consumer Buying Behaviour

Stages Involved • Need recognition – Types of needs – Utilitarian Needs-When consumers go for shopping to accomplish a specific task (associated with work) – Hedonic Needs-When consumers go for shopping for pleasure (associated with fun) – Conflicting Needs- leads to inconsistent buying behaviour sometimes (Cross Shopping)

Hedonic Needs-Retailer’s Role • Simulation-Advertising, Direct Mail, Publicity, Special Events, window display, visual merchandising, sales people • Social Experience (food courts in malls, chat rooms etc. , ) • Learning new Trends- Visit to shops/websites to get information • Status and Power- eg. , resorts, spa clubs with medical consultations, spiritual talks, healthy cuisine etc. , • Self Reward-eg. , perfumes, cosmetics- personalized makeovers by retailers • Adventure-Hunting from bins arranged by off price retailers

Information Search • Depends on amount and value of search • Internal Sources-Memory of names, images, past shopping experiences • External Sources- Advertisements, References • Reducing info search(by retailers)– websites (nike, dell, www. autobytel. com) – Wide Assortment, prominent pricing strategy(wal mart)

Evaluation of Alternatives • Multi Attribute Model – To predict consumer evaluation of product, service, retailer based on – Beliefs about performance – Importance Weights – Evaluation

Multi-Attribute Model Information Needed • Alternative retailers consumers can consider • Characteristic/Benefits Sought in Making Store and Merchandise Choices • Ratings of Alternative Performance on Criteria • Importance weights that consumers attach to the merchandise

Eg. , Characteristics About Food Retailers

Evaluation of Retailers

Evaluation of Alternatives (Multi Attribute Model) Info Jennifer Used in Buying Suit

Implication for Retailers The model indicates • customers evaluation criteria – Alternative retailers they consider – Benefits sought – Weightage for benefits • suggest tactics to influence them – Increase beliefs about store’s performance- getting into the consideration set (top of mind awareness) – Decrease performance beliefs of competing stores in consideration set – Changing importance weights – Adding new beliefs

Purchasing the Merchandise Retailer’s check points • Enough stock of popular merchandise • Liberal policies • Offer Credit • Convenient check out terminals • Help in reducing shopping time

Post Purchase Evaluation • Satisfaction • Dissonance Types of buying decisions • Extended problem solving(when risk and uncertainty is involved) • Limited problem solving • Habitual decision making (brand & Store loyalty)