RETAIL SHOPPER BEHAVIOUR UNIT 5

Need for studying consumer behavior The accurate understanding of consumer To consider the external and internal influences for consumer purchasing decision

Some important and external and internal influences are as: Understanding how the need for a product/service was determined. Understanding how information was required by the customer. The process of evaluation of various products and store. The payment process. The post purchase behavior.

Factor’s influencing customer’s decision making Range of merchandise Locational convenience Travel time and distance Socio-cultural background of shopper Factor’s influencing customer’s decision making Stage of family life cycle of consumer

The customer Decision Making process Customer Need Search for Information Internet Media – Print & AV Family & Friends Stores Store visits Purchase decision Evaluation of options

Classification Shoppers Behavior 1. Blinkered Mode: Narrow-minded shoppers 2. Magpie Mode: Information saver and attracted by the display 3. Browser Mode: Rational thinker

SHOPPER PROFILE ANALYSIS Demographics - age, income, gender, tradition, education level, etc. Geo-Demographic Clusters - the customer interests, lifestyles, purchasing behavior, attitudes and more.

Sales Force Management Effective sales force management starts with a qualified sales manager. Recruitment and selection (Match candidates with your needs) Training and development Motivation Compensation Supervision Performance evaluation

The Sales force Management Process Recruitment and Selection Performance Evaluation Training Supervision Development Compen- sation Motivation

Complaint s Management Feedback about the grievances Complaints allow retailers to interact with their customers and acquire detailed information about their service and merchandise.

Types of receiving complaints Feedback from customers Feedback from store employees Customer research

Features of best practice in complaint handling are: Visible measures in place ‘from a customer’s perspective’ How many people stay with an organisation based on the complaint process, Well established processes in managing complaints Effective training courses for all staff to recognise and provide feedback for complaints

CHALLENGES IN RETAILING The first challenge facing the organized retail sector is the competition from unorganized sector. In retail sector, Automatic approval is not allowed for foreign investment. High Taxation Developed supply chain and integrated IT management is absent in retail sector. Lack of trained work force.

(Continued….) Low skill level for retailing management. Fundamental complexity of retailing- rapid price changes, low margins. Cost of business operations is very high in India. Online retailing still to pick up in India