Consumer Behavior
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Chapter 14 : Consumer in Marketplace
+Introduction to Retailing
The Retail Scene in India
Unconventional Sources of Purchase
+Factors Affecting Outlet Selection
Store Image
Store brands
Retail Advertising and Promotions
Store location
Perceived risk
Shopping orientation
+In-store Influences
In-store Displays
Markdowns and Price-promotions
Store Atmosphere
Stock-outs
Sales Staff
Final Transaction.
Chapter Summary
Retailing, i.e., selling goods to final consumers, includes
both store-based (brick & mortar) and non-store-based retailing (e-tailing,
direct selling, catalog selling, TV selling). In India, store-based selling is
still highly entrenched, while non-store based selling is at a nascent stage.
In the organized retailing sector, many new formats are coming up in India like
speciality stores (single product category, high prices and service levels),
departmental stores (multiple product category, high to average prices and
service levels), hypermarkets (multiple product category, average to low prices
and service levels). India also has super markets which deal primarily in food
and groceries. The consumer outlet selection process includes all the steps in
the product or brand selection process.
Consumers’ retail store selection behavior depends on – store image
(merchandise assortment, price positioning, store layout, credit policies,
atmosphere, service as well as sense of belonging, friendliness, etc.);
retailer brands (help them improve their image in the eyes of its target
consumers as it gives them exclusivity); retail advertising and promotions
(used to attract people to visit the store); and store location (close
proximity to their target consumers’ preferred areas).
Outlet selection by consumers depends on – perceived risk (social, quality,
psychological, physical, time & effort, and financial risk) and shopping
orientations (the style and motivation of the shoppers).
Consumers often get influenced by the in-store atmosphere, which may result
in more or less than intended shopping. It can also influence the choice of
brands in the store. The in-store atmosphere includes – in-store displays
(in-store signage, packaging, on and off shelf displays, etc.); markdowns
and price promotions (price discounts, ‘buy one, get one free’, etc.); store
atmosphere (music, lighting, level of cleanliness, temperature, scent,
crowding, behavior of sales persons, space, store-layout); stock-outs
(shoppers may buy competing brand, go to another store, postpone the
purchase or completely drop it); sales staff (enhance shopping experience);
and final transaction (purchase or rent).
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