3. A. Utilitarian Needs (Specific
Shopping )
Men Women Child
B. Hedonic Needs (Shopping for
Pleasure )
1. Stimulation Child Child ---
2. Social Experience Women
3. Learning New trends Women
4. Self reward
5. Adventure
13. STAGES IN BUYING PROCESS
1. Need Recognition
A. Types of Needs – 1 Utilitarian Needs (Specific Shopping )
2 Hedonic Needs (Shopping for Pleasure )
• Stimulation
• Social Experience
• Learning New trends
• Status & Power
• Self reward
• Adventure
B. Conflicting Needs
• Cross Shopping – Pattern of buying both premium & low priced merch
C. Stimulating Need Recognition – Tie with a blazer
14. STAGES IN BUYING PROCESS CONTI….
2. Information Search
Amount of Info searched
- Influencing factors :
a) nature & use of product being purchased
b) characteristics of individual customer
c) aspects of market & buying situation
Source of information –Internal /External
Reducing the information search - EDLP
15. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute model
I. Beliefs about Performance
A. Information about stores selling groceries
Store Characteristic Super Center Supermarket Internet Grocer
Grocery Prices 20% below Avg Avg 10% above Avg
Delivery cost 0 0 10
Total travel time 30 15 0
Typical check out time (Minutes
)
10 5 2
No. Of Products ,Brands, &
Sizes
40000 25000 20000
Fresh Produce Yes Yes Yes
Fresh Fish Yes Yes No
Ease of Finding Products Difficult Easy Easy
Ease of collecting nutritional
information about products
Difficult Difficult Easy
16. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute
model
I. Beliefs about Performance
B. Beliefs about Stores Performance Benefits
Performance
Benefit
Supercenter Supermarket Internet grocer
Economy 10 8 6
Convenience 3 5 10
Assortment 9 7 5
Availability of product
information 4 4 8
* 10 = excellent; 1 = poor
17. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute
model contd…
II. Importance Weights
CHARACTERISTIC
PARENT
WITH FOUR
CHILDREN
SUPER
CENTER
SUPERM
ARKET
INTERNET
GROCER
ECONOMY 4 10 10 8 6
CONVENIENCE 10 4 3 5 10
ASSORTMENT 5 8 9 7 5
AVAILABILITY OF PRODUCT INFORMATION 9 2 4 4 8
OVERALL EVALUATION
Young Single Woman 151 153 221
Parent with four children 192 164 156
PERFORMANCE BELIEF
YOUNG SINGLE
WOMAN
IMPORTANCE WEIGHT
* 10 = very important; 1 = very unimportant
18. STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute
model contd…
III. Evaluating stores
IV. Implications for retailers-
Getting into the consideration set
Changing performance beliefs
Changing importance weights
Adding a new benefit
19. STAGES IN BUYING PROCESS CONTI….
4. Purchasing the Merchandise or Service
- Retailers preventive measures
a) No stock outs
b) Appropriate return / exchange policies
c) Credit terms
d) Convenient check outs
e) Minimal waiting time at checkout
5. Post purchase Evaluation
20. TYPE OF BUYING DECISIONS
Extended Problem Solving -
Extended time & effort is invested
Limited Problem Solving -
Moderate time investment. Impulse Buying
Habitual Decision Making -
Little / No effort. Brand Loyalty /Store Loyalty
21. SOCIAL FACTORS INFLUENCING THE BUYING
PROCESS
Family
Reference Group – used as a basis of comparison for
beliefs, feelings & behaviors
Culture – beliefs, moral, values shared by most members
within a society
22. MARKET SEGMENTATION
Group of customers whose needs are satisfied by a similar retail mix
because they have similar needs
Criteria for evaluating Market segments
Actionability - Should clearly indicate what action should be taken
to satisfy its needs
Identifiability - Segment size, Target audience to communicate
Accessibility - Ability to communicate to the segment
Size - Target segment should be large enough
