Understanding Consumer Buying Behaviour

through Observation

Submitted in partial fulfilment of the requirements of the course

Marketing I

Instructor: Dr. Dheeraj Sharma

Academic Associate: Ms. Romini Suthar

Submitted on August 13, 2012 by

Group B-13

Section B
 Objective
To understand consumer behaviour by observing shoppers in a multi-brand retail outlet and a
single brand outlet selling readymade shirts.

Location
Multi-brand outlets: Lifestyle and Shoppers’ Stop
Single brand outlets: US Polo Association, Woodland, Levis

Observations

a) Buying readymade Shirts from single brand outlets

Customer Problem Information Evaluation of Purchase
Recognition Search Alternatives Decision
Husband, wife Pre-planned  Explored different  Did not go to any  Husband took
and daughter; requirement shirt options based other store. the decision.
Aged mid 30s; of shirt and on pre-decided  Shirts of different  Reinforced by
Upper middle trouser pair trouser colour and colours, sizes and sales person.
class Gujarati for office size. textures were tried in  Time for
family ; wear  One dedicated accordance to trousers’ purchase: 20-
Planned salesperson helped colour. 25 minutes
shopping; Had in product search.  Discounts of 40%  Cash payment
come in car  No consultation were available on some
with wife and of the shirts, but
daughter customer did not pay
attention to it.
Lady, daughter Desire to gift  Explored non-  Possibly the  Quick decision.
and son; Aged a semi- sale items lady visited different  Time for
late 40s; Rich formal shirt  Primarily single-branded stores purchase: 7
family; interested in and then came back to minutes
Planned higher end the store.  Credit Card
shopping; products  She did not payment
Came in car available at store even look at the price
 Reaffirmation of tag (price insensitive
choice by kids purchase)
A married To purchase Enquired with the The couple evaluated  Wife was the
couple in their casual shirt salesman about product offerings primary decision
late 20s; for everyday texture and quality across different maker
Middle class usage for of garments. discount ranges  The husband
family; husband. was reaffirming
Impulsive the choice with
shopping; the salesperson
Came on bike  Time for
purchase: 30
Minutes
 Cash payment

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 Influence of customer behaviour in buying process
As per our observation following inferences can be drawn about the role of consumer
behaviour in purchasing process.

1. Problem Recognition
Purchasing process is triggered by need for a shirt, belonging to a specific brand and
usage (office wear / casual wear) identified by the customer.

2. Information Search
 Brand image
 Advertisements about new collections
 Family members
 Sales person
 Price / Discounts on offer (Advertisements, Friends)

3. Evaluation of parameters
(In decreasing order of preference)
a) Brand b) Quality c) Size / Colour / Pattern
d) Comfort / Fit e) Price f) Scope for bargaining

4. Purchase decision
a. The salesperson plays a major role in the purchase decision.
b. The family members accompanying the purchaser may or may not affect his purchase
decision.
c. The customers valued brand and quality of the product more than the price.

b) Buying readymade Shirts from multi brand outlets

Customer Problem Information Evaluation of Purchase Decision
Recognition Search Alternatives
Family Wanted to  Enquiry about  The couple  Initial product choice
consisting of purchase product sizes, looked through was made by the
husband, wife semi-formal colours, various brands husband.
and kid; Aged clothes for material with offering same  The wife had the final
mid 30s; Friday the salesman shirt type and say in the decision
Shopper had dressing or size at  Later, the wife moved
semi-formal for non-  The salesman comparable to the ladies section. The
dressing; formal helped in prices husband evaluated more
Impulsive occasions locating the options which were
shopping; Had right products  Later, focussed rejected by his wife.
come in auto on specific  Time for purchase: 25
brands minutes
specializing in  Credit Card payment
semi-formal
dressing.

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Young man; Wanted to  Discounts on  The consumer  Weighed options of
Aged early 20s; purchase a offer heavily focused on multiple purchases
student; shirt for  Choice across a few brands but based on incremental
Planned interviews. brands wanted to evaluate discounts vs. single
shopping; Came  Salesperson products from other purchase low
in auto brands as well. discount.
 Tried out  Time for purchase: 20
multiple samples minutes
pointed out by the  Cash payment
salesman
Two young men To make the  Two  Customers  Spent very little time
in mid 20s; most out of customers focused on brands in evaluating a single
Middle class the seasonal offered advice to offering low price product.
family; Planned sales each other on products.  Focus was on quantity
shopping; Came colour and  Tried to of purchase due to
on bike pattern. find products with seasonal sale.
 The discount being  Time for purchase: 45
salesperson tried offered based on minutes
to offer his help loyalty cards.  Credit Card payment
but customers
did not pay heed.

Influence of customer behaviour in buying process

As per our observation following inferences can be drawn about the role of consumer
behaviour in purchasing process.

1. Problem Recognition
Purchasing process is triggered by need for a shirt and indifference between products
from multiple brands, availability of products in multiple price bands and discounts
on offer.

2. Information Search
 Reputation of multi brand outlets (Choice of brands)
 Advertisements about seasonal sale
 Price tags
 Family members
 Sales person

3. Evaluation of alternatives
(In decreasing order of preference)

a) Price / Discounts b) Quality c) Size / Colour / Pattern

d) Comfort / Fit e) Brand

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 4. Purchase decision
a. Salesperson plays an important role in the purchase decision making by guiding
customers towards desired locations and helping them in inter-brand comparisons.

b. Discounts influence most of the customers in purchase decision making.

c. In general, customers take more time in decision making than single branded outlets.

Conclusions & Recommendations

It has been observed that while single and multi-brand outlets largely sell the same
products, the sale dynamics are quite different. Consumers purchasing from single brand
outlets are influenced by brand, whereas consumers going to multi brand outlets focus more
on the choice of brands. Consumers in single brand outlets seek the help of sales personnel
who are more attentive while in multi brand outlets, consumers prefer to evaluate the multiple
brands on offer which requires the sales people to be more knowledgeable and better
informed about various products across brands. Consumers shopping at multi brand outlets
are heavily motivated by price and parallel discounts. Shoppers at single brand outlets look
for a larger variety in the same brand.

The group learnt the nuances of consumer buying behaviour while observing
customers buying similar products in largely different settings. It can be useful to a single
brand retailer to offer personalized treatment for returning customers and provide incentives
for brand loyalty. By ensuring that the store has some exclusive new arrivals and having a
bigger collection than the multi brand counterpart, single brand retailers can utilize the first
mover advantage. Store design based on the types of product sold and the strata of society
catered to, can help in attracting intended customers. For example, a store selling denim shirts
can modify the look of the store by utilizing metal and denim in the setup, while a store
selling business formals can use elegant furnishings.

A multi brand outlet has the option of posting allied products like ties, belts and vests
close to the shirt displays. This enables the salesperson to influence the consumer to buy
products which he is likely to use with the shirts he intends to purchase. Multi brand outlets
must focus on training and developing sales person skills since these personnel can help the
customers in providing style decisions and locating the right products across various brands
and in a larger space. Multi brand outlets can encourage shoppers looking to buy gifts to
purchase gift vouchers, thereby providing consumers a choice of product as well as brand.
This would thereby ensure consumer satisfaction and customer retention.