RETAIL BUSINESS MANAGEMENT

Understanding The Retail Consumer

Retail consumer behavior is defined as the process of selecting, purchasing, using, and disposing of products
and services to suit the wants and needs of people or groups, as well as the activities associated with these
decisions.
or in simple sentence it is a study of the actions of the consumers that drive them to buy and use certain
products.

What's the importance of Consumer behavior?

 essential for a company to succeed in its current products and new product launches
 it helps them to relate better expectation of the consumers
 to understand the likes and dislikes of consumers and design base their marketing efforts based on the
findings

5 Factors that influence Consumer Behavior

1. Psychological Factors
- Human psychology is a major influencer of consumer behavior.
- It is one of the most powerful ways to influence a purchasing choice.
 Motivation
 Perception
 Learning
 Attitude and Beliefs

2. Social factor
- Humans are social beings, and the people they live with have a big impact on the choices they
make.
 Family
 Reference gorup
 Roles and Status

3. Cultural Factor
- It includes the fundamental beliefs, needs, wants, preferences, perceptions, and behaviors that a
consumer observes and learns from their close family members and other key people around them.
 Culture
 Subculture
 Social class

4. Personal Factor
- Factors that are personal to the consumers influence their buying behavior. These personal factors
differ from person to person, thereby producing different perceptions and consumer behavior.
 Age
 Income
 Occupation
 Lifestyle
5. Economic Factors
- The consumer buying habits and decisions greatly depend on the economic situation of a country or a
market.
- Consumers are more confident to spend on buying products when they experience a positive economic
environmen
 Personal income
 Family income
 Consumer credit
 Liquid assets
 Savings
