UNI

T-2
CONSUMERBEHAVI ORI
NRETAI
LBUSI
NESS
Meani
ngofConsumerBehav
ior–:
Theconsumerbehaviorisadecisi
on–maki ngprocess.Iti
ncludesthe
behavi
orthatt
heconsumer sdispl
ayinsearching,coll
ecti
ngthe
i
nformati
on,eval
uati
ng,pur
chasing,usi
ng,postpur chaseeval
uationand
di
sposingofproduct
sandser v
ices.
Def
ini
ti
onsofConsumerBehav
ior–:
Accor
dingt
oKotl
er–“Consumerbehav
iori
sthest
udyofhowpeopl
ebuy
,
whatt
heybuy,
whentheybuyandwhytheybuy.
”
Accordi
ngtoSol omon–Consumerbehav i
orist hestudy“
oftheprocesses
i
nvolv
edwheni ndi
vi
dualsorgroupsselect
,purchase,use,ordi
sposeof
pr
oducts,ser
vices,i
deas,orexperi
encestosatisfyneedsanddesir
es.”
Accordi
ngt oSchiffman–“ Thebehavi
orthatconsumersdi
splayin
searchi
ngfor,purchasi
ng,usi
ng,eval
uat
ing,anddisposi
ngofproduct
sand
serv
icesthattheyexpectwill
sat
isf
ytheirneeds.
”
Accordi
ngtoEngel –Consumerbehaviorinvol
ves“Thoseact sof
i
ndivi
dualsdi
rectl
yinvol
vedinobt
aini
ng, usi
ng,anddisposi
ngofeconomic
goodsandservices,i
ncl
udingt
hedecisionprocessesthatprecedeand
deter
minetheseacts.”
Buy
ingDeci
sionPr
ocess–
Meani ng–Thedecisi
onmaki ngprocessundert
akenbyconsumersi
n
regardtoapot
entialmarkett
ransacti
onbefore,
duri
ngandaftert
he
purchaseofaproductorserv
iceiscall
edbuyerdeci
sionpr
ocesses.
St
agesofBuy
ingDeci
sionPr
ocess–
01:Problem Recogni
ti
on:Iti
salsocalledneedrecognit
ion.I
tisthefi
rstand
mosti mport
antstepinthebuy i
ngprocess.I
fthereisnoneed, t
herei
sno
purchase.I
thappenswhent hereisalagbetweent heconsumer ’
sactual
si
tuationandtheidealanddesiredone.However,notal
l t
heneedsendup
buyingbehavior
.Therecognit
ionofaneedbyaconsumercanbecausedi n
di
fferentways.
I
tincl
udes:
I
nter
nal
Sti
mul
i–I
tisphy
siol
ogi
cal
needf
eltbyt
hei
ndi
vi
dual
.For
exampl
e:Hungerort
hir
st.I
topposest
heext
ernal
sti
mul
isuchasexposur
e
toanadver
ti
sement.
Functional
Need:Theneedisrel
atedt
oafeatur
eorspecif
icfunct
ionsof
theproductorhappenstobet
heanswertoafuncti
onalpr
oblem.For
example:computerwit
hamor epowerf
ulv
ideocardtobeabletoplaythe
l
atestvideogames.
SocialNeed:Theneedcomesf rom adesi
refori
ntegrat
ionand
belongi
ngnessinthesoci
alenv
ironmentorforsoci
alrecogni
ti
on.For
example:buyi
nganewf ashi
onablebagtolookgoodatschool.
Needf orChange:Theneedhasitsori
gini
ndesi
refr
om t
heconsumerto
change.Thismayresulti
nthepurchaseofnewornewfur
nit
uret
ochange
thedecorat
ionofyourapart
ment.Step–
02:Informat i
onSearch–Thenextst episinformationsear ch.Oncet he
needi sidenti
fiedtheconsumer sseekinformationaboutpossi blesol ut
ions
tothepr oblem.Theywi llsearchmoreorlessinformat iondependingona
compl exit
yoft hechoicest obemadebutal solevel ofinvolv
ement .For
exampl e:buyingpencilrequir
eslit
tl
einf
ormat i
on.Buy ingacarr equires
mor einformat i
onsearch.Thent heconsumer swill
seekt omakehi s
opiniontogui dethei
rchoi ceanddecisi
on–maki ngpr ocesswi t
h:
Internal
Infor
mation:Itistheinfor
mati
onal
readypresenti
nt he
consumer ’
smemor y .I
tcomesf r
om pr
evi
ousexper
iencestheyhadwitha
productorbrand.I
nt er
nal i
nfor
mat i
oni
ssuff
ici
entforthepurchasi
ngof
everydayproduct
st hattheconsumerknows.
External
Inf
ormation:I
tistheinfor
mat i
ononaproductorbrandrecei
ved
fr
om andobt ai
nedbyfri
endsorf ami
ly,byrev
iewsf
rom otherconsumers,
fr
om thepress,of
fi
cial
businesssourcessuchasanadverti
singora
sel
ler’
sspeech.St
ep–
03:Ev al
uati
onofAlter
nati
v e–Thethi
rdst
ageofthedecisionmaking
process,ist
heevaluat
ionofexpect
edoutcome.Theconsumer swill
evaluateonthebasisofthemostsuit
abl
etothei
rneeds.Theychooset he
onet heythi
nkisbestforthem.I
nordert
odoso,theywil
l eval
uat
et hei
r
attr
ibutesontwoaspects.
Obj
ect
iveChar
act
eri
sti
cs:
Iti
ncl
udesf
eat
uresandf
unct
ional
i
tyoft
he
2
B.
K.COLLEGE,
BELGAUM
pr
oduct
.
Subjecti
v eCharact
eri
stics:I
tincludespercept
ionandperceivedvalueof
thebrandbyt heconsumerori tsreputati
on.Thi
sst ageoft
hedeci sion
makingpr ocessiscri
ti
cal,becausemanyconsumer sarenotablet omake
arati
onal deci
sionbywei ghi
ngal t
ernati
ves.Consumersevaluate
alt
ernati
vesbasedonpr ice,design,qual
ity
,feat
ures,per
for
mance,
popular
ityetc.
04:PurchaseDecisi
on–Thenextst epi nthedecisi
onmaki ngpr ocessisto
purchasetheproduct
.Theconsumerhasdeci dedwhi chproducttobuy ,
or
nottobuyany t
hingatall
.Ifhedecidest omakeapur chase,hemakesal l
necessaryarr
angementst oacquir
et heproduct.Hechoosest hebr and
shopandt i
meofpur chase.Forexampl e:Aconsumercommi tt
edt othe
i
deaofbuy ingawashingmachi neofawel l-
knownbrandcoul dchangehi s
decisi
onifhehasanunpl easantexperiencewithsell
er si
nthest ore.St
ep–
05: PostPurchaseBehav i
or–Thenextst epinthepr ocessisanev al
uat
ion
ofthepr oductaft
erthepur chase.Nowt hattheconsumerhasmadet he
purchase.Heexpect scertainoutcomesf rom hisdecisi
on.Thelevelof
satisf
actionthattheconsumerwi l
lexper i
encewi l
ldependlargelyonhow
manyofhi sexpectat
ionswer emet .Basedont helevelofsati
sfacti
onor
dissati
sfacti
on,hewilldecidewhet herornott obuyt hesamepr oductnext
ti
me.Gr eateramountofsat i
sfact
ionbr i
ngsr epeatedpurchase,and
dissati
sfacti
onmayl eadtobr andswi tching.
I
mpl
i
cat
ionofConsumerBuy
ingPr
ocessonRet
ail
i
ng:
Ther etai
lermustf ocusont hecust omer’
sbuy ingexper i
ence.Tomanagea
customer ’sexper ience,ret
ail
ersshoul dunderst andwhat“ customer
experience”act uallymeans.Cust omerExper i
enceManagementi sa
str
ategyt hatfocusest heoperat i
onsandpr ocessesofabusi nessar ound
heneedsoft hei ndi vi
dualcustomer .Itr
epresent sastrategythatr esul
tsi
n
awin–wi nvalueexchangebet weent heretai
lerandi t
scust omer s.The
goalofcust omerexper i
encemanagementi stomov ecust omersf rom
sati
sfiedtoloy al andt henfr
om l oyaltoadvocat e.Thi
spaperf ocuseson
theroleofmacr of act
orsinther etail
envir
onmentandhowt heycanshape
customerexper ienceandbehav iors.
Themaj
orf
act
orsi
nfl
uenci
ngconsumerbuy
ingdeci
si
onpr
ocessar
eas

3
B.
K.COLLEGE,
BELGAUM
f
oll
ows:
BrandExper ience–Thecust omercomest oar et
ail
ingenv ir
onmentwi th
perceptionsaboutt wot ypesofbr ands:ther etail
brandandt he
manuf acturerorservicebrandthati ssoldi nther et
ailstores.Here,the
discussionisaboutt heretail
brandcust omerexper ience,althought he
i
deasputf orthbelowcoul dbeinvest i
gatedi nrelati
ont othemanuf actur
er
orservicebr andaswel l
.Thecust omerbr andper ceptionsoft heretail
er,
whenpr i
medpr iortoshoppingexper ience, mightsignifi
cant l
yinfl
uencet he
customer ’
sexper i
ence.Itisalsoimpor tantt oconsidert hereinfor
cing
effect
soft hecust omer ’
sexperienceandt hebr andov erti
me.
PriceExper ience–Al otr i
desonhowar etail
erset sitsprices.Thethree
otherP‟ screat ev aluefort hesellerthef ourthPofpr icecapturesvalue.In
additi
on, t
hisi stheonl yPt hatear nsrevenuef orther et
ailer
.Whenr etai
lers
priceapr oductorser v
icet oohigh, consumer sv i
ewi tasapoorv al
ueand
willnotbuy .Apr icesett oolowmaysi gnal l
owqual i
ty,poorper f
ormanceor
othernegat iveattr i
butesaboutt hepr oductorser vi
ce.Theconsumer ’s
storepriceimagel i
kelyr esul
tsfrom agr eaterthenumberofl owpriced
productsatast or e,thel owerpricei mageamongknowl edgeable
consumer s.Resear chsuggest sthatr etail
erst hereforeshoul dcarr
ysome
high–pr i
cedmer chandi setoextractr entsfrom l oyalcustomer sandsome
l
ow–pr i
cedmer chandi setoattractnewones, butmor ewor kisneedi n
thisarea.
Promot i
onExper ience–Consumerpr omot ionsalsotakeseveralf
orms,
i
ncludingpricepromot i
ons,l
ossleaders,andin–st oredi
splays.Meta
analy
sesshowt hattheimmedi at
eincreaseinsalesofapr omoteditem i
s
substanti
al.Theaccountingrecordspertai
ningtotradepromotionsremain
i
nadequat eforderivi
ngadefinit
eanswer .
SupplyChainManagementExper i
ence–Mostoft her esearcher
s‟cent er
s
onwhathappenatt hef r
ont–endoft heretail
store, supplychain
managementoccur satthebackend.Fordecades, retailsuppl
ychainand
l
ogisti
csissuesseemedsomehowl essimpor t
antt hanot heracti
vit
iessuch
aspromot i
on,pri
cingorcust omerser vi
ce.Butthiser roneousperception
nolongexists.Supplychainissues,from boththemor emanagerial
part
neringsideandt echnicaloperat
ionsside,havepr ovenimportant
sourcesofcompet it
iveadv antageforanyretail
ers.

4
B.
K.COLLEGE,
BELGAUM
Locati
onExper ience–Ret ai
li
ngacademi csandpr act
iti
oner sseem al
way s
toemphasi ze“location,l
ocation,l
ocation”ast hekeyt osuccess.An
i
mpor tantresearchadv anceconsi dersther oleoft ravelt
imeon
consumer s‟choiceofr etail
format sandt her elatedretai
lingi mpli
cat
ions
becauseconsumer sv al
uet heirt
ime.Thel ocationdeci si
onl ikel
yhasmajor
ramif
icati
onf orprice,promot i
onandmer chandi si
ngdeci sions.
Adv erti
singExper i
ence–Dur ingt hegr owt hpr ocess, marketersr ecognized
thatt heinternetwasamedi um f orr eachingmi ll
ionsofpot ential
cust omer s.Sincet hen,mar ketershav eadapt edv al
uebasedadv ertisi
ng
strategiest othei nter
net.Traditional consumer sbehav i
orliteraturewoul d
suggest st hatintensepr oducti nformat i
oni sv italforhi
ghinv olvement
productwebsi tes,whil
eent ertainmentcont entmaybef itforlow
i
nv olvementpr oductsites.Ther ear ev ari
oust ypesofonl i
neadv erti
sing,
i
ncl uding“ emails,newsletters,scr eensav ers,esponsor i
ng,asy nchr onous
andsy nchronouschatgr oups, infomer cials,onlinegamesandwebsi tes.
”
Packagi ngandLabel ingExper i
ence–Packagi ngpl aysamaj orr
olewhen
product sarepur chased.Asaf i
fth„P‟ofmar keti
ng, packagingreferstot
he
activit
iesofdesi gningandpr oducingt hecont ai
nerorwr apperf oraproduct
.
Itmaybepr imar y,secondaryandshi ppi ngt operformt heobj ecti
vesas
containment ,protection,
ident i
fi
cation, communi cat i
on,promot i
onand
productdi f
ferentiati
on.Goodpackagi ngal sopr ovidesinformat i
onbased
ont ruth,i
tmustbeeconomi cal,att
ractiv e,convenient,protecti
veand
transparent.Packagi ngisintegral t
oboost i
ngper ceptionsofsaf etyand
wi l
ltheref
orebeani mportantpar tofmor econcertedef fortstoregain
consumert r
ustgoi ngf or
war d.
ServiceMi xExper i
ence–Cust omerserviceistheabi l
i
t yofanor ganizat
ion
toconst antlyandconsistent l
ygivet hecustomerwhatt heywantandneed.
Customersat i
sfacti
onisakeyconsequenceofser vicequal i
tyandcan
determi nethelong–t er m successofaser vi
ceor ganizat ion.When
tr
ansl atedtoser v
ices,adi sti
ncti
onbet weenser vicequal i
tyandcust omer
sati
sf acti
onneedst obemade.Fur t
hermor e,onemustdi fferent
iate
betweenser vi
ceexpect ationsandser vi
ceper ceptions.Whi l
eservice
expect ati
onsar eacombi nati
onofcust omer ’
spr edictionsaboutwhati s
l
ikelyt ohappendur ingaser v
icetransacti
onaswel last hewant sand
desiresoft hatcustomer ,serviceperceptionscanbedef inedasa

5
B.
K.COLLEGE,
BELGAUM
customer ’
sglobal
judgment soratt
it
udes, whi
chrel
atet
ot hesuper
ior
it
yof
aservice.I
ngeneral,customersati
sfacti
onisaff
ect
edbycust omer
expectati
onorantici
pationpri
ortoreceivi
ngaservi
ceandcanbe
approximatedbythef ol
lowingequati
on.CustomerSati
sfact
ion=
Percepti
onofPer f
ormance–Expect at
ions
Atmospher eExper i
ence–Consumerspendi ngbehav iorcanbe
signi
fi
cantlyinfl
uencedbyt hest oreatmospher eandt hecustomermood.
Customer srequireast orel
ay outt hatmaxi mizest henumberofpr oducts
seenwi t
hinthecont extofacust omer ’
s‟needf orthepr oduct.Customers
whoexper ienceaf orm ofpersonal control
, whetheri norient
ingthemselves
tothestoresect i
ont heyneedt ogot oori nf i
ndingt heproductstheywant ,
generall
yfeel goodaboutt hest ore.Goodf eeli
ngsl eadt omor epurchases,
especial
lyifproductsar epresent edwi t
hinadi splayt hatshowst he
potenti
alusefulnessoft heproductf orthem.
I
nfl
uenceofGr
oupandI
ndi
vi
dual
Fact
orsonCust
omerar
e-:
I
.Cul
tur
alFact
ors
I
I.Psy
chol
ogi
cal
Fact
ors
I
II
.Soci
alFact
ors
I
V.Si
tuat
ional
Fact
ors
V.Per
sonal
Fact
ors
CulturalFactor s–Culturalf
actorscompriseofsetofv aluesandi deol
ogies
ofapar ticul
arcommuni tyorgroupofindivi
duals.Itist
hecul tur
eofan
i
ndiv i
dual whichdecidest hewayhe/shebehav es.Culturefactorshavea
si
gni f
icanteffectonani ndivi
dual’
sbuyingdecision.Everyindivi
dualhas
di
fferentsetsofhabi ts,beli
efsandpri
ncipleswhi chhe/shedev elopfr
om
hi
sf ami l
ystat usandbackgr ound.Whattheyseef r
om theirchil
dhood
becomest heircult
ure.
Psy chologi
calFact
ors–Alt
houghmar keterscaninf
luencepurchase
decisions,ahostofpsy
chol
ogical
factorsaffectt
hewaypeopl er ecei
ve
mar keter’
smessage.Amongthem areattit
udes,per
ception,
learningand
l
ifestyle.
1.At
ti
tude:
Anat
ti
tudesi
saper
son’
sendur
ingev
aluat
ionofhi
sorher

6
B.
K.COLLEGE,
BELGAUM
feel
ingsaboutandbehav i
oralt
endenci
estowardanobjectoridea.
Atti
tudesarelear
nedandl ongl
asti
ng,andtheymightdevelopoveralong
peri
odoftime, t
houghtheycanalsoabrupt
lychange.Forinst
ance,welike
thi
sclass,butwedon’tl
iketheinst
ruct
or.Welikewherewel i
ve,butwe
don’tl
iketheweather
.
2.Perception: Per
ceptionisthepr
ocessbywhichweselect,
organi
ze,and
i
nterpreti
nf ormationtoform ameaningf
ulpi
ctur
eofthewor l
d.Per
cept i
on
i
nmar ketingi nfl
uencesouracquisi
ti
onandconsumptionofgoodsand
serv
icesthr oughourt endencytoassi
gnmeaningtosuchthi
ngsascol or,
symbol s,
tasteandpackagi ng.
3.Lear
ning:Lear
ningref
erstoachangeinaperson’
sthoughtprocessor
behavi
orthatari
sesfr
om exper
ienceandtakespl
acethroughoutthe
consumerdecisi
onprocess.
4.Lif
estyl
e:Lif
estyl
ereferstothewayconsumer sspendtheirti
meand
moneyt oli
ve.Formanyconsumer s,
thequestionofwhethertheproductor
servi
cefit
swi t
htheiractual
li
festy
le,whichmaybef ai
rl
ysedentaryorthei
r
percei
vedlif
estyl
e,whichmightbeout doorsy
,isanimportantone.
Social
Factors–Theconsumerdecisi
onprocessisi
nfluencedfr
om wit
hin
bypsychol
ogical
factor
s,butal
sobytheexter
nal,
socialenvi
ronment
,
whichconsist
softhecustomer
’sf
amily,
refer
encegroupsandcultur
e.
1.Fami l
y:Manypur chasedecisionsar
emadeaboutpr oduct
sorservices
thattheent iref
amilywillconsumeoruse.Whenf amil
i
esmakepur chase
decisions,theyoft
enconsi dertheneedsofall
thefamilymembers.I
n
choosi ngar est
aurant,forexample,al
lthef
amilymembersmaypar t
icipat
e
i
nt hedeci sionmaking.
2.ReferenceGr oups:Areferencegr oupisoneormor epersonswhom an
i
ndivi
dual usesasabasi sf orcompar isonregardi
ngbeli
efs,feeli
ngs, and
behaviors.Aconsumermi ghthav evariousrefer
encegroups, i
ncluding
famil
y,friends,co-workersorf amouspeopl et heconsumerwoul dliket o
emulate.Ref erencegroupspr ovideinformationtoconsumer ’
sdirectly
thr
oughconv er
sationorindirectlythroughobser v
ati
on.
Theseref
erencegroupsaff
ectbuy
ingdecisi
onsbya.offer
inginf
ormat
ion.
b.Prov
idi
ngrewardsforspeci
fi
cpurchasi
ngbehavi
ors.c.Enhanci
nga
consumer’
sself-
image.
7
B.
K.COLLEGE,
BELGAUM
Sit
uationalFact
ors–Psy chologi
cal andsoci alfactorstypicall
yinf
luence
theconsumerdeci sionprocesst hesamewayeacht i
me.Forexampl e,y
our
motivati
ont oquenchy ourthir
stusual l
ydrivesy out odri
nkaCokeora
Pepsiandy ourreferencegroupatt hewor kplacecoer cey out owear
appropriat
eatti
re.Butsomet imes, si
tuati
onal f
act orsorf actor
sspecifi
cto
thesit
uat i
on,over
ride,oratleastinfl
uence,psy chological andsociali
ssues.
Thesesi
tuat
ional
fact
orsar
e:
1.PurchaseSit
uation:
Customersmaybepredisposedtopurchasecert
ain
productsorser
vicesbecauseofsomeunderl
yi
ngpsy chol
ogicalt
rai
tor
socialf
actor
,butthesefact
orsmaychangei
ncer tai
npurchasesit
uati
ons.
2.Shoppi
ngSi t
uati
on:Consumersmightbereadytopurchaseaproductor
serv
icebutbecompl et
elyder
ail
edoncetheyarr
iveinthestor
e.Market
ers
useseveralt
echni
quest oi
nfl
uenceconsumersatthischoi
cestageofthe
deci
sionprocess.
3.StoreAtmosphere:Somer et
ailersandser vi
ceprovi
dershavedev eloped
uniqueimagesthatarebasedatl eastinpartontheiri
nternal
environment,
al
soknownast hei
ratmospherics.Researchhasshownt hat,
ifusedin
concertwit
hotheraspectsofar etail
er’
sstrategy
,music,scent,
li
ght i
ngand
evencolorcanpositi
vel
yinf
luencet hedecisionprocess.
4.SalesPeople:Well
–t r
ainedsal
esper
sonnel caninf
luencethesal
eatt
he
pointofpur
chasebyeducat i
onconsumersaboutproductattr
ibut
es,
pointi
ngouttheadvantagesofoneit
em overanotherandencouragi
ng
mul t
ipl
epurchases.
5.Crowding:Customerscanf eelcrowdedbecauset herearetoomany
people,t
oomuchmer chandise,orl
inesthataretoolong.Iftherearet
oo
manypeopl ebecomedi st
ractedandmayev enleave.Othershav edi
ff
icul
ty
purchasi
ngifthemerchandisei spackedtooclosel
yt ogether.
6.Pr
omotion:
Ret ai
ler
sempl oyv ar
iouspromot i
onalv
ehi
clestoi
nfl
uence
cust
omersoncet heyhavear r
ivedinthestore.Anunadv
erti
sedpr
omot i
on
canalt
eraperson’spreconcei
vedbuy ingplan.
7.Packagi
ng:Itisdi
ffi
cultt
omakeapr oductstandouti
nthecrowdwheni t
competesforshelfspacewithsev
eralotherbr
ands.Thi
sprobl
em is
part
icul
arl
ydif
ficul
tforconsumerpackagedgoods,suchasgrocer
iesand

8
B.
K.COLLEGE,
BELGAUM
healthandbeautypr
oduct
s.Mar ket
erst
her
efor
espendmi l
li
onsofdol
lar
s
designingandupdat
ingt
heirpackagest
obemor eappeal
i
ngandey e
catching.
Per
sonalFact
ors–Decisionsandbuyi
ngbehavi
orareobv
iousl
yal
so
i
nfl
uencedbythechar
acteri
sti
csofeachconsumer
.
1.Age: Aconsumerdoesnotbuyt hesamepr oductsorservicesat20or70
years.Hisli
festyl
e, values,envi
ronment, act
ivi
ti
es,hobbiesandconsumer
habitsevolvethroughouthi slif
e.Forexampl e:duringhisli
fe,aconsumer
couldchangehi sdi etfrom unhealt
hypr oducts(f
astf ood,
readymealsetc.
)
toaheal thi
erdiet,duringmi d-
li
fewithfami l
ybeforeneedingt ofol
l
owa
l
itt
lelateralowchol ester
ol di
ettoavoi
dheal thproblems.
2.Purchasi
ngPower :Thepurchasingpowerofani ndividualwi
ll
hav e,
of
course,adeci
siveinfl
uenceonhisbehav i
orandpur chasingdeci
sions
basedonhi si
ncomeandhi scapi
tal.Thi
sobv i
ousl
yaf fectswhathecan
aff
ord,hisper
spectiveonmoneyandt helev
elofimpor tanceofpri
ceinhi
s
purchasi
ngdecisions.

3.Li
fest
yle:Theli
festyleofanindivi
duali
ncludesal
lofi
tsacti
vi
ti
es,
i
nter
ests,val
uesandopi ni
ons.Thelif
esty
leofaconsumerwilli
nfl
uenceon
hi
sbehav i
orandpur chasingdecisi
ons.Forexample,
aconsumerwhodoes
j
oggingregular
lywil
l buyshoes,clot
hesandspecifi
cproduct
setc.

4.Personali
tyandSel f–Concept :Personalityi
sthesetoft rai
tsand
specifi
ccharact er
isti
csofeachi ndivi
dual.Itistheproductofthe
i
nteracti
onofpsy chological
andphy siol
ogi calchar
acteri
sti
csoft he
i
ndividualandresul t
si nconstantbehav iors.Itmateri
ali
zesintosomet rai
ts
suchasconf idence, sociabi
l
ity,autonomy ,char i
sma,ambi t
ion,shyness,
curi
osity,
adapt abil
it
yet c.
Ret
ail
planni
ngpr
ocess:

9
B.
K.COLLEGE,
BELGAUM
 1.I
dent
if
ytheObj
ect
ives
Atthemi crol
evel,
goalsar esetforeachdepartment,andatthemacr o
l
evel,goalsar
esetf ortheenti
rebusiness.Forexample,whent he
governmentinvi
tesbids, t
hecompanyai mst ogetthecontract
.Incontr
ast
,
thegoalsofthecompany ’
sindiv
idualdepart
mentsaret oimprovethei
r
perf
ormancei nsales,product
ion,andmor e,r
especti
vely.
Depar t
mentalgoal saremor especificandti
me-boundthanoverall
businessgoals.Ther efore,bi
-mont hlyormonthl
ytarget
saresetforeach
depar t
mentofanyor ganizati
on.Set ti
nggoalsprovi
desemployersand
empl oyeeswit
hamor efocusedpat hthatneedstobetrav
ersedtoachiev
e
objecti
vesatalllevels.Ensuret hatthesetSMARTgoal sareSpecif
ic,
Measur abl
e,Attainable,Relevant,andTime-based.
2.MakeaMar
ketAnal
ysi
sandSi
tuat
ional
Anal
ysi
s
Analy
sisoft hemar ketandsituat
ionhelpst heretai
leranswerquest
ionson
howandwhent osell
.Forthispurpose,adet ai
ledanalysi
softheint
ernal
andexternalfactor
saf fect
ingthebusinesswi l
lbest udi
ed.I
nter
nalfact
ors
arecontr
ollableandar ebasedont hein-housewor kingcondi
ti
ons.I
n
contr
ast,externalf
actorsaremor eoftenuncont r
ollabl
e.
Seetheimagebel
owtounderst
andthequalit
ati
veandquanti
tat
iveanal
ysi
s
ofthefact
orst
hati
nfl
uenceanyor
ganizat
ion’
sstrat
egi
cretai
lpl
anning
process

10
B.
K.COLLEGE,
BELGAUM
 3.Resear
chonConsumerBuy
ingBehav
ior
Goodresearchwor krel
atedt othet ar
getaudi
enceprovidesmuch- needed
fl
exi
bil
i
tyinplanni
ng.Ther efore,theretai
l
erneedstoresearchallt
heway s
tohel
pattainthebusinessgoal s.Thereisal
way smorethanonewayof
achi
evi
ngt hegoals;onl
yr esearchcanhel paret
ail
eri
dent i
fytheseway s.
Apartf
rom r
esear chi
ngmul t
iplewaysofprovi
dingretai
lcustomerser
vice,
onemustfil
terhowi tcanbewor kedonsmoot hly
.Oncet hemulti
pleways
havebeenshortl
isted,ev
aluatethem basedontheirstr
engths,
weaknesses,
opport
uni
ti
es,andt hreat
s.Thismeansconduct i
ngaSWOTanal ysi
son
eachopti
on.
Pl
ant
heRet
ail
Str
ategi
es
Oncey ouhav esety ourobj
ectiv
esandi denti
fiedy ourmarketpositionand
retai
lmix,it
’sti
met opl any
ourr etai
lstrategy.Ideall
y,y
ourretail
strategi
c
planistheonet hatismostpr ofi
table.Beforey ouchoosey ourstrategy,
remembert omai ntainabalancedr etai
lmi xandadher etoy ourretail
posit
ioning.
Everystrat
egyorpl anhasitsownsetofpr osandcons.So, choosetheplan
thatismostcost -
effecti
veandimpactful
.Intoday
’sti
me, Omni channel
retai
lstr
ategiesareoftenconsi
deredthemostef f
ecti
ve.Apar tf
rom thi
s,
everyret
ailershouldadheretotheret
ailt
rendsinthei
rrespectiv
eindustr
y
tostaycompet it
ive.
5.Emphasi
zeShor
t-
ter
m St
rat
egi
cPl
ans
Nowthattheoveral
lretai
lstr
ategypl
anhast akenshape,i
t’
sti
met o
subdi
vi
deitint
oshorterstrat
egicpl
ans.Short-
ter
m str
ategi
cplansprov
ide
morepreci
sionforexecut
ingtheplanwithi
nacondensedt i
mef r
ame.
Ret
ail
ersusepromot i
oncampaigns,short-
ter
m TVcommer cial
s,
pamphlet
s,seasonalorf
est
ival-
speci
ficads,coldcal
l
ingwithabusi
ness
VoI
Psy st
em, et
c.,aspar
tofthei
rshort-t
ermr et
ail
str
ategi
es.
6.I
mpl
ement
ati
onoft
heSt
rat
egi
es
I
t’
sti
met oimplemental
lthegraywork.It’
st i
meforthepract
ical
i
mplementat
ionofthepl
annedst r
ategies.Atthi
sstep,
theretai
lercan
j
udgetheeff
ectiv
enessofhisstr
ategicdecisi
ons.Thestepal
sohel pshi
m

11
B.
K.COLLEGE,
BELGAUM
toi
denti
fyt
helev
elofi
ncreasei
npr
ofi
tsorgoodwi
l
loft
her
etai
lbusi
ness
onstr
ategi
cimpl
ementat
ion.
Howev er,t
heimplementati
onofar et
ail
strategyisnotastr
aight
forward
t
ask.Itfacesitsownsetofchall
enges.Certainchal
lengesaremetby
makingaf ewadjustmentsin-
house,whil
eot hermoretaski
ngfactorsexi
st
i
ntheext ernal
envir
onment.
7.Per
for
manceAnal
ysi
s
Multipleretai
lmet r
icscanhelptheretail
eranal
yzetheef fecti
venessofhis
over
al lretai
lprocess.Theser et
ailkeyperfor
mancei ndicatorsprovi
det he
di
rect i
onf ori
mpr ovementintheplanningandexecutionst age.The
st
atisticalanal
y sis,asderiv
edfrom performanceanalysistools,pr
ovidesa
cl
earpi ctureoft heincreaseinr
etailpr
ofitmargi
ns.
Theper f
ormanceanal y
si sstepinvolv
esinspecti
on,detecti
on, andanal
ysi
s
oftheprocess.Timelyinspectionofthestrategyatbr
iefintervalsf
urt
her
i
mpr ovestheplan’
ssuccessr ate.Theret
ail
ersshouldbev i
gi l
antand
proacti
veinadheri
ngt ot heshor t
comingsidenti
fi
eddur i
ngt he
perfor
manceanal ysi
sst ep
Cust
omerShoppi
ngBehav
ior-:
Stor
eattr
ibut
esareimportanttoconsumerswhentheymaket hedeci
sion
wheretoshop.Stor
eatt
ributesarepresent
edbyr
etail
ersaccordi
ngtothei
r
speci
fi
cfuncti
onalst
rat
egies.
Storeat t
ribut
esmustbeof feredthataredesi
redbyt hetar get edconsumer .
Thechal lengetor etail
ersistodeterminewhichstor eatt
ribut esar e
rel
at i
velymor eimpor tanttothetargetedconsumer .Provi
di ngappr opriat
e
storeat t
ribut
esi snotenought osatisf
yconsumer sandguar anteest ore
l
oy alt
y.Mai nt
ainingt hequalit
yoft heseatt
ri
butesist hehar destt askand
cri
ticaltosurvivalinthecompet i
ti
venatureoffashionretailing.Thepr esent
studyisi dent
ifyi
ngt hest or
eat t
ri
buteswhichinfl
uencet hecust omer sf or
shoppi ngbehav ior
.
Ther
etai
lsegment
sselectedforthi
sst
udywer
efoodandgr
ocer
y,appar
els,
j
ewel
ryandconsumerdurablesandhomeappl
i
ances.
Ty
pesofShopper
s-:

12
B.
K.COLLEGE,
BELGAUM
01.TheMal lLinger–Theseshopper st
akethei
rti
megoi ngthroughastor
e
beforepurchasinggoods.Someoft hestudi
esconductedi
nAmer i
cahave
shownt hatshopperswhospend30t o60minutesi
namal lspendan
averageof$72. 70.I
ftheyli
ngerthr
eeormorehours,thefi
gurejumpsto
$200.40.Theref l
oorplansaredesi
gnedtokeepcustomersintheshopfor
hours,sothathewi l
lbuymor e.
02.Guerr
il
laShopper–Iti
stheopposit
eofthemal ll
ingerer
.These
shopper
s‟waitsunti
lthel
astminut
e,especi
all
yaroundt hehol
idayseason
andthenrunsarounddesper
atel
y,t
ryi
ngtogetall
t heshoppingdoneinone
shot.
03.TheTouchy–FeelyShopper–Hei satypeofshopperswhowouldl i
ke
t
otouch,pi
ckandfeelt
hepr oductbefor
ehebuysit.Researchshowsthatif
acust
omertouchesorpicksupmer chandi
seheismor eli
kelytobuyi
t.
04.TheSal esJunkie–Theseshopper sar esubject
edtoaspi
ll
ov ereffect
.
Iftheyseeonebar gai
n,theythinkever
ythi
ngint hestor
eisabargain,
maki ngthem appropr
iat
et ospendmor emoney .05.TheSoci
alShopper–
Thist y
peofshopperenjoy sshoppingwithfri
endsandalmostnev ershops
alone,theytendtomakeal otofi
mpulsivepurchases.
Fact
orsI
nfl
uenceofCust
omerShoppi
ngBehav
ior–
01.RetailerProductMi xDesign-Manyr etailer
sar elooki ngforwaysto
“f
ine-t
une”t heirproductmixwhi l
emai nt
ainingv ari
etyanddi f
ferent
iat
ion.
Understandingwhi chtypesofpr oduct
shav eahi gherlikeli
hoodofbeing
boughtoni mpulsecanaidr etai
l
ersinmaki ngst rategicdecisionsabout
whichpr oductst oaddtoorr emov efr
om stor eshel vesinordert oi
ncrease
sales.
02.Retail
erPromotionDesign–Ret ai
lersmustdecidewhetherandwhat
typeofpromot i
onstorun.Areconsumer smoreli
kelytospontaneousl
yadd
aproducttotheircart
sifthepri
cehasbeencutori ftheproductison
specialdi
spl
ay ?Ourstudyprovi
desinformat
iononther esponsi
venessof
consumer st
ospeci f
ictypesofret
ailpromot
ionswithinanimpulsebuyi
ng
context
.
03.Overal
lRet
ail
Per
for
mance–Consumer smakein-stor
epur chase
deci
sionsinacompl
exenv
ironmentwhereamult
ipl
i
cityofinterr
elated
el
ement smayimpel
ini
mpulse.Ourf
indi
ngsi
nfor
mr etail
ersast othe
13
B.
K.COLLEGE,
BELGAUM
rel
ati
vecont
ribut
ionofpr
oductr
elat
edf act
orsversusofthest
orer
elat
ed
fact
orstoanimpulsepur
chasedeci
sion,pr
ovidi
ngt hem wi
thabet
ter
underst
andi
ng.
04.Manufactur
erProductDevelopment–Ret ai
lspaceislimitedand
manufactur
ersint
roducehundredsofnewpr oductseachy ear.Agrowing
numberofretai
ler
saretakingstepstobet
teroptimizetheirproduct
port
fol
iosbyweedoutr edundantorl
aggardSKUs( Stock-keepingunit
s).
05.UnderstandingConsumerBuy i
ngBehav i
or–Bot hpr act
it
ionersand
academicsar eint
erestedi
nlearningmor eaboutimpul si
vebuy i
ngbehav i
or.
Whiletheli
terat
ureisr i
chwithstudiesexaminingindiv
idualf
act or
sthat
l
eadt oimpulsiv
ebuy ingbehavi
or ,
fewst udi
esattemptacompr ehensive
approachtounder st
andingtheconcur r
entinfl
uencesonaconsumer ’
s
i
mpul sebuyingdecisionasitoccursduringashoppi ngexperience.

06.ImpulseBuy i
ngBehav i
or–I mpulsiv
epur chasedecisi
onasapur chase
decisi
onmadei nthestor
eforwhi chthereisnopr i
orrecogni
ti
onofneed.
I
mpul sepurchasesoccurwhenaconsumerseesapr oductinthest
oreand
duet oastrongurgetopossesst heitem purchasesitwit
hlit
tl
eorno
del
iberati
on.Thistypeofbuy i
ngbehav i
orconsistsof“rel
ati
vel
yrapi
d
decisi
on–maki ngandasubj ect
ivebiasinfavorofimmedi at
epossession”
.
I
toccur swithoutalotofref
lecti
on.
Cust
omerSer
viceandCust
omerSat
isf
act
ion-:
CustomerSer vi
ce–Cust omerser v
icei
sakeycompet i
ti
vedi ff
erentiator
andshouldbeseenasal ong-ter
m commi t
mentandwi llnotsucceedi fi
ti s
viewedonlyasashor tter
mt acti
c.Ownershi
poft hecustomerser v
iceof fer
andtheneedf orconti
nuousi mprovementhastobedr i
venf rom thet opof
theorgani
zationwhethertheowner–managerort heboar d.Customer
knowledgehast obeupdat edconstant
lyasthei
rv i
ewandbehav iors
changeandt hatknowledgeshouldbeusedt odri
v eret
ailcustomerser v
ice
l
ev el
s.
Det
ermi
nant
sofSuccessf
ulCust
omerSer
vice:
–
01.Defi
neServi
ce–Af t
ery
ouhavedet
erminedthatther
earesoli
dr easons
tobeinfi
eld,
thenextst
epist
odefi
netheelementsofgreatser
vice.This

14
B.
K.COLLEGE,
BELGAUM
requi
resresponsest
othequesti
ons:Whatdoyourcust
omersthi
nkis
greatser
vice?Whatdoyourcustomer
swant?Whatcreat
esloyal
ty?
02.Recogni zeCustomersWant–Pl easingcust
omer s,i
nwhat ever
terminologyyouchooset ouse, hasbeenandcontinuoustobet heov er
all
goal ofgreatserv
ice.Deli
ghtisachievedwhen:Cust omersreceiveser
vice
beyondt heirnor
mal expectati
ons.Customersare“surpri
sed”wi t
h
pleasurableexperi
enceleadingtopositi
vewordofmout h.
3.CreateCust
omerLoyalt
y–Acti
onst
hatpr
oducecust
omerl
oyal
tyar
e:
Proacti
vel
yprovi
dingi
nfor
mat
ion.
Notifyi
ngthecust
omerofnewoppor t
uni
ti
es.Avoi
dingunpl
easant
surpr
ises.Prov
idi
ngconsi
stent
lygoodser
vice.Cr
eati
ngperson
rel
ati
onships.
04.St
aples–Stapl
esarefocal
point
sforserv
ice.Whil
etheymaybesi mple
andoft
enoverl
ooked,
applyi
ngthesestapl
esregul
arl
yandconsistentl
ywil
l
makethedif
fer
encebetweenmediocreandexcell
entser
vice.I
tincl
udes:
Befri
endlyListentowhatacust omerwant stotel
lyou.Beespecial
ly
ki
ndwhensomeonehasexper i
encedal oss.Prov
ideinfor
mat i
on.
Conti
nual
lyprovidegoodservi
ceev enint het
oughtimes.Ignore
cust
omermi stakes.Bendtherulesifyoucan.Tellt
hecust omerabouta
sal
ecominguporanewpr oductorservice.
05.Demonst r
atePersonal
Effect
iveness–Per sonaleff
ecti
venesscreates
afoundationforbui
l
dingcustomerloyalt
y.Thef or
um corporat
ion,
Effecti
ve
communi cati
on,Ser
viceat
ti
tude.Problem sol
ving,Cont
inuouslear
ning,
Int
egri
ty.
06.Under
standCust
omerExpect
ati
ons–I
tincl
udes,
Reli
abili
ty:I
tmeansdel i
veri
ngwhati spromised.
Responsi v
eness:Doingitpromptly.
Assurance: Knowinghowt odoi t
.
Empat hy:Doingitwit
hrespectandunder st
anding.
Tangibles:Ensuri
ngthatbuil
dings,sur
roundi
ngsandmat
eri
alsar
e
at
tract
ive.

07.GoodFi
rstI
mpr
essi
on–Ther
etai
l
ersmustensur
ethatev
eryf
ront
li
ne
15
B.
K.COLLEGE,
BELGAUM
associ
atesiscapableofmaki
ngagoodf i
rstimpr
essi
on.Fi
rstopi
nionsare
for
medwi thi
nt hef
ir
st10seconds.Younev erhav
easecondopportunit
yto
makeawar m andwelcomi
ngfi
rstimpression.
08.Appr
eciat
eCustomers–Showappreciat
iontocust
omers.Thanki
ng
cust
omersinameaningful
andthought
fulmanneronever
yencounter
.
Makecustomersf
eelimport
antandappreci
ated.
09.CreateaWor ki
ngCult
ure–Createawor ki
ngcultur
ewherebyyour
associ
atesaretr
eatedasfamil
yandneighborsandtheywi
ll
,i
nt ur
n,tr
eat
yourcustomerst
hesameway .Customersnoticeandappr
eci
atewhena
companyappreciat
esthei
rassoci
ates.
10.RespondtoCustomer s–Answerquest i
onsfr
om customersbydir
ect
i
nquir
yandpr ovi
dingthem wit
haddit
ionalusef
uli
nfor
mat i
on.Customers
oft
enenjoylear
ningmor eaboutapotenti
alpur
chasethanwhat’swri
tt
en
onatagorinabr ochure.
11.HelpCust
omer s–Under standt hatt
heunderl
yingingr
edientof
customerser
vicei
shel pingpeopl e.Makesurethateveryfr
ontli
ne
associ
atehasahistoryofhel pingpeople.I
twil
lalmostguaranteeagr
eat
customerser
viceexperience.
CustomerSati
sfacti
on:-Customersati
sfact
ioni
samarket
ingt
ermthat
measureshowpr oductsorserv
icessuppli
edbyacompanymeetor
exceedsacustomer’sexpect
ati
on.
Accordi
ngtoPhi l
ipKotl
er–“ Ift
hepr oductmat chesexpectati
ons,t
he
consumerissatisfi
ed;i
fitexceedst hem, t
heconsumeri shighl
ysati
sfi
ed,
i
fitfal
lsshort
,theconsumeri sdissatisf
ied”.Ther
efor
e,satisf
acti
onis
measuredbasedont wokeyv ari
ablesv i
z.,(
i)Customerexpectat
ion&(ii
)
Productperf
ormance.
Customersati
sfact
ion,
ordissati
sfacti
on,i
sthefeel
i
ngacust omerhas
abouttheext
enttowhichtheirexperi
enceswit
htheproducthavemetthei
r
needs.
01.Segment at
ion–Di vi
dethemar keti
ntosuit
ablesegmentsonwhich
organi
zationwill
focus.Iti
snecessaryt
odev el
opdiffer
entst
rategyf
or
eachmar ketsegment.Companyshoul dusediff
erentmarket
ingapproach,
advert
isi
ngandpr omot i
onsforeachcustomersegment .

16
B.
K.COLLEGE,
BELGAUM
02.Treatever
ycustomerasav aluableasset–Everycustomeris
i
mpor tantf
orthecompany.Whet heracustomerbuysgoodswor thRs.100
orRs.10,000,hei
sstil
lacustomert otheorgani
zat
ion.Nevertheless,
companyshoul dprov
idebenefi
ts,bonusesandextr
aser v
iceforthemost
val
uablecustomers.
03.Locatedist
ri
buti
oncent er
’snearcustomers–Companyshouldensure
thatthedi
stri
buti
oncentersareeasil
yapproachablebygoodnumberof
customers.Locat
ionshouldhavefacil
it
iesli
keparkingf
orvehi
cl
es,
nearnesstopubli
ctransportf
acil
it
yetc.
04.EnhanceCustomerSati
sfact
ion–Pr oductqual
i
tyal
onewill
nothelpan
organi
zati
ontosati
sfyi
tscustomers.Companiesshoul
dalsopayatt
enti
on
toservi
cequal
it
yalso.Thi
shelpscustomerinenjoyi
ngtot
alpur
chase
experi
ence.
05.ProductDesign–Compani esshoulddesignt
heproductwi
thmult
ipl
e
funct
ions.Provi
deuserrelat
edinfor
mationl
ikeusergui
de,war
rant
y,
complaintcard,
sati
sfact
ionfeedback,
etc.
06.ConstantMarketResearch–Companyshoul dconductpreli
minar
y
marketr
esearch,
bef or
etheproductorservi
ceisdesi
gned.Thiswil
lhel
p
companytounderstandexactcustomerrequi
rement.
07.Buil
dentrybarr
ier
s–Companyshoul dbuil
dentrancebarri
ersfor
competit
orsbyenhancementofproductorser
viceadvantages.I
nt hi
s
dir
ecti
on,companyshouldbewatchingthemarketconti
nuouslytoknow
thechangingneedofthecust
omer.
08.Avoi
dunnecessar
ypromises–Companiesshouldnotov
erst
atet
he
perf
ormanceofthepr
oduct.Thi
scr
eat
esdissati
sfact
ioni
nthemindsof
cust
omers.
09.Applyintegratedappr
oach–Companyshouldbeawar et hat
sati
sfacti
onofcust omerwants,
needsandexpect
ati
onsi sanev erending
chall
enge.Theyshoul dst
riv
etoest
abli
shlong–term businessall
iances
withcustomer s.Companyshoul
dcreat
eorgani
zati
ont r
ademar kand
preservebrandimage.
10.EncourageCust
omerFeedback–Companyshouldencourage
customerstooff
erfeedbackaboutt
hepr
oductandser
vicequal
it
y.Each

17
B.
K.COLLEGE,
BELGAUM
f
eedbackshoul
dbev
iewedasanoppor
tuni
tyf
ori
mpr
ovement
.
11.CustomerRel at
ionshipManagement–Compani esshouldtreateach
customerasav al
uableasset.Companiesshoul
dmaintainconstantt
ouch
withthesecustomer s.Companiesshoulddevel
opahabitofsending
communi cati
onf r
equentlyt
ot hesecust
omers,sot
hatcustomer swil
l
remembert hecompany .
Meani
ng–
Busi
nessplani
sawr it
tendocumentthatdescri
besindetai
l howanew
busi
nessisgoi
ngtoachieveit
sgoals.Abusinessplanwil
llayoutawri
tt
en
pl
anfrom amarket
ing,fi
nanci
alandoperat
ionalvi
ewpoint.
Fact
orst
oConsi
deri
nPr
epar
ingaBusi
nessPl
an
01.SoundBusi nessConcept–Thecommonmi stakemadeby
entr
epreneur
si snotselect
ingtherightbusinessinit
ial
l
y.Thebestwayto
l
earnabouty ourprospecti
vebusinessistowor kforsomeoneelseinthat
busi
nessbefor ebeginni
ngy ourown.Therecanbeahugegapbet ween
yourconceptofaf i
nebusinessandr eali
ty.
02.MarketUnderstandi
ng–Agoodwayt otestunder
standi
ngi
stot
est
markettheproductorserv
icebef
orest
art
.
03.Industr
yGr owt
handStabil
it
y–Ensur
ethei
ndust
rygr
owt
handst
abi
l
ity
beforestar
tinganybusi
ness.
04.ManagementAbi l
i
ty–Lookf orpeoplewhohav
egoodethi
calval
ues,
havecomplementaryskil
lsandsmarter
.Plant
ohir
epeoplewhohavethe
requi
redski
ll
s.Defi
ney ouruni
queabil
it
yandseekoutot
herswhotur
ny our
weaknessint
ostrengths.
05.Financi
alContr
olAbil
i
ty–Theyneedtolear
naccounti
ng,comput
er
soft
erandcashflowmanagementtechni
ques.Theyneedtodevel
op
fi
nancial
contr
olabil
it
y.
06.Ski
ll
sofFi
nanci
alManagement–Bui l
daqual
i
fiedt
eam t
oev
aluat
ethe
bestopt
ionsf
oruti
l
izi
ngret
ainedear
nings
07.BusinessFocus–Peoplewhospeci
ali
zeinaproductorser
vicewi
l
ldo
bettert
hanpeoplewhodonotspeci
ali
ze.Focusy
oureffort
sonsomething
thatyoucandosowellthatyouwi
ll
notbecompet i
ngsolel
yonthebasi
sof
18
B.
K.COLLEGE,
BELGAUM
pr
ice.
08.AMi ndsett
oAntici
pateChange–Don’ tcommityoursel
ftooearl
y.
Yourfi
rstpl
anshoul
dbewr i
tt
eninpencil
,notini
nk.Keepafluidmindset
andbeaggressi
veinmakingr ev
isi
onsaswar r
antedbychanging
ci
rcumstancesandexpandingknowledge.

Implement ati
on-: Impl ementationisanessent ialpartoftheplanning
process.Thebestpol iciesandpl ansdonotpr oducer esul
tsuntil
theyare
tr
anslatedintoaction.Manyst rategi
esfai
l topr oducedesi r
edresults
becauseoft hef ai
lurei nproperimplement ati
onoft heselect
edst r
ategy.
Themanagementshoul dhavethe“ wi
ll
”toadapti t
selftochanges.Al l
the
designedpol i
ciesandst rat
egiesshouldbeef fectivelycommuni catedin
measur ableterms.Mer edesigningastrategyi snotenough.I ti
st obe
effect
ivelycommuni catedtot helowerlev
el s.Necessar yresources,
monet aryandnon–monet ary,aretobepr ovidedt otheconcerned
department sforimpl ement at
ion.
St
epsi
nImpl
ement
ati
onofaSt
rat
egy–
01.ResourceAl l
ocati
on–Af terdesi gningst
rat
egiest obeadopt edinplans
andf i
nali
zi
ngthem, thetopmanagementshoul dtakenecessar ystepsfor
i
mpl ementingthedesignedstrategy.Al lt
hedesignedpolici
esand
str
ategiesshouldbeef f
ecti
velycommuni cat
edi nmeasur ableterms.Mere
designi
ngast r
ategyisnotenough.I tistobeeffecti
velycommuni catedto
thelowerlevel
s.Necessaryresour ces,monetaryandnon–monet ar
y,are
tobepr ovi
dedtot heconcerneddepar t
mentsforimplement ati
on.
02.Fi
xingKeyTasksandPriori
ti
es–Thet opmanagement ,
whenf i
nali
ze
theoperati
onal
planshoul
dincorpor
ateineachoper
ati
onalplant
het asks
tobeperformedbythemanagerandt heworktobecar
riedoutaccording
topri
orit
y.
03.Assi
gni
ngtheTasks–Aspertheoper
ati
onal
plan,
thetaskshavet
obe
assi
gnedtoconcer
nedmanager
sandthei
rworkfor
ceforsuccessf
ul
i
mplementat
ion.
04.Authori
tyDel
egat
ion–Forthesmoot
hrunni
ngofeachst
rategi
c
operat
ionalpl
an,
theconcer
nedmanager
sandthekeyworkf
orceli
ke

19
B.
K.COLLEGE,
BELGAUM
For
eman,mar
ket
ingexecut
iveet
c.,
hav
etobedel
egat
edwi
thcer
tai
n
aut
hor
it
yandpower.
05.Formul
atingMethods–Ev eryoper at
ionshouldbecohesiveandwor k
fl
owf r
om oneoperati
ont oanot hershoul dbesmooth.Thereshouldnotbe
zi
g–zagorbackt r
acking.Thet askshoul dbecompletedwithintheti
me
peri
od.Theco–or di
nationtakespl acet hrought
hescient
if
icoperati
on
methodstobef or
mulated.Eachoper ati
onshouldhaveuninterr
upted
syst
em, methodsandpr ocedure.
06.Pol i
cies,Goal s,MISandFeedback–Af t erdesi gningt hemet hodsand
proceduref orimpl ement i
ngt hest r
at egicplan, whatt askt heconcer ned
managerhast oper f
orm, whatgoal hehast oachi ev eet c.,havet obe
i
nfor medt ohi mf orsuccessf ulimplement at i
onoft hepl an.Eachmanager
assignedwi t
ht hetaskofi mpl ement ingast rategict askshoul dgetr el
evant
i
nfor mati
ont otakedeci sions.“Thebet terthei nformat i
onsy stem,the
betterther esulti
ngdeci si
on” .Thishappensbecauset hei nformat i
on
system mi nimizesr i
skanduncer t
aintyi ndeci sionmaki ng.Thus
ManagementI nformationSy stem {MI S}prov idesabasef ordecision–
maki ng.MI Sshoul dbeat wowaysy stem.Thi smeanst hatwhi letop
managementpr ovi
desinf ormationtot hest rategist,anot hersy stem should
providefeedbackt othet opmanagementr egar di
ngoper ations.
07.Rewar dsandI ncenti
ves–Thi sisamotivati
onalf
actor
.Tomot i
vate
thepeopleatwor k,cert
ainincent
ivesandr
ewar dsaretobeinst
it
uted.I
t
shouldbeapar toft hestr
ategicpl
anandshouldbeawar dedasandwhen
part
icul
artaskaref ull
yperformed.Thi
srei
nforcesthebehavi
orofworkers
tonewsy stems.
08.Traini
ngt heTrainers–Thewor kknowl edgehast obeupdatedand
maintai
nedt hroughwor kshops,seminars,
inbui
ltcontinui
ngtrai
ning
programs.Thi sisanothervi
talaspecttobelookedaf ter
,whil
e
i
mpl ementingt hestrat
egicpl
an.Thus,manager i
altalentsar
edev el
oped
andmanager sareeducatedinv al
uesandst yl
esoft heorgani
zati
on.
09.Impl ementat
ion–Ev eryoper ati
onwillbemonitored.Resul
tsar e
analyzedandcompar edwi thstrategiesfor
mulatedforthesuccessoft he
operation.I
tisnotsurethatst r
ategiesandplansdomat chwit
ht heactual
resul
ts.Therewillbeli
tt
ledifferencebetweentheactual andplanned
programs.Thishast obecl oselyobservedandthedev iati
onshav eto
20
B.
K.COLLEGE,
BELGAUM
i
nfor
mtot
het
opmanagementt
hroughasoundf
eedbacksy
stem.
10.Restr
ucturi
ngtheSt rategy–Inthisprocessacti
onistakenf
or
removingthedefectsinthest r
ategyfor
mul at
ionnoti
cedatthet
imeof
i
mpl ementat
ion,changingt heworkfor
cewhoi mplementsthest
rat
egy
,re-
all
ocati
onofresourceset c.,ar
etobecarefull
ydone.
Ri
skAnal
ysi
s-:
MeaningofRisk-Ar i
skisanuncert
aint
ythati
saf f
il
iat
edwi thaparti
cular
ci
rcumstancethatcoul
drenderabusinessi
noperableorcausef i
nanci
al
i
nsecuri
ti
esforthecompany.Itist
heprocessofdeterminingwhethera
part
icul
aruncert
ainci
rcumstancehastothepotenti
altothreat
eny our
busi
nessoperati
ons.
Meani ngofRi skAnal ysi
s–Ri skanal ysisi sthepr ocessofdefiningand
analyzingthedanger st oindivi
dual s,busi nessesandgov ernmentagenci es
posedbypot enti
al naturalandhuman–causedadv erseevents.Arisk
analysisreportcanbeei therquant i
tati
v eorqual i
tati
ve.Inquantit
ati
ver isk
analysis,anattempti smadet onumer ical l
ydetermi netheprobabili
ti
esof
vari
ousadv er
seev entsandt helikelyext entoft helossesifapar ti
cular
eventtakespl ace.Qual i
tativ
er i
skanal ysi s,whichi susedmor eof t
en, does
notinvolvenumer icalprobabi l
it
iesorpr edicti
onsofl oss.
Ther
ear
efourt
ypesofr
isksi
nvol
vedi
nst
rat
egyi
mpl
ement
ati
on.Theyar
e
–
01.St
rat
egyRi
sk–Badstrat
egyisthef
ir
stri
sk.Manycompani
eswi
l
lfai
l
miser
abl
ybecauseoft
hei
rpoor
lydevel
opedstr
ategy
.
02.Gov ernanceRisk–WeakCor porat eGovernanceisthesecondr isk.
WeakCor porateGovernancemeanst hattheorganizati
on’ssyst
em and
processesf orpromoti
ngi t
sstrat
egy, incl
udingtherelat
ionshipbetween
managementandt heboardofdirect
or s,needsfinetuningforbett
er
i
mpl ement ati
on.Goodcor por
ategov ernancerequiresthattheboardplaya
centralrol
einst r
ategy
.
03.Organi
zati
onalRi
sk–Mi sali
gnedorgani
zationalstr
uctur
eand/or
organi
zati
onalcul
tur
earethethir
dri
sk.Organi
zat i
onalstr
uctur
emeans
howdecisionmakingaut
horit
yisall
ocatedthr
ought hecompanyandhow
thefi
rm’sunit
srel
atetoandwor kwit
heachot her.Lackoffi
tbetween

21
B.
K.COLLEGE,
BELGAUM
or
gani
zat
ional
str
uct
ureandst
rat
egyi
mpedei
mpl
ement
ati
on.
04.Peopl eRisk–Wr ongpeopl eandr esi
stancetochangeconst i
tutetwo
l
argepi ecesofthefourthri
sk.Wr ongpeoplemeant hatthecompanyi s
selecti
ngandkeepi ngpeoplewhodonotf iti
tsstrategy.Ifthecompany
woul dl
iketocompet eonpr oducinginnovati
ngpr oducts,companyshoul d
hir
epeopl ewhoembr acechangeanddi srupti
on.Resistancet ochangeis
oneoft hebiggestobstacl
est osuccessfulimplement ati
on.Therefor
e,the
companymustcl earl
yexplainthe„whyandwhat ‟behindanewst rat
egy

22
B.
K.COLLEGE,
BELGAUM