Why Do Retail Consumers Buy - Assignment Example

Why do Retail Consumers Buy? “Shopping is the central focus of human activity,” says retail anthropologist Paco Underhill in his book “Why We Buy”that has been hailed by the San Francisco Chronicle as “a Sherlock Holmes” for retailers (Vince). There are two types of shopping: traditional shopping and online shopping. The first involves consumers physically visiting retail stores and buying goods. The latter occurs when consumers select, place orders and receive goods via the Internet. While online shopping is a relatively new phenomenon, traditional shopping still comprises the bulk of shopping done today by people all over the world as well as in the U.S. Retail shopping can be defined as the process of evaluation of goods or services from retail outlets by consumers aiming to buy those goods or services. Retail shopping takes place in different venues ranging from hypermarkets, shopping malls and departmental stores to bazaars, second-hand stores, dollar stores and flea markets. Today, retail shopping is not only a necessity that enables retail consumers to acquire goods or services for use in everyday life, but it is also a leisure activity that combines delight, relaxation, amusement and the chance to spend ‘quality time’ with friends and relatives. In a few cases, retail shopping is an arduous, time-consuming and unpleasant activity where consumers are obliged to line up in long queues for long hours to purchase popular items {for example, during holiday shopping}. The retail consumer’s decision to buy is a successful culmination of eight consecutive stages: ‘need’ which convinces the retail consumer to buy certain goods or services, ‘awareness’ involving advertisers of goods and services reaching out to prospective buyers using persuasive brand communication, ‘preference’ when retail consumers decide that they prefer certain brands, ‘search’ involving consumers initiating searches for retail outlets where their preferred brand is being sold, ‘selection’ involving choosing their preferred item, ‘purchase’ involving the consumer conveying final confirmation by paying for the item, ‘use’ involves the consumer making practical use of the item, and ‘satisfaction’ involving the consumer’s firm conviction that the item purchased has fully lived up to expectations (Sharma). Realizing the increasing importance of consumers’ patronage, retail outlets adopt several unique practices to entice them to buy. These efforts are concentrated in three directions. I) Atmospherics Phil Kotler defines Atmospherics as “the effort to design buying environments to produce specific emotional effects in the buyer that enhance his or her purchase probability.” In “Marketing of the Mind”, the authors argue that people visit a mall solely for its disorienting effect; they call it a “vacation from the senses, much like drinking alcohol.” Atmospherics represents a new approach to marketing ideas on the foundation of psychological research. The majority of the American public is unaware that they have been spending more or less time in stores, trudging slower or accelerating faster through the aisles, and purchasing items that have no concrete value to them because their unconscious mind is being told to make decisions contrary to that which they desire. Atmospherics create an illusion that stores try to sustain throughout the retail consumer’s shopping experience. Storeowners attempt to influence consumers by creating an alluringly innovative store layout. Victor Gruen is accredited with conceiving an ideal environment for a shopping mall where departmental stores are placed at opposite ends of the interior walkway – the logic being that consumers must pass all of the smaller shops when traversing between them. Along with climatic control, a lack of clocks, and centrally controlled lighting, the consumer loses all sense of direction, time of day and duration of his or her stay; the consumers’ eyes literally becomes glazed over, and they lose the ability to make economically realistic decisions. To aid the overall effect, parking is often located underneath the store’s premises, so consumers cannot determine where in the store they are making their entrance, which adds to their disorientation. The shopping environment is thus transformed from a relatively neutral place to one that urges consumers to behave in such a way as to be beneficial to the store but financially detrimental to the consumer (Walsh). II) Store interior décor and product layout 1) Lighting Display windows, says Dan Frering of the Lighting Research Center (LRC), “create visual interest and make the merchandise stand out from the background.” Retailers adopt revolutionary lighting methods such as the hugely popular Light-Emitting Diodes commonly known as LEDs which a 84% of consumers call ‘eye-catching.’ Retailers use LEDs in display windows to illuminate merchandise and mannequins, attract attention of consumers, and even send a message about the quality of their store. In addition, it cuts consumption of energy in display windows by 30 to 50 percent. When one considers the 2005 U.S Department of Energy’s statement that lighting comprises 37% of retail stores’ yearly expenditure, the LEDs-induced savings is very substantial, benefitting the retailers as well as the country as a whole (Lighting Research Center). 2) Wider Aisles Paco Underhill disclosed about the “butt brush” factor which influences retail consumer behavior inside a shopping environment. Bumped from behind by sales persons or other shoppers, retail consumers {especially women} become offended, irritated and move elsewhere. Storeowners attempt to influence customers by providing wider aisles in their inner environment, so that they do not put their patrons through ‘butt brushing’ nightmares (Vince). 3) Male containment Women are undoubtedly the primary buyers in the American market place. They frequently go shopping with their husbands or boyfriends. They need an area, within the shopping environment or adjoining it, to keep their men passively restrained so that the women themselves are happier and in a more relaxed frame of mind to spend more money and time in the store. Wise stores attempt to influence valuable women retail consumers by providing a space within the store environment where women can “check” their husbands or boyfriends. Such a room is provided with a big screen T.V that shows the latest sports events. Alternatively, the location of the store is shrewdly chosen to be next to a Radio Shack or Circuit City so that husbands and boyfriends are distracted long enough by such entertainment to enable their women to do some serious shopping (Walsh). 4) Pleasant odor and sound Research has clearly indicated that contemplative retail consumers {those who do not generally make unplanned purchases} spend more money when a pleasant odor exists in the background as it enhances their more seasoned and cognitive processing efforts. However, impulsive consumers {those who make unplanned purchases very often} tend to spend more when pleasant music is played in the background, as they get turned on by music that enhances their emotions. Retailers attempt to influence contemplative customers by diffusing a citrus scent at regular intervals {usually 6 minutes} through devices throughout the stores (Rutgers). For impulsive consumers, business owners use the “piped-in music” system. The most popular choice is pop songs that are played as “easy-listening instrumentals.” Stores with a target audience of young consumers normally play upbeat electronic and other music that is usually heard on a night out on the town, inferring an unconscious association with a more jet-setting lifestyle (Walsh). 5) Proper display Retail consumers prefer “eye contact” with the goods they purchase, meaning that they do not buy what they cannot see. It is therefore important that the store has a proper display of products. Retailers attempt to influence consumers by displaying products in a display zone that begins from knee level and ends at slightly above eye-level, as visibility is highest in this zone. On bottom shelves, large products are displayed whose packaging attracts the consumer’s attention. Some retailers install bottom shelves that tilt upward to improve visibility. Stores also place an item next to another to generate a “spark” {and sell more of both products} like displaying peanut butter and jelly together, or pasta with tomato sauce (Walsh). 6) “Test and try” facilities Retail shopping is a “contact” sport because shoppers want to experience the product they are considering. Storeowners attempt to influence retail consumers by providing “trial rooms” where consumers can view themselves from all angles in 3 way mirrors. In addition to this facility, “testing” areas are also provided at appropriate counters where consumers can try out products. At the cosmetic counter, a consumer can test a lipstick or makeup to see if the shade is right. A consumer at the lingerie section can visit the trial room to try out an alluring negligee to see if she looks as alluring in it. At the clothes counter, a male consumer can visit the trial room and try on a tuxedo to see if it fits him well. Many shrewd storeowners employ fitters on their premises, thereby allowing for alterations to clothes (Walsh). III) Employees Business owners attempt to influence consumers by having well-trained and handpicked employees in different sections who are told: “The customer is always right.” The psychological set up of the consumers is the prime target because they tend to act in certain unique ways when confronted with certain unique situations (Vince). For example, the holiday shopping season {September to December} is bonanza time where U.S retailers achieve more than 40% of their annual turnover. Shoppers of both sexes are particularly selective when it comes to choosing gifts for friends and relatives; they do not mind literally ‘shopping till they drop’ to unearth that perfect gift (Cotton Inc.). Women consumers demand a large amount of information and service. When two or more women shop together, they absolutely dominate, with each shopper encouraging and cheering on her partners. Men rarely ask for help; they would rather obtain information themselves from a brochure or video. Teens are assertive shoppers: they know exactly what they want. Obese consumers are susceptible to discriminatory feelings. Sales persons are trained to provide all the information women consumers require. In fashion stores, sales persons encourage women to take time to try out the clothing item in their trial rooms, also making known that fitters are on the premises to conduct alterations if needed. A variety of brochures are made available to male consumers so that they can browse at leisure. Sales persons are trained to go along with teens, being reticent yet suggestive at the same time. Sales persons are strictly taught not to overtly discriminate against obese consumers by adopting methods such as avoiding eye contact, rudeness or hurrying the sale (Vince). Conclusion Noting that the U.S retail sales industry has an annual turnover in excess of $ 3 trillion, consumer insights national expert Pam Danzinger correctly said: “Shopping has become America’s pastime.” Retail stores take customer behavior seriously and carefully examine and analyze it from every angle. As a result of this, retail marketing today has developed into a meticulously fine art. A very crucial part of their strategy involves keeping track of changes in the shopping behavior patterns of their clients. This move has been fuelled by several interesting marketing reports compiled by reputed sources. For example, reports from American ShopperScape belonging to Retail Forward confirmed that as many as 60% retail consumers’ shopping behavior underwent a significant change between 2003 and 2006, the new behavior involving them displaying a trend of not only visiting a lesser number of retail outlets, but also homing back to their preferred stores more frequently than 3 years ago. A second report by the Lifestyle Monitor of Cotton Inc. reported that 35% of retail consumers patronized chain stores such as Sears and JCPenny in 2006 as compared to only 30% a year earlier; also, 40% of male retail customers admitted to shopping in chain stores in 2006 as compared to only 29% in 2005. A third report, also by the Lifestyle Monitor, found that 31% of retail consumers of an average age of 40 years preferred shopping at specialty stores such as Bed Bath and Beyond for home textiles in 2006, a percentage up from 27% a year ago (Cotton Inc.). Given the oft-touted expression that ‘sex sells’ one cannot discount the use of macabre practices to boost sales. A good example occurred in France 5 years ago. On 11th May 2003, ‘The Guardian’ newspaper reported that the famed Paris fashion store “Galeries Lafayette” offered free striptease lessons to its women retail consumers. It involved half hour courses given by professional striptease artists who practically demonstrate valuable “male allurement” tactics such as: “always wear heels, never wear knee-high stockings, always unbutton your blouse from the bottom, try to avoid getting your skirt caught on your shoes, and make sure the whole thing is over in maximum five minutes” (Henley). Outline Title: Why do Retail Consumers Buy? I. Introduction A. Retail shopping involves evaluation of goods or services with the aim of buying them. B. Decision to buy consists of 8 stages. II. Body. A. Atmospherics 1. It is a new approach to marketing ideas based on psychological research. 2. Interiors are designed to produce emotional effects that enhance purchase probability. 3. Victor Gruen is accredited with conceiving the ideal shopping mall environment. B. Store Interior Décor and Product Layout. 1. Proper lighting especially with cost saving LEDs benefits all. 2. Wider aisles reduces ‘butt brushing’ embarrasment otherwise faced by consumers. 3. Well equipped male containment areas keep menfolk busy, thus enabling their women to shop well. 4. Stores introduce pleasant odors and music for contemplative and impulsive customers respectively. 5. Innovative display techniques enable consumers have better ‘eye contact’ with goods. 6. ‘Trial’ rooms and ‘Testing’ facilities enable consumers to be fully satisfied with their purchases. C. Employees. 1. Well-trained employees should always remember that ‘The customer is always right.’ 2. Consumers tend to act in unique ways in certain circumstances. III. Conclusion. A. With annual sales in excess of $ 3 trillion, shopping has become America’s favorite pastime. B. Retailers keep track of latest surveys about consumer behavior, may be even macabre ones. References: “The Art of Shopping.” Cotton Incorporated. 2006. 14 Oct. 2008. Henley, Jon. “Parisian Store Hopes Striptease Plan Will Take Off.” The Guardian Co. Limited. 2003. 14 Oct. 2008. “LED Lighting Saves Energy, Attracts Shoppers to Retail Windows.” Lighting Research Center. 2005. 14 Oct. 2008. Sharma, Surajit Sen. “Media Planning and Consumer Decision-Making Process.” Advertisingcrossing.com. (N.d). 14 Oct. 2008. “Smell & Sound Key to Sales, Says Rutgers-Camden Marketing Research.” Rutgers-The State University of New Jersey. 2005. 14 Oct 2008. Vince, Juliano. “Why We Buy: The Science of Shopping.” Uconn.edu. July/August 2000. 14 Oct. 2008. Walsh, Brian. “Media Literacy for the Unconscious Mind.” The Journal of New Media & Culture. 2002, Vol. 1, No. 1. 14 Oct 2008. Read More