Effect of Environmental Variables on Consumers - Research Paper Example

EFFECT OF ENVIRONMENTAL VARIABLES ON CONSUMERS By: EXECUTIVE SUMMARY OVERVIEW: the main purpose of this management report is to investigate and evaluate consumer shopping behavior that is what influences or determines whether a particular consumer will chose to shop at a particular shop or not. Focus will be on the psychological factors.it then offers key recommendations on how we can attract consumers to the supermarket. BACKGROUND: since the inception of trade consumer behavior has been one of the most researched topics in the business world.it has been noted in many publications that consumer decision to buy is motivated by cultural, psychological, social and personal factors. KEY AREAS: EXTERNAL VARIABLES Signs directing the shopper to the supermarket. Where they appear, their visibility and coloring. Building size, color and the architectural design whether it is pleasing to the eye or not. Parking space and availability of ample parking around the store, the type and availability of surrounding stores. The appearance and location of the area the supermarket is located, including security. Architectural design of the entrance and availability of security personnel INTERIOR VARIABLES Lighting both inside and outside of the supermarket. Type of music playing in the supermarket and its volume, the type of floor laid on the supermarket, Color schemes on the walls and roof of the shop, Perfume scents used inside the building. The width of the aisles and how they are designed. The temperature and presence of air conditioning. General cleanliness of the room. LAYOUT AND DESIGN VARIABLES Space design and size. The placement of equipment and work stations Availability of waiting areas and how they are placed. Furniture type and dead areas POINT OF SALE AND DECORATIONS VARIABLES Point of purchase display, Pictures displayed, Price displays, Wall decorations, Permanent product displays CONCLUSION: It is clear that many of the variables that will influence consumer purchasing have to do with the supermarkets environment. This means that if the right balance in the shopping environment can be struck then sales can be boosted as consumers will be attracted to the supermarket CONTENTS 1 Introduction 1.1 terms of reference 1.2an introduction into effect of the environment on consumer behavior 1.3consumer behavior trends 2. Selection of supermarket and identification of customers. 3. Environmental variables influencing consumer behavior 3.1 external variables and their influence 3.2 interior variables and their influence 3.3 layout and design variables and their influence 3.4 POP and decorations variables and their influence 4. Conclusion 5. References and Bibliography 1. INTRODUCTION 1.1 Terms of reference Researches into consumer behavior in retail stores such as supermarkets usually are centered on documentation of purchasing patterns and identification of customers (SOKOLOWSKI 2011, pg102). This studies aim at the discovery of consumer reaction to changes in the shopping environment and determining whether they are positive or negative.in addition they determine why a consumer decides to spend in a particular shop and not in another. Market research in the present world is centered primarily on consumer behavior. I predict that in future many research studies will be on the effect of the business environment on the consumer behavior. This paper summarizes my experience in the contracted supermarket focusing primarily on its environmental variables such as its appearance, point of sale display, layout and design and other internal variables. 1.2 An introduction into the effect of the environment on consumer behavior Consumer behavior refers to the tendencies and attitudes displayed by consumers towards products or the supermarket in this case, which influences their purchasing patterns and loyalty to the store and its products (NOEL 2009, pg9). It is a fact in the business world that the business environment is such a huge factor influencing consumer behavior. Customers tend to favor stores which are located in the outskirts of town where security is ample, stores with good lighting, cool music, large in size and stores with pleasant architectural designs (Baker, Levy & Grewal 1992, pg19). They also tend to be drawn to stores which are located near affiliate stores for example a supermarket and a restaurant. A study into the behavior has concluded that it is possible to build customer loyalty by providing an environment that is convenient and pleasing to the customers (NOEL 2009, pg31). 1.3. Consumer behavior trends Many stores in the world are focusing their efforts in attracting consumers to their stores. Some of the trends include playing of cool soothing music, provision of after sale services, advertisements, free parking space, good lighting and security. Consumers are now able to pay using master cards and enjoy many other points of sale advantages. All this efforts are designed at influencing consumer behavior (SOKOLOWSKI 2011, pg91). 2.0. Selection of supermarket and identification of customers The selected supermarket store is located in the outskirts of town and is small in size with an unguarded entrance. Parking space is shared with a large hardware store while there are no restaurants in the vicinity. The sign that a guide’s shopper to the supermarket is located about 1.5km from the supermarket. The target customers are all those customers who are regular shoppers and a couple of new shoppers. 3.0 Environmental variables influencing consumer behavior According to NOEL (2009, pg59), environmental variables can generally be categorized into external variables, interior variables, layout and design variables and point of purchase and decorations variables. 3.1 External variables and their influence on consumer behavior. External variables refer to all those factors in the surroundings of the business that may influence a consumer’s decision to shop at the supermarket (BATRA & KAZMI 2008, pg89). They include location of the sign leading to the supermarket and its design, availability of ample and secure parking, availability of complementary stores, and general appearance of the area and design of the entrance. On enquiry a majority of the shoppers felt that the sign was not easily visible and that most had to rely on strangers guidance to locate the supermarket (Gorn, 1982, pg130). This they felt exposed them to insecurity. A huge percentage of them also complained about the lack of ample parking. They had to share parking space with customers from the hardware stores which left many of them with the option of having to seek for paid parking elsewhere. They also complained of lack of complementary stores in the vicinity such as restaurants and other shops which meant that they had to drive back into town to access such services. The general appearance of the area was however highly praised by the customers (Gorn, 1982, pg139). They felt that being located in the outskirts of town away from the hustle of town life was advantageous. While they had good words for the appearance of the area they felt the entrance was a huge letdown considering it was an open entrance with no pleasing design and the fact that it was unguarded left them worried.in addition the shoppers felt that the store was not pleasing in design as it was just a simple horizontal structure (Gorn, 1982, pg89). The store’s small size addition to the color was deemed to be unattractive. Majority of the shoppers felt that were this suggestions be implemented they would be permanent shoppers in the supermarket. 3.2 Interior variables and their influences on consumer behavior An interior variable refers to all those factors inside the store which influences consumer loyalty to the store (Baker, Levy & Grewal 1992, pg88). They include availability and shade of lighting, type of background music played, floor type and pattern, color schemes employed on the wall and shelves, scents prevalent in the room, width and design of the aisles, temperature in the supermarket and presence or absence of air-conditioning, general cleanliness of the supermarket.my enquiries revealed the following. Most of the customers appreciated that lighting in the supermarket was sufficient they however felt that using the plain light bulbs made the room less cozy and plain. The music played was given thumbs up by a majority of the shoppers (Baker, Levy & Grewal 1992, pg21). They felt the classical jazz music to be soothing and inviting, a section of the shoppers a majority of who were young shoppers felt the music to be boring and old school suggesting they play modern contemporary music. The use of white tiles in the floors was generally accepted though some felt that a lack of slippery floor signs when they were being cleaned was a letdown. The blue color scheme in the walls was accepted by many to be warm, they felt it made the supermarket cosy and agreed it was a good color choice (Areni & Kim 1994, pg42). The shelves were however mismatched in color. Scents employed on the rooms drew an indifferent response from the shoppers. The width of the aisles was a key problematic area, most felt they were too narrow such that by passing each other was an issue. They accepted this was due to the size of the supermarket but were unhappy about it. Majority of the shoppers felt the temperature was accommodative and presence of air conditioning was a welcomed relief (Areni & Kim 1994, pg85). 3.3 layout and design variables and their influences on consumer purchasing Layout and design variables refer to all those factors relating to the placement, layout and design of the store space. They include space design and size, placement of equipment and workstations, location and size of waiting areas, furniture and dead areas (BATRA & KAZMI 2008, pg89). It was this area of the supermarket that the consumers felt was a huge letdown to the image of the store (Clare & Sally 1999, pg53). A majority of the shoppers felt that the supermarket looked crowded due to a lack of space. They also felt space was designed to favor the products rather than the consumers. The placement of equipment and work station was okay according to a majority however they felt that the equipment and workstations invaded into the customers’ personal space. Some had encounters where they even collide with equipment (Baker, Levy & Grewal 1992, pg71). The small size of the waiting area was a major issue with the customers, although it was expected due to the small size of the store, many customers felt the store was wasting its good location by freezing out some of its potential customers (East 1997, pg65). Customers who came accompanied by their friends could not find a place where they could wait for them. The space for queuing when paying for the goods was also said to be limited and customers had to form meandering queues to accommodate each other. Furniture available were also few and shoppers had to be content with standing (Areni & Kim 1994, pg102). Locating the shopping trolleys proved to be a problem because they were hidden by the back entrance. Dead areas of the supermarket were found to be reasonably well placed. Most of the shoppers offered the conclusion that most of the layout problems were primarily as a result of the supermarket’s small size and therefore suggested expansion of the supermarket would solve most of their problems (Clare & Sally 1999, pg61). 3.4 POP and decorations variables and their influence on consumer behavior. Point of purchase and decorations variables refer to all those factors located at the point of sale in a store which may influence customer’s purchases and loyalty to the store. They include point of purchase (POP) displays, pictures, price displays, wall decorations and permanent product displays (Areni & Kim 1994, pg71). Customer reaction to this section was relatively positive. They felt that most of the point of purchase displays were enticing and were worthy advertisements for the products, pictures displayed were also welcoming and encouraging if not positive. They were also helpful in reminding some of products they had forgotten. Price displays were clear and large enough to be read from far and were also accurately matched to their respective products (Clare & Sally 1999, pg77). Wall decorations also received thumbs up ratings as they were artistic and pleasing to the eyes, most could not help but look at them.it was in the permanent product displays that some negative reactions were received. Some consumers claimed that some of the products on display were however not in stock. A costumer with kids claimed that one of the permanent products a contraceptive was offensive to her kids. CONCLUSION My findings all pointed out to the fact that the store was located in a good area, it had a good layout and point of sale section was positively accepted however its main problem had to do with its size. Due to its size space design was limited and placement of materials also received negative reviews. RECOMMENDATIONS I would recommend an expansion in the size of the store. This would primarily deal with problems to do with its layout and space design. Additional parking space should also be sought, this can be achieved by creating rooftop parking or leasing from a nearby. Waiting areas should be expanded to accommodate as many shoppers as possible. The sign post should also be redesigned to give clear instructions.an interior designer should also be consulted on the best lighting and color schemes plus placement of products in the store.it is clear that if this recommendations are effected consumer loyalty will increase and many shoppers will purchase from the store. REFERENCES Allen, J. and Robertson, D. (2010). Cairngorm John: A life in mountain rescue, Sandstone Press, London. Areni C.S. & Kim, D. (1994) "The Influence of In-Store Lighting on Consumers Examination of Merchandise in a Wine Store". International Journal of Research in Marketing, Vol 11, pp117 125. Baker, J. Levy, M & Grewal D. 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Monopolies in the mountains, Mountain Rescue, Vol. 27, pp. 36-37 http://www.bbc.co.uk/news/10342366 accessed 1/10/10. Macfarlane, R. (2003). Mountains of the Mind: A history of fascination, Granta, London. Mintel (2005). Sports Goods Retailing - UK - September 2005, Mintel, London. Mintel (2006). Sporting activities in the great outdoors – UK - January 2006, Mintel, London. Mountaineering Council of Scotland (2010). Mountain Rescue- Rescue and Self Reliance, Mountaineering Council of Scotland, Perth. Available from: http://www.mcofs.org.uk/mountain-rescue.asp#volunteer accessed on 1/10/10 NOEL, H. (2009). Consumer behaviour. Lausanne, Switzerland, AVA Academia. SOKOLOWSKI, O. (2011). Influences and Attitudes within Consumer Behaviour Process. München, GRIN Verlag GmbH. http://nbn-resolving.de/urn:nbn:de:101:1-20110822226. Read More