Consumer Behavior and
Retail Operations
Dr. Gopal Thapa
Associate Professor
Tribhuvan University

Simple Model of the Purchase
Process
Input (Stimuli) Process (Organism) Output (Responses)
Retail service Person or group making
purchase decision(buyer
characteristics and criteria
Product purchased or not
purchased
Merchandise offer Buying roles as to:
product choice, brand
choice, timing of
purchase, cost, alternative
sought
Other stimuli(marketing,
friends etc.)
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Time Taken to Shop
 Functional shopping
 Complex Shopping
 Leisure shopping
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Functional Shopping
 Time efficient
 Routine habitual action
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Complex Shopping
 Time required
 Pre-planned/researched/ higher risk
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Leisure Shopping
 Time-rich activities
 Emphasis on browsing and serendipity
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Fashion Adoption Theories
 Trickle-down theory
 Trickle-up theory
 Trickle- across theory
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Veblen’s Notion of
Conspicuous Consumption
 Consumption often takes place as a means of
displaying one’s wealth.
 Conspicuous consumption is the acquisition and
displaying of products that are purchased to gain
recognition and respect form others.
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Retail Buying Roles
 Initiator
 Influencer
 Decider
 Buyer
 User
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The Retail Buying Process
 Need arousal
 Recognition of the need
 Level of involvement
 Search for information and identification of
alternatives
 Evaluation of alternatives
 Decision
 Purchase action
 Post purchase feeling/behavior
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Different aspects of Perceived Risk
 Economic risk
 Physical risk
 Psychological risk
 Performance risk
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Influences of the Consumption
Process
 Energizers
 Forces of motivation
 Filters of demand
 Economic factors: Social class and disposable income
 Sociological factors: Reference groups, cultural values
 Psychological factors: Perception of risk, personality, attitudes
 Effecters (May heighten or dampen energizers)
 Promotion, image, information
 Display, type of merchandise, position
 Roles
 Family influence, cultural influences
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Energizers (Motivational Forces)
 Personal motivation
 Social motivation
 Patronage motivation
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Personal motives
 Role playing
 Integral part of life
 Diversion
 Escape from the daily routine, free entertainment
 Self gratification
 Remedy for loneliness or boredom
 Learning about new trends
 Education, new things, ideas
 Physical activities
 Physical exercise
 Sensory stimulation
 Light, color, sounds, scents
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Social Motives
 Social experience outside the home
 Communication with others having similar interest
 Peer group attraction
 Status and authority
 Pleasure of bargaining
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Patronage Motives
 Convenience
 Reputation
 Retail environment
 Service encounter expectation
 Expectation of the merchandise
 Expectation of value
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Demographic Factors
 Slowing birth rate
 Average life expectancy
 The social structure
 Delay of marriage
 Value of education
 Number of households
 Working women
 Population mobility
 Ethnic groups
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Socio-Economic Categories
 Upper middle class
 Middle class
 Lower middle class
 Skilled middle class
 Working class
 Lowest level subsistence
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Role and Family Influence
 Bachelor stage
 Newly married couples
 The full nest I
 The full nest II
 The full nest III
 The empty nest I
 The empty nest II
 The solitary survivor I
 The solitary survivor II
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Psychographics (life style)
 Activities
 Interest
 Opinion
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VALS (Value, attitude and lifestyles)
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Role of children in consumer Behavior
 Children becomes a dominant force in certain
purchase decisions.
 Less time is spent with children as both parents
are working
 Children are taking roles and becoming more self-
reliant
 Companies target them so as to build brand loyalty
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Social influence
 Reference groups
 Primary reference groups
 Secondary reference groups
 Aspirational groups
 Dissociative groups
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Any Queries?
Thank You
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