Why.we.Buy+Chap+1&2

8/8/2019 Why.we.Buy+Chap+1&2

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Why We Buy the science of shopping

Consumer Behavior

Members:

Mustafa Khalid (9711)Obaid Saleem (9558)

Muhammad Arif (9531)Sana Fatima (5583)



The AuthorPaco Underhill

y Founder of Envirosell, a behavioral research andconsultancy firm

y An expert on consumer trends & Retail management

y From buying behavior to consumerism in the modern world; Paco has presented ground breakingobservations in his books and speeches

y Other books:

y Call of the Mall: The Geography of Shopping

y W

hat W

omen W

ant: The Global Market TurnsFemale Friendly



The BookWe We Buy

y Underhill describes himself as an urban geographer and retailanthropologist

y Fundamental research methodology is to track customers

y Unobtrusively observe consumers with:y Time spend in each area of the store

y what they touch and look at

y what they buy

y how much they spend

y After 20 years of research and huge database of shopper behaviorThescience of shopping was invented



C hapter 1A Science Is Born



Anthropology` Anthropologystudy of humanity; all aspects of society and culture.

` Study of Modern shoppers in situShoppers interaction with retailenvironment

` Study the environment for the consumer from the farthest reach of parking lotto the store itself including:

Shelf Counter Table Display of merchandise Banners Entrance and exits

Cashier Teller

How human interact with these things



AnthropologyThe Begining of

The Science of shoppingy Anthropology does not cover the anatomical mechanics and

behavioral psychology of the consumer.

y W here they go and dont go

y By what path they go therey W hat they see and failed to see

y W hat they read and decline to read

y How they deal with the objects that come upon.

W hat human beings do in the store? How do They Shop?



Need for the Science of Shopping

y Anthropology is not paying attention in collating, digesting,tabulating and cross referencing every little bit of datato theextreme narrow.

For example:

y How many people enter the store in morning?

This sould be broken down by:

y Gender

y Age

y Socio cultural factors



If Anthropology had been paying attention

on all these aspects then we wouldnt havehad to try to invent the

Science Of Shopping



Science of Shopping

y Trackers

y Research Tools/ Hardware

y Track Sheet

y Job Captain



Trackersy Field researchers.

How they W ork

y A tracker begins by wandering near a stores entrance.

y Trackers stick with the shopper as long as he/she is in storeand record virtually everything an individual does.

y Trackers work in a team if the store is large



Research Tools/Hardwarey Handheld computers

y Cameras

y Laptops

y Tripods

y Tapes

y Mount

y Lenses

y Other Camera Accessories

y Hard shell cases

y Track sheet (a low tech piece of paper)



Track Sheet Low tech piece of paper

It contains

Map about the store or premises Shopper details like, sex, age & other variables.

W hat he/she does in the store

Tracker uses the system of shorthand notations.

Over the time more variables have been evolved. Currently up to 40 variables are monitored.



Job Captain

y Spends a day cleaning the forms.

y Provides data to be entered into the database.

y Mainly SPSS and MS Excel are used for data analysis



Butt brush effecty Shoppers dont like being brushed or touched from behind

y They even move away from the product to avoid it.

y Example: Neck wear issue

y Therefore proper placement of product is required.



Live Examplesy W aiting time at cash counter

y Complicated transactions should be distinguished and separatecounters should be there.

y Display of new releases hidden behind the crowd at cashier.

y Aspirin placed near Beverages section. Elders get irritated and walkaway empty handed. (Modified version of Butt-brush effect)



The obvious isn¶t always apparent



Changing Trends

y Generations ago, only big brand goods wereadvertised.

y Today, we are dangerously over retailed.

y Too much is for sale through too many outlets.



Changing Trends

y Early generations stuck to the brands that they chose early in life.

y Today it is difficult to convince consumer.

y The store itself is important medium fortransmitting messages.





C hapter 2What Retailers Dont Know



Retailer-The practitionery Buyer-Supplier relationships

are one of the most importantelements that influences thepurchasing process.

y Establishing & managingeffective relationships atevery link in the supply chainis becoming the pre-requisiteof Business Success

BUISNESS

SUCCESS

BUYERSUPPLIER

RELATION

SHIP

PURCHASI-

NG

PROCESS



So..how much doesnt the RETAILER already

know??

The Concept of Conversion Rate

y Shoppers somehow need to

be transformed into buyers.HO W?

y Change in:

1. Store layout

2. Display

3. Merchandising & Staffing



Amount Of time a shopper spends

y Direct Relationship with how much a customer may buy.

y In some stores buyers spend three or four times as muchtimes as non buyers.

Advice to Retailers:

y Get shoppers to shop

y longer.!!!



The Interception Rate

y Implies the percentage of customers who have some

contact with the store employees.y The more shopper-employee

contacts take place,greater the average

sales.

Success Secret:

y Talking with an employee draws a

y customer closer!



The W aiting Timey Most important factor in customer satisfaction

y Nobody likes to wait-Be it some busy executive or a normalhousewife

y W hen made to wait for too long,the impression of overall service

plunges.

SOLU

TI

ON:y W ork on shortening the wait



And Most Importantly

KNO W YOUR CUSTOMERS..!!!

Why.we.Buy+Chap+1&2

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