Consumer Behaviour and Retail Strategies: An Analysis of Influences

This report examines the multifaceted ways retailers influence consumer behavior, focusing on the 4Ps of marketing (Product, Price, Place, and Promotion) and their impact on buyer decisions. It explores various factors such as economic conditions, social influences, and cultural differences that shape consumer choices within retail environments. The report delves into the model of buyer behavior, analyzing how consumers respond to marketing stimuli and make purchasing decisions. It highlights the importance of understanding cultural variations, subcultures, and social classes in tailoring marketing strategies. Furthermore, the report discusses the role of store displays, ambiance, and promotional offers in influencing consumer behavior. The report underscores the necessity for retailers to adapt their strategies to align with consumer needs and preferences, thereby enhancing sales and customer satisfaction. It emphasizes the significance of considering psychological, personal, and social factors in shaping consumer behavior, including the buyer's decision-making process, which is influenced by factors such as store display, ambience, and discounts.

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TABLE OF CONTENTS
How do retailers influence consumer behaviour?......................................................................3
The Model of Buyer Behaviour.............................................................................................3
4P’s of Marketing Influence on Consumer behaviour...........................................................4
The Four Ps Model.................................................................................................................4
Studies on retail stores...........................................................................................................4
Factors influencing consumer behavior.................................................................................5
Buyer's Decision making........................................................................................................5
What are some of the key cultural differences between consumer behaviors?..........................6
Cultural Factors......................................................................................................................6
Total marketing strategy........................................................................................................6
Social class.............................................................................................................................6
References..................................................................................................................................8
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How do retailers influence consumer behaviour?
Consumers purchase various products and services, and multiple factors influence their
buying decisions. The focal point of retailers is mainly to influence consumers' buying
behavior. There are mostly three stimuli that influence consumer behavior. The marketers'
marketing stimuli, collectively known as the 4P's of marketing, affect the decision of the
buyer and their behavior.
The Model of Buyer Behaviour
It is essential to have a clear understanding of how the consumers react and their buying
patterns to fulfill their needs for a more profitable business. The business should not only
offer excellent products and services but should be aware of the factors that influence
consumer behavior to fulfill their needs.
There are several models of consumer behavior; such are economical, psychoanalytical, and
sociological (Kumar 2019). The economic model focuses on satisfying the basic needs of the
consumers within a desirable price range. This psychoanalytical model emphasis consumer
behavior has an influence by society on consumer behavior.
Moreover, the products and services need to be appealing to consumers to encourage them to
buy it. The social environment, competing products, and brand marketing strategies play a
pivotal role in influencing consumer behavior. Hence, it is essential to understand the
sociology and psychological functioning of the consumer groups and not only focus on the
physical attributes of products and services in the retail industry.
Image Attribute: The figure above displays the environmental stimuli, which is the 4P’s of
marketing (Product, Promotion, Place, and price) along with cultural, social, and economic,
and technological, factors that affect the buyer’s responses and consumer behavior in the
retail domain.
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BUYER RESPONSE
Buying attitudes and
preferences
Purchase behaviour
BUYERS BLACK BOX
Buyer’s characteristics
Buyer’s decision process
THE ENVIRONMENT
Marketing stimuli Other
Product Economic
Price Technological
Place Social
Promotion Cultural

4P’s of Marketing Influence on Consumer behaviour
Marketing is a term coined by Neil Borden, and the essential elements which are combined to
promote the brand or products have been refined by Jerome McCarthy used by the marketing
companies, which are critical to building the right marketing strategy to influence consumer
behaviour (Stankevich, 2017).
The Four Ps Model
Product: The products should be attractive in terms of packaging, ease of use, features, high-
quality and innovative design. These features attract consumers to the product.
Pricing - is a critical part of influencing consumer behavior. If the product is under-priced,
the consumers may question its quality, and if it is too high priced, consumers may not buy.
Hence, some pricing strategies like bundle pricing, discounts, and psychological pricing
needs to be adopted.
Promotion- Promotion focuses on addressing consumers through sales strategies,
advertisements, and public relations to attract and influence consumer behavior.
Studies on retail stores
Many influencing factors affect consumer behavior of shoppers in retail stores (Badre 2020).
Both economic and non-economic factors influence it. The economic factors are offering
products at discounted prices, low, competitive pricing, and combo offers. The convenience
and availability of a wide variety for selection of products also positively influence consumer
behavior in a retail store.
Retail stores can also influence consumer behavior through its location and facilities. For
instance, if there are parking facilities and the retail stores are located in the central areas, it
tends to have a positive impact on the shoppers (Pranjal and Sarkar 2019)
Gender differences also play a pivotal role in consumer behavior. The men look for
satisfaction and comfort while they buy a product, whereas women look for satisfaction,
comfort, and aesthetic beauty. Likewise, both men and women prefer low, competitive
pricing with high-quality.
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Shelf-display of the products in retail stores also influence consumer behavior. Disorganized
shelves and those who have less stock tend to put off the consumers, whereas the well-
organized shelves, and displays products well to consumers tend to increment sales.
Factors influencing consumer behavior
Four significant factors influence consumer behavior: cultural, social, cultural, and
psychological (Thangasamy and Patika, 2014).
These factors are essential to consider in retail stores to identify interested buyers and shape
their products and appeals to serve consumer needs better.
Culture forms primary determinant of the behavior of consumers. Subcultures refer to the
cultures within cultures which have distinct lifestyles and values. Retail stores need to ensure
they comply with the cultural needs of the consumers (Mooij 2019). For instance, McDonald
designs its products as per the cultural requirements of particular geographic needs.
Social factors has an influence consumer's behavior. The social groups which exert influence
are known as reference groups. These are the determinants which form the consumer's
attitude and behavior. These reference groups include friends, family, professional associates,
and social networks. They strongly affect consumer's choices of brands and products. For
instance, the choices in McDonald's for burgers are usually influenced by children in the
family. Hence they try to advertise the children and make marketing strategies to target
children.
Personal Factors also affect consumer behavior which includes lifestyle, economic status,
personality, age, and occupation. Psychological factors also affect consumer behavior. These
include perception, learning, motivation, and attitudes & beliefs. For instance, McDonald's
tries to create more delicious food spread to motivate consumers like a range of chicken
burgers, hamburgers, wraps, fries breakfast items, soft drinks, happy meal combos, etc.
Customers have specific beliefs and attitudes towards certain products, which makes up a
brand image and affects consumer behavior. Hence, retail stores marketers can change the
beliefs and attitudes of consumers by launching special advertising campaigns and quality
products. McDonald's for instance, provides excellent services, and its employees gives a
good impression to consumers to get back to them as returning consumers.
Buyer's Decision making
In the retail market, many factors can affect the decisions of the consumers. These are as
follows (Paul., Sankaranarayanan and Mekoth 2016):
Store display and product presetation
The first essential factor is that retail stores must have an attractive and creative display to
encourage consumers to buy.
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Ambiance of store
The retail stores should be attractive to new consumers and should be well-ventilated,
brightly lit, and attractive to the new consumer. They should enjoy buying and shopping in
the store.
Bundling price or discounts
Products can be sold as a bundle in discounted prices, or combo offers can be attractive to
influence consumer behavior (Harris 2016). Moreover, promotional schemes encourage
consumers to buy more products.
What are some of the key cultural differences between consumer behaviors?
Cultural Factors
Cultural factors are the fundamental determinants of the person's wants and behavior.
Cultural factors exerts heavy influence on consumer behavior (Tyagi 2018). Cultural factors
have a significant impact on consumers' behavior as the growing individual acquires sets of
values, perception, behavior, and perception through their family's other vital institutions.
Marketers are always trying to identify the cultural shifts which lead to new products to
satisfy consumers need. For instance, a significant trend towards fitness and health industry
has created a huge market for this domain. It has increased demand for organic food, exercise
clothes, and fitness equipments.
Subcultures
Many brands also target specific subcultures to design and market products and services.
Examples of three such essential subcultures include Hispanic Americans, Asian Americans,
and African Americans (Gbadamosi 2017). Every culture has a small subculture or group of
people who have a shared value system based on a simple lifestyle. The subcultures include
religions, racial groups, geographical nations, and nationalities.
Total marketing strategy
Beyond targeting specific consumers, such as African Americans, Hispanics, and Asian
Americans, the marketers also tend to tailor efforts through embracing a total market strategy.
It embraces integration of cross-cultural and ethnic themes in the marketing stream.
Many marketers have gamed immensely from ethnic consumer segments. For instance,
McDonald's takes cues from these segments for developing their menus with the hope to
encourage consumers to purchase drinks, smoothies, wraps, and hamburgers.
Social class
All societies have a specific social structure. The social classes have members who have
similar values and views. Social scientists have clearly defined seven social types.
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Upper- Upper
Upper- upper class refers to the social elites who acquire immense wealth and own the
luxurious around them. They form a small segment of society.
Lower upper
These are people who attain high incomes through the medium of business profits and high
salaries.
Upper middle
This class of society does not own excess wealth but has a decent income. They believe in
quality education and buy quality products and services.
Middle class
The middle-class segment are have salaries or earn moderately. They often purchase products
to keep up with the trends.
Working-class
Working-class refers to members who depend highly on others for economic support and
maintain a low standard of living. They do not thrive much on luxury.
Upper lower
Upper Lowers are have a low standard of living then upper lower but better than lower
lowers. It is just above the line of poverty.
Lower Lowers
Lower Lowers fall on the line of poverty and can afford to barely spend except for essential
goods.
Marketers are interested in social classes as they show the distinct product and brand
preferences in areas like clothing, furnishings, leisure activities and services like automobiles
and financial services (Shavitt., Jiang and Cho 2016).
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References
Badre, S.B. 2020. Study of Factors Affecting online Shopping Behaviours of Consumers. Our
Heritage, Vol. 68, Special Issue 9. International Conference on E-Business, E-Management,
E-Education and E-Governance.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing
and advertising. SAGE Publications Limited.
Harris, F. (2016). Sustainable clothing, challenges, barriers and interventions for encouraging
more sustainable consumer behaviour. International Journal of Consumer Studies, Vol. 40,
309-318.
Kumar, A., 2019. Factors Influencing Consumer Behaviour.
Paul, J., Sankaranarayanan, K.G. and Mekoth, N., 2016. Consumer satisfaction in retail
stores: Theory and implications. International Journal of Consumer Studies, 40(6), pp.635-
642.
Pranjal, P. and Sarkar, S., 2019. Qualitative Consumer & Marketing Research. e-Journal of
Social & Behavioural Research in Business, 10(1), pp.78-81.
Shavitt, S., Jiang, D. and Cho, H., 2016. Stratification and segmentation: Social class in
consumer behavior. Journal of Consumer Psychology, 26(4), pp.583-593.
Stankevich, A. (2017). Explaining the Consumer Decision-Making Process: Critical
Literature Review. JOURNAL OF INTERNATIONAL BUSINESS RESEARCH AND
MARKETING, 2(6), 7-14. doi: 10.18775/jibrm.1849-8558.2015.26.3001
Thangasamy, E. & Patika, G. 2014. Factors influencing consumer buying behaviour: a
case study. Global Journal of Management and Business Research: E Marketing. Volume 14,
issue 5, version
Tyagi, A., 2018. A Study on Factors Affecting Consumer Buying Behaviour. International
Journal of Business & Engineering Research, 11.
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