Buying Behavior

RETAIL AUDITInes Hackbarth, Michael Stach, Galina Vasilyeva

Jan. 6th, 2014

Hypothesis H14 Demographics affect planned expenditure level. • Income: High income - higher planned expenditures

• Gender: Females – higher planned expenditure

• Education: High educated mall visitors – lower expenditures

Picture source: http://static6.depositphotos.comHypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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Gender, income and planned expenditures

Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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• Store type: Textile, food, furniture etc.• Time/Day: Friday, November 29th, 2 pm• Size: 100 m²• Target group: Middle aged, middle income • Salespeople: A couple per store• Special promotion: Christmas, discounts• Pathway: Cluttered• Keeping customer in store: Confusing structure• Consultants‘ opinion: Layout

Interior designStore front

Picture source: /www.strauss-innovation.deHypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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• Store type: Furniture• Time/Day: Wednesday, November 27th, 5 pm• Size: 40.000 m²• Target group: Age 50+, both gender, high income• Salespeople: Oversaturated, active approach • Special promotion: Christmas, car raffle, sales• Pathway: Wide; furniture settings• Keeping customer in store: Restaurants, play area• Consultants‘ opinion: Sensory experience

Store interior

Picture source: /www.moebel-kraft.de/standorte/berlinHypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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• Store type: Furniture• Time/Day: Wednesday, Nov. 27th, 6 pm• Size 30.000 m²• Target group: Young families, students, price

sensitive customers, both genders• Salespeople: Don‘t approach actively• Special promotion: Loyalty program „IKEA family“• Pathway: Fixed pathway throughout the store• Keeping customer in store: Food area, swedish supermarket• Consultants‘ opinion: Sensory experience

LayoutStore interior

Picture source:: www.tech-lounge.de Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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• Store type: Book• Time/Day: Thursday, Nov. 27th, 2 pm• Size: 250 m²• Target group: All ages, more female than male, low-middle income• Salespeople: Don‘t approach actively• Special promotion: Christmas, Ebook Reader, Bestseller• Pathway: No fixed pathway • Keeping customer in store: Tables with different merchandise,

gift ideas• Consultants‘ opinion: Layout

Sensory experience Store‘s interior

Picture source:: /www.douglas-holding.deHypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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• Store type: Electronic store• Time/Day: Thursday, Nov. 28th, 4 pm• Size: 2.000m²• Target group: Tech-savvy consumers; mostly male• Salespeople: Approach customer; attentive and patient• Special promotion: PS4 promotion, special product stands,

0 % interest for payment by installments• Pathway: Entertainment products at the end of the store• Keeping customer in store: „Rummage tables“ with DVDs, CDs• Consultants‘ opinion: Sensory experience

Store‘s interiorLayout

Picture source: www.kreisbote.deHypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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A young couple28 yearsAlliedLow-middle income„As we are getting a baby soon, we moved to a new appartment and need to buy new furniture like a TV shelf.“

Customer Profile

Who?AgeRelationship StateIncomeMission

• Moving in togetherNeed Recognition

• At the Ikea storeSearch Information

• Relevant attributesEvaluation of Alternatives

• Quick and easyPurchase

• SatisfiedPost-Purchase

Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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Key Attributes

End Means

Attribute

Functional Consequence

Terminal Value Harmonic room

interior

Fits to the rest of the furntiture

Style

TV shelf

More money for the baby

Cost-saving

Price

TV shelf

Esteem

Appear modern and stylish

Design

TV shelf

Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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Customer Profile

Who?AgeRelationship StateIncomeMission

Business man55 yearsRecently divorcedHigh income„As I just divorced, I have to move to my new appartment ASAP and thus need a new sofa for my living room.“

Need Recognition •New flat after divorce

Search Information •Internet

Evaluation of Alternatives

•Relevant attributes

Purchase •Order process

Post-Purchase •Satisfied

Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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Key Attributes

End Means

Attribute

Functional Consequence

Terminal Value

Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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Hypothesis based on Database1. Competers are more likely using less appropriated tactics in negotiations

whereas avoiders are unlikely to use those.

2. The more frequently positive negotiation behaviors are shown, the better the negotiation outcome.

3. Age affects negotiation style.

Hypothesis I – Retail Audit – Customer Profiles – Hypothesis II

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Thank you for your attention