SHOPPER DYNAMICS IN RETAIL

1. SHOPPER DYNAMICS IN RETAIL Shopper – the new king in retailing, Shopping process – influences of shoppers’ attitude, perception, personality & life style in retail shopping behaviour, delivering value to retail shoppers, research to understand consumer behaviour, CRM in retail, green retailing, and experiential retailing mdrafeekph.com

2. Shopper Dynamics in Retail 1. Shopper – The New King in Retailing •Traditionally, manufacturers controlled the market. Today, power has shifted to the shopper. •Shoppers have multiple choices, price transparency, global access, and rising expectations. •Retailers (personalization, convenience, value). must focus on shopper-centric strategies Example: Amazon’s customer-first approach → 1-click purchase, easy returns, fast delivery. 2. Shopping Process – Influences on Shopper Behaviour Shopper behaviour is shaped by psychological and personal factors: a. Attitude •A shopper’s product/store. favorable/unfavorable feeling toward a •Example: Some shoppers avoid fast fashion brands due to sustainability concerns. b. Perception •How shoppers interpret retail messages. •Example: A luxury brand like Louis Vuitton is perceived as status- enhancing, even if functionally similar to cheaper bags. c. Personality •Shoppers’ traits affect buying patterns. •Example: Impulsive shoppers → buy at discounts, while analytical shoppers compare prices online. d. Lifestyle mdrafeekph.com

3. •Urban professionals prefer convenience & quick commerce (Blinkit, Swiggy Instamart). •Health-conscious lifestyles → growth of organic food retailing. 3. Delivering Value to Retail Shoppers Retailers create value by: •Functional Value → Product quality, availability, convenience. •Economic Value → Discounts, loyalty programs, cashback. •Emotional Value → Brand experience, store ambience, trust. •Social Value → Trendy, aspirational brands (Nike, Zara). Example: D-Mart (economic value) vs Starbucks (emotional + social value). 4. Research to Understand Consumer Behaviour Retailers use research methods to study shopper dynamics: •Surveys & Interviews → Feedback on shopping experience. •Focus Groups → In-depth opinions. •Observational Research → Studying footfall, traffic patterns, dwell time in stores. •Big Data & Analytics → Online browsing, purchase history, social media sentiment. •AI Tools → Predicting demand, personalizing recommendations. 5. CRM in Retail (Customer Relationship Management) •Definition: Building and maintaining long-term relationships with customers. •Tools: Loyalty programs, personalized offers, CRM software, mobile apps. •Benefits: oHigher customer retention. mdrafeekph.com

4. oIncreased purchase frequency. oBetter cross-selling & upselling. Example: Amazon Prime or Starbucks Rewards → repeat customers with exclusive benefits. 6. Green Retailing •Focus on sustainable and eco-friendly retail practices. •Examples: oUsing biodegradable packaging (IKEA, H&M). oEnergy-efficient stores. oPromoting eco-friendly products (organic, cruelty-free). •Benefits: Enhances brand image, attracts environmentally conscious shoppers. Example: Patanjali promotes natural & eco-friendly products in India. 7. Experiential Retailing •Goes beyond selling products → creates unique shopping experiences. •Elements: oInteractive displays (AR/VR try-ons in fashion & eyewear). oThemed store ambience. oEvents & community engagement. •Example: oNike House of Innovation (NYC) → interactive sports zones. oIKEA → allows customers to experience fully furnished mock homes. mdrafeekph.com

5. Summary •Today, the shopper is the king, influencing all retail decisions. •Shopper personality, and lifestyle. behaviour depends on attitude, perception, •Retailers must deliver functional, economic, emotional, and social value. •Consumer behaviour research & CRM tools help retailers stay customer-centric. •Green retailing focuses on sustainability, while experiential retailing provides memorable shopping experiences. mdrafeekph.com