Topic
OUTLET SELECTION & PURCHASE
Presented by
• Mohsan Ali
• Arslan Saleem
• Mba-3rd
Introduction
As the num of products and brands are increasing in the
market, so are the retail outlets and it becomes very
confusing for the consumer to choose the outlets .The
selecting of outlets also involves almost the same
process as selecting a brand. The retail outlet relates
to a service or a product which caters to the
consumer. The retail trade occurs from the stores but
it also occur from catalogues, direct mail via print
media television. Retailing is also done in weekly
markets which are put up in different areas of a city
on different days. It is also done from consumer to
consumer, by means of various media.
Introduction
• It has become very challenging and exciting both for
consumer and marketer.
• The consumer may give first preference to store or the
product or, he may give equal importance to both.
• Sometimes one prefer a store first, where he can get
friendly and logical advise to buy a product, and prefers
to buy a product/brand of second priority.
• If he is assured of proper service and proper guidance
rather than buying a product of his choice on first priority
and missing out on other important aspects of purchase.
Purchase process or decision making process
• We shall first discuss the purchase process this decision
making process consist of 5 steps.
• First of all the decision is made to solve a problem of any
kind this may be the problem of creating a cool
atmosphere in your home .
• For this information search is carried out to find how the
cool atmosphere can be provided that is e.g. by an air
conditioner or by a water cooler or by a fan. this leads to
evaluation of alternatives, and a cost benefit analysis is
made to decide which product or brand image is suitable.
Purchase process or decision making process
Outlet selection
• The selection of retail outlet therefore can be
made considering a number of factors.
• Outlet image
• Advertising
• location & size
• Consumer characteristics
Outlet image
• Merchandise service - quality
selection,price,place,sales,credit,deleivery
• Physical facilities – store layout, shopping
ease, attractiveness.
• Promotion – advertising, P.O.P displays.
• Store atmosphere – fun, excitement, comfort.
• Institutional – store reputation.
Advertising
• Retailers use price advertising and attract people to
stores. People usually come to buy the advertised
items and also end up buying other products. Sales
of additional items is known as spillover sales. Price
is also an important factor for purchasing the
product and.
• Consumers perceive price advertisement as
reduction in price. Many advertisers project the
regular price, as well as the offered price, showing a
discount or a substantial savings.
Outlet Location and Size
• The consumers tend to buy from the store
that is closest to them.
• larger stores are preferred to smaller stores.
• Travel time to reach the store is an important
• factor.
• Consumers like ample space to move around
and want to see the displays and the products
closely.
Consumer Characteristics
• Different consumers have different reasons
and different desires for shopping. Some buy
for convenience others for an image, some
others for fulfilling obligations.
• Perceived Risk
• Shopping Orientation
Consumer Characteristics
Perceived Risk
• Financial risk → paying more.
• Social risk → does not meet the approval of
social group.
• Psychological risk → loss of self-esteem.
Others buying at cheaper rates.
• Performance risk → not performing.
• Physical risk → bodily harm, faulty brakes
adulterated food etc.
Consumer Characteristics
Shopping Orientation
• Reasons for shopping
• Acquiring a product
• social interactions
• Knowledge about product
By shopping orientation we mean, what
emphasis is put on various activities or the
reasons we have for shopping.
Categories of Shoppers
• inactive shoppers
• do not enjoy shopping, not concerned much with price,
product selection, etc.
• restricted lifestyle.
• Active shoppers
• enjoy shopping, like to find out about various products,
• balance price with quality, knowledgable
• Service shoppers
• give importance to service by the shopkeepers. Both in-
store and after-sales service is their main consideration.
Categories of Shoppers
• Traditional shoppers
• active shoppers and engage in outdoor activities
• knowledgable and not price sensitive.
• Price shoppers
• They are price conscious.
• search and find the lowest price available.
• Dedicated fringe shoppers
• little interest in television and radio.
• Not store loyal. not heavy socialisers and do things by themselves.
• Transitional shoppers
• experimental and keep changing stores and products.
• do not go for low price
• and buy products that interest them most.
Outlet selection
Influences that alter brand choices
• Point of Purchase Displays
They become very effective in case of snacks, foods, etc.
Price reductions
Price reductions can be in the form of discounts, coupons, gifts.
Store layout
Good lighting
Prominently displayed products
Store atmosphere
• Temperature
• Music
• Odor
• Colors
• Decor style Etc
Outlet selection
Influences that alter brand choices
• Stock out
If a product or a brand is out of stock, i.e., not
available at an appropriate time, the
consumer gets tempted to switch brands or
delay the purchase.
• Sales personnel
Educates and enlightens the prospective
customer.
Online shopping
reasons for online shopping
• Convenience
• Price was right
• Past experience with company
• Home delivery
• No time to go to a store
Online shopping
barriers to online shopping
• Credit card security concerns
• Lack of touch
• Delivery cost
• Want to research online and buy offline
• Bad buying experience of others
• Lack of internet
Online shopping
characteristics of online shoppers
• Higher income
• Higher education
• Younger generations
• Women
Purchase
• This is the final step in a transaction. Unless
the purchase is made, all efforts of layout,
atmosphere , effort of the salesman are a
waste.
Thank you
Special thanks to sir Babar
Bukhari
