ASIAN UNIVERSITY Of BANGLADESH

RESEARCH PAPER ON

CONSUMER CHOICE CRITERIA OF RETAIL STORE

Course Title: MARKETING RESEARCH Course Code: B- 4138

Submitted By
Janika Mahmud
ID NO: 200720921 30th Batch, Sec:A

Major in Marketing
Asian University of Bangladesh

ACKNOWLEDGEMENT
Above all, I am very grateful to my ALLAH, and then I want to give my deepest appreciation to my loving father and mother. After that our honorable class teacher, Selim Miah. Their endless love and support in me led to the completion of this research. My sincere thanks extended to Selim Miah, lecturer that I of can Asian overcome University all of of Bangladesh, to for his this valuable teaching. He has guided me very responsively, so obstacles complete research report, though it is my first research report. As it is my first research report, it may have some

mistakes. It will be very kind of you, if you pardon me and considered my mistakes.

Yours faithfully, Janika Mahmud

TABLE OF CONTENT:
1. Acknowledgement....................................................................... 2. Executive Summary.................................................................... 3. Problem Definition...................................................................... 4. Approach to the problem............................................................ 5. Research Design......................................................................... 1 2 2 2

Receiving information....................................................... 3 3

6. Store Image................................................................................

Store location and Site selection....................................... 3 Store layout and planning................................................ Physical appearance........................................................ Retail Promotion Mix....................................................... Store personnel............................................................... Store clientele.................................................................. Customer Services........................................................... Evaluation of Store alternatives....................................... 4 5 5 6 6 7 7 8 9 10

7. Limitations................................................................................. 8. Recommendation....................................................................... 9. References.................................................................................

EXECUTIVE SUMMARY: This report & provides based an on analytical of Consumer and the evaluation market. As criteria of my in current research prospective report situation

choice

Retail store, has found the strong evidence that there are many factors are considered in making a decisions. One is store refers choice to a and anther is store loyalty. that Store the choice particular retail store consumer

chooses to shop at whilst store loyalty refers to devoted consumers that like and consistently visit the same store to make their purchases. Consumer subsequently makes use of a few evaluative criteria when considering a retail store to shop at. Some are:

Store location & store site selection. Store layout & planning. Huge collection. Merchandise. Physical appearances. Retail promotion mix. Store personnel. Store clientele.

Customer service. Space for Parking.

And

actually

notable

criteria

only

applicable

to

those

retailers which are situated in urban areas. Rural areas doesnt bother this.

PROBLEM DEFINITION: The research problem is that what kinds of criteria are being followed by the consumer to choose a retail store to shop.

APPROACH TO THE PROBLEM: Here I made physical evidence or psychological characteristics of the consumer. So that, I have made a Research Questions. And according this Research questions, answers had taken from the consumer in a verbal way.

RESEARCH DESIGN: As my research process depends on Verbal mode, so that I had made Research questions, which are: 1. Do they exhibit store loyalty?

2. Are they heavy users of credit? 3. Are they more conscious of personal appearances as compared to customers of competing stores? 4. Do they combine shopping with eating out? 5. Which types of product they want more? 6. Are the product prices matching their budget? 7. Does the store have easy convenient? * Receiving Information: For getting answers on the basis of research questions, I had choose best three local Retail stores. Which are: 1. Amana Super shop. 2. Family needs. 3. PQS. I have taken some information from secondary data to know how to go on the right way, but prefer a lot in getting information from primary sources. I would like to indicate my all notable criteria just in a one name Store Image.

Store Image:
Store image refers to the overall impression or perception of a store. It is the culmination of all the various store attributes, namely store location & site selection, store layout & planning, merchandize, physical appearances, retail promotion mix, store clientele, store personnel and customer service.

Store location & Site selection: It is often deemed that store location is the prime consideration when consumers consider choosing a store. That is why retailers have to position themselves in such a way that they are accessible to the public, are able to develop a sustainable competitive advantages whilst still making a profit. In that case, Family needs have huge consumers.

Location Issues Large size draws people to area People working/Living in area provided source of customers Protection against whether Security Parking Vehicle accessibility Pedestrian traffic Landlord control Total: Store layout &

Amana + +

Family Needs + +

PQS + _

_ + _ _ + + 5 planning: The

+ + + + _ + 7 layout of

_ + _ _ + + 4 store is

capable of influencing a consumers store choice. For example; a person in wheelchair might want to shop at a store that has straight, wide aisles whilst another person might want a relaxed and cozy environment to shop in. There are various designs are at a retailers disposal, namely racetrack, free-form and grid.

The location merchandize can play a significant part in of consumer being behavior located within in the a store. Certain items a such as bread and milk are not major concerns in items ideal spot within convenience store, as there is always a high demand for them. Other products such as low demand goods need to be located in hot spot in order to sell well. Physical appearances: Good visual communications have been associated as positive influences when consumers consider store choice. This is particularly important to first time consumers, especially when they are learning information to assist them in their shopping. Retail promotion mix: The role of the retail promotion program is to assist consumer through the various stages of the decision-making process. This assistance is made possible with the use of three objectives, namely; Information, persuading and reminding.

Consumer preferences to loyalty programs: 1. Allow members special privileges. 2. Let non-competitive retailers join the program. 3. Award points based on customer purchases. 4. The more money a customer spends the more rewards they receive. 5. Special customer gets special treatment.

6. Member

should

receive

lower

prices

than

non-

members. 7. Have lots of prizes. 8. Let program help local charity. 9. Getting personalized service. 10. Involving customers in store decisions.

Store

Personnel:

Store personnel include any person

with whom the consumer interacts with in carrying out a purchase and is able to influence consumer store choice and loyalty behavior. There is logic of relationships between customer and employee satisfaction:

Customer satisfacti on

Customer loyalty & increased profits

Quality services

Employee Satisfacti on

Store clientele: Store clientele refers to the various types of people that shop at a retailer. Actually the main point is that, people who have positive

associations with the store clientele are likely to be more loyal to the store. It is generally assumed that retailers that are overcrowded or too empty can lead to shoppers avoiding the store. Customer service: Customer services refers to all the activities and programs that retailers commit to in order to enhance the shopping experienced for their customers.
Services offered by convenience retailers: 1. Cheque cashing 2. Acceptable of credit cards. 3. Credit. 4. Home delivery. 5. Facilities for shoppers with special needs. 6. Parking. 7. Rest rooms. 8. Extended store hours. 9. Warranties. 10. Gift wrapping. 11. Special orders.

Evaluation become

of

Store

alternatives: with regards

As to

consumer the

have

more

refined

marketing

arena, it is important for marketers to try and gain some understanding of how consumers collect and review information, which ultimately affects their store choice and loyalty behavior.

Brief Information about stores selling groceries:

Store Characteristics Grocery prices Double coupons Travel time Typical checkout time (min) No. of products, brands & size Fresh produce Fresh fish Atmosphere Cheque cashing Convenience Store 30% [> Ave] No 5 2 2,000.00 No No Unexciting No Supermarket Average Yes 15 5 15,000.00 Yes Yes Exciting Yes Warehouse store 20% [<Ave] NO 25 10 5,000.00 Yes No Unexciting Yes

LIMITATIONS: Though as a new researcher, I had to face lots of limitations, which are: 1. Unavailability of specific data from every sector. 2. Lack of Statistical approach. 3. Cost Constraint. 4. Time Constraint. 5. Confidentiality

RECOMMANDATION:

As the marketing arena is evolving at such a rapid pace, it is critical that consumers are able to keep up with retail offerings tried to and choices. their This is why some consumers by have simplify buying behavior consistently

sticking to a particular retailer, which is appealing to them; hence they become loyal to a store. The layout and planning of a store can influence store choice and loyalty. The services that consumers receive can either be customized or standardize, each having its pros and cons. Consumers absorb whatever information they can in assisting them to successfully evaluate a stores image. As difficult information and preferences are expected from different types of consumers, so too will the end result of which store will be chosen or patronized be different.

Reference:

1. Undergraduate thesis paper, Author: Jason Aughenbaugh. 2. Business, marketing and Export, page:46; Author: Dr. Steve Goodman & Professor Larry lockshin. 3. Factors
store; influencing Author: the consumers choice of retail

Peter

J.

Batt,

Curtin

University

of

Technology, AUSTRALIA. 4. Price response function with and without choice set;
Author: Youngsik kwak, B.B.A and M.B.A; Graduate faculty of Texas tech University.

5. Chapter-4: Store choice and Store loyalty; Author: Levy

and Weitz, 1998:123 and walker et al, 1999:178

6. www.google.com.bd.