Essays on Consumer Behaviour of the Retail Industry Case Study

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The paper "Consumer Behaviour of the Retail Industry" is a good example of a marketing case study. There has been a steady growth in online shopping behavior, in recent years. More and more consumers have started preferring online shopping as a great platform due to the flexibility and time-saving aspect. This study of ‘ Consumer Behavior’ helps to ascertain the consumer decision process, and the various influences made by the internal and external factors in the dynamic marketing environment. Essentially, a successful online retail store is not only a fine looking retailer’ s website with interesting and dynamic features.

Along with disseminating information, the online retail store is also about creating a sustainable relationship with consumers and generating money. Retailers usually try to adopt online shopping methods without pondering of a sound business model. In this regard, they produce web stores that support the business’ s brand name without taking into consideration consumer needs and expectations. A design that is user or consumer-centred is very critical. In addition, understanding the consumer’ s shopping behavior, as well as their needs and wants is essential. Meeting the firm’ s promises offers consumers a reason to return in the future, and meeting their satisfaction levels offers them a reason for loyalty (Haubl & Trifts 2000, p.

7). Therefore, it is essential for the retailer’ s website to communicate how much the store values its consumers. More importantly, consumers’ expectations and needs are not similar for all customers. This means that online retailers should take into consideration important factors like gender, age, culture and experience. In order to increase online shoppers, retailers should utilize significant time and financial resources to design, define, test, develop, maintain and implement an effective webstore.

Essentially, the key drivers of online retail shopping among consumers include greater choice and variety of goods, consumers seeking greater value of money, rapidly increase usage of tablet and Smartphone devices, increasing levels of digital awareness and sophistication across all age groups, as well as increasing use of social media to drive product and brand awareness (Hou & Yu 2009, p. 2847). The industry overview The industry of focus in this report is the retail industry. The retail stores differ from other industrial firms in that they hardly produce tangible products.

The industry players purchase merchandise from producers in bulk quantities for retailing to customers at a profit. Generally, the retail industry is increasingly getting mature and highly competitive. Most retailers have operated their businesses for the larger part of the century, and, therefore, they have had the time of fully covering the targeted markets. In order to succeed, the retail stores must offer desirable products, while controlling costs and managing inventory. In most economies, consumer spending, on average, accounts for almost two-thirds of the global domestic product (GDP) (Zhou 2007, p.

45). Thus, the trends of GPD normally indicate the health and growth of the retail sector. What is more, measures of consumer confidence assist in gauging consumer spending or saving rates, which consequently reflect the retailers’ performance. In hard economic times, consumers usually limit their outlays to required day-to-day items, which is mainly due to their lack of sufficient disposable income. In contrast, consumers are more ready to make more purchases during strong economic periods.

References

List of References

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