4.1    What We Mean by Consumer
Behaviour

The term 'consumer
behaviour' is perhaps rather confusing
for most people, but it is actually
much easier to understand than you are perhaps aware.

This term directly
relates to the way in which the consumer, and by this we do of course mean customer,
selects products, shops for them, uses them, purchases them, and even disposes of them later on. Now, as you can see, it tends to cover every aspect of the shopping experience and that is why it is important
that you, as the retail manager, understand
each and every part of it, to allow you to take advantage of the consumer's
behaviour in order to further your store.

Consumer behaviour is something that is actually almost a science of its own because we are looking at the way in which customers
look at products and how they make the decision as to what they are going to buy. Indeed, it is argued that every single marketing
decision  made  is 
based  on  some attempt at understanding consumer
behaviour and trying to tailor those things to meet their needs.

Basically, we are trying to state that it is important for any retail outlet to try to modify and interpret the behaviour of their customers
from the moment that they walk in the door. There is a need for you to remember
that it is actually quite rare for a customer to walk into a store and not have some idea as to why they are there in the first place. They have a reason and a plan for what they are going to do whilst they are there and understanding this behaviour means that your store can be set up to capture those feelings and to make it more likely that the customer
will then see your store as being suitable for their shopping needs.

To make more sense of the concept of consumer
behaviour, it makes sense for us to use an example to really put our points across.

In this example, we will say that you are the retail manager of a small supermarket.

Now, we are not going into too much detail of the psychology that goes behind the layout and design of a supermarket, as that is a subject all on its own, but it is sufficient
to say that from the moment a customer walks through the door they are being subjected to all kinds of influences
that are tied to the way in which most people shop.

Generally speaking, it is known that we behave in a certain manner when shopping for groceries, although
it is not an exact science and there are certainly a number of individuals that go against
the grain. However,
in most instances we know what we are going in for and we can often be quite set on those products.

The key is in the way that we view products on a shelf. It is known that the bestsellers are going to be on the shelves sited more closely around eye level, rather than down at the bottom. Studies of consumer behaviour
have revealed that we are rather reluctant
to bend down to get something from the bottom shelf unless we have a specific
need for it and that is why companies will battle one another for those prime positions in the middle.

Another interesting point that comes from the study of consumer behaviour
is that it is accepted
that we are drawn by displays and signs that stick out from the shelves. By nature we are curious people and we are drawn to those signs and it is understood that we are often tempted
into a special offer even though we may not need the items at the time in question.

The most important part is that these displays are placed in key locations, which is why they are often on the end of aisles in a supermarket, or on displays
that are constructed so that you simply cannot miss them.

This is not just the supermarket taking full advantage
of the space that it has available.
Instead, it is more to do with the fact that they completely understand
the way that shoppers operate and are placing key products in key locations
to tempt them to spend more than they intended.

We can even go one step further with a supermarket example and talk about something
known as a loss leader. What we mean by this is that the supermarkets will make a loss on certain products,
sugar for example,
because they understand that keeping prices of certain
products as  low  as possible
will draw people into their store. Once they get them in the door, it is then a case of trying to get them to buy other products
where they make their profit; you cannot do any of this if you cannot get customers in the door in the first place.

Consumer behaviour is directly related to the way in which people shop and the way in which the retail environment understands their actions. This information is extremely important
because, as the manager of a retail environment, you can ensure that your store is primed to take advantage
of consumer behaviour
and that is what we will look at next.

How to interpret Consumer Behaviour for your Own Advantage

Now that we have explained what we mean by consumer behaviour, we move on to look at the way in which you can interpret
this information, to use it to your own advantage.

The reason why this is important is obvious; understanding the way consumers
shop and purchase products allows you to tailor certain
aspects of your store to enhance their shopping experience and make them more likely to spend more than they intended.
Of course, this is something
that will be beneficial to you since it will have a direct impact on hitting your targets.

However, it is all fair and well understanding what it is going to be used for, but it is another thing entirely trying to put it into action.

To explain
how to use this information to your advantage
we will use an example
and we will remain with the supermarket idea at this point.

The first thing to consider
with consumer behaviour
is the fact that in a supermarket, people expect to be able to breeze through the aisles and to have space to do so. They want the store to be clearly signposted so they know the rough
categories of products that are in a certain area. They do not want to go up and down each aisle trying
to find items, as this is extremely irritating and there is more chance of them just grabbing a few things and getting out.

So, the first thing that you as the manager
needs to do is to make sure that everything is clearly signposted and that the signs do indeed reflect what is in the aisle. We can apply the same concept to other retail outlets whereby
it has to be made clear to the consumer
that a certain area of the store is for a certain type of product. In a pet store, it has to be clear where products for dogs are kept and a separate sign showing products
for cats, and so on.

The
reason for this is because
studies of consumer behaviour
have shown that people have a low tolerance when it comes to wanting to find something.

They dislike things to be moved around as people do not have the time or patience to hunt for something new. However, at the same time, you must also make sure that your staff are well trained and know where everything can be found in order to reduce the time that is spent trying to locate a product.
There is nothing more frustrating than hunting for something and then discovering that it is either not in stock or it is not for sale in that store. This will just force the customer to go elsewhere.

Next, you have to make sure that the merchandising of the store is perfect
at all times. This is why you will often see people working in a supermarket that appear to just be tidying up and straightening products and labels. People want to know what a product is within an instant and to find the price easily. They do not have the time to waste picking up something
and then wondering how much they are spending.

These are two main areas that you have to focus on as the retail manager. People want things to be tidy and easy to find. However, we have also mentioned the idea of products on special offer and the way in which customers
are quick to react to these things.

As the manager, it is your
responsibility that all displays and products on offer are in prime position for those impulse buys. It is known that
impulsiveness accounts for a substantial part of the sales in most retail outlets,
so you have to make sure that you are perfectly positioned to deal with that.

In other words, to cope with consumer
behaviour you need to get to grips with what consumers want, how they search for something, the things that irritate them, and what you can do to counteract those irritations. As it is such an important part we will look at that next.

FACt

More than a third of consumer spending
goes through shops

Source: retailappointment.co.uk

4.2    How to Deal with Issues Related to the Behaviour

At this point, it may sound as if it is all plain sailing when it comes to dealing with consumer behaviour
and being able to understand it, but it is not all as straightforward as it seems.

Instead, there will be times where there are issues that arise that require you as the manager to take certain actions in order to enhance the shopping
experience for your customers.

Now, interpreting consumer
behaviour will lead you to make conclusions as to how to organise
your store or how you train your staff so that they can be more helpful to customers,
but perhaps even more important
is knowing how to cope with any issues and how to stop them from occurring
in the first place.

In most instances, the key things that will irritate the consumer and disrupt their normal behaviour
are as shown below. By being made aware of these issues it gives you the chance to develop the methods in which you can counteract
them.

Unable to find products

This one is easy to resolve in that you need to make sure that certain
types of products
are in clearly defined areas. Do not mix up different products
as this leads to confusion
and confusion makes an individual less likely to buy.

Poor organisation

If a store is poorly organised and is coming across as being in disarray, then this will make customers
feel as if they should go elsewhere. We tend to enter a store with at least a rough idea of what we are looking for and anything that goes against that thought in our mind is not going to be welcomed. A store that is organised
is a more pleasant shopping
experience for the customer and your tills will be ringing as a result.

Poor labelling

Customers tend to prefer to be able to make their decision
about a product within seconds of seeing it. However,
in order to do this, they need to be able to read the label, see the size of the item of clothing or shoes, or any other information that is key to them making their overall decision.
As the manager, it is important that you are aware of this and to have the store checked on a regular basis to prevent this from becoming an issue.

Products not in stock

This is completely
unacceptable for most stores as you should really have all products in stock, as much as you can. As the manager,
you need to keep on top of the reordering
and your supply line, as this should not be too difficult.
However, this is something that can go wrong and at that point you need to have a plan in place that means you can pacify the customer
as much as possible.

Now, we are not saying that these are all of the issues that could crop up when dealing with consumer behaviour, but it is important to remember that the retail environment often involves leaving
the customer to his or her own devices as much as possible. Keeping that in mind, it makes sense that your main concern has to be making sure that the products
are available for them to buy. Furthermore, pushing special offers and deals via displays
will be important for your bottom line and that is where the layout of your store is going to come in very useful indeed.

4.3    The Difference that Understanding Consumer
Behaviour Makes to your Store

Finally, we will look at the difference that understanding all of this information regarding
the behaviour of consumers makes to your store.

Now, this is not just speculation as to the difference that it makes because companies
have spent millions
trying to get to grips with what is going through the mind of consumers. That is why they will look at the layout of shops, product designers
will think about colours and how to make their product stand out. Manufacturers will also seek to get better positions
on shelves if possible and are willing to spend money as they know that certain positions result in better sales.

However, that is mainly to do with aspects of running a store that are beyond what you need to do as a retail manager. For you, the most important
thing is to be able to provide the customer
with the best shopping experience that you can without stressing
them out or making life difficult.

At the same time, there is also the need for you and your staff to be able to communicate effectively with the customer when required. To do so can make a huge difference when it comes to helping them with any problems
that they may be having.

By getting to grips with consumer behaviour
and being aware of what drives people to spend money within
your particular retail environment, means you can offer a better quality experience than the customer
was perhaps expecting. However, there is a real need for you to stay on top of this at all times simply because needs and wants are changing constantly
and failing to keep up with trends in shopping
and behaviour will mean that you can become outdated.

MODULE SUMMARY

In this module we have focused on aspects of understanding consumer behaviour and the impact that this has on your retail outlet. As you can see, it is important
that you think about more than just how tidy your store looks because
there are so many points connected to the way in which people shop that can be used to your advantage and boost your turnover.

Consumer behaviour and getting to grips with it will not only make you a better manager in general, but at the same time it provides you with better insight into what is going on in the mind of the customer. By taking the information that you are able to glean from their habits, it allows you to shape your retail outlet to maximise the sales you can achieve from your customers.

Remember, customers can always go elsewhere if they are not happy with what happens in your store, so keeping
on top of your game is essential
if you are hoping to turn your store into the best it can possibly be.