Factors Affecting Buying Decision of the Customers at the Store

There are several factors which affect the buying decision of the customers. Let us go through them one by one:

1. Store Display and Presentation of Products

   The store display plays an important role in influencing the buying decision of the customers. It is the display of the store which attracts passing individuals into the store. The store must have an attractive display to entice the customers. Shopping may be the last priority for an individual but a creative display encourages him to spend on shopping.

   • A retailer must intelligently display the latest trends on mannequins to prompt the customers to buy the same.
   • Make sure the products are kept on their respective racks. The merchandise should not fall off the shelves.
   • Since most of us are right handed; we tend to go towards the right side of the store, the moment we step inside. The retailer must thus display expensive and unique merchandise on the right side of the store.
   • Remove old stock from the shelves.

2. Ambience of the Store

   The store ambience plays an important role in attracting new customers and retaining existing ones.

   • A customer would never purchase anything from a store which is not clean. Foul smell irritates individuals and thus they leave in no time.
   • Play soulful music for a positive effect on the customers.
   • The store should be well lit and ventilated for the customers to enjoy their shopping.

3. Customer Treatment

   Warm customer treatment is an effective way to pull the customers into the store. It is essential for the retailers to treat the customers like kings to expect loyalty from them.

   • Understand your customers well. Try to find out what they expect from the store.
   • The sales representative must greet the customers with a warm smile. It makes a difference.
   • Assist them in their shopping.
   • Never oversell.
   • The retailer must never lie to the customers. If something is not looking good on them, be honest and give them a correct feedback.
   • If a customer comes for an exchange, don’t be rude; instead help him with an alternative.

4. Store Design and Layout

   A customer would never prefer shopping from a store which gives a cluttered look.

   • There should be ample space in the store for the customers to move and shop freely.
   • Put stickers and labels (size, colour, FS (Full sleeves), HS (Half Sleeves) and so on) on the shelves and racks.
   • Don’t stock unnecessary furniture and fixtures in the store.
   • Classify the complete range of merchandise into small groups (categories) comprising of similar and related products. Categories help the customers to locate the products easily.
   • A store must have a trial (change) room.
   • Individuals avoid places where there is a parking hassle. The store should have an adequate parking space.

5. Other Factors
   • Discounts and rebates influence the customers to shop more. A customer might not need a product, but a discount will encourage him to purchase the same as he would now get it at a lower price.
   • Promotional schemes like free gifts also affect the buying decision of the customers. A Free T Shirt with a pair of jeans would definitely prompt the customers to shop more.
   • Customers also indulge in shopping to redeem their coupons and avail discounts.

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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.