UNDERSTANDING TODAY'S SHOPPER- A LOOK AT THE UNIQUE SHOPPER PROFILES

UNDERSTANDING TODAY’S SHOPPER

A LOOK AT THE UNIQUE SHOPPER PROFILES

SHAHNAB AHMED

There’s no denying that the shoppers’ path to purchase is considerably different today than it was for the shopper of yesteryear. With the advent of smartphones, shopping apps, mobile coupons, and myriad other innovations, how can it not be? This research project aims at providing new information on how shoppers behave when they are in different types of stores deciding which categories and brands to buy we see that it all comes down to one thing – in-store marketing.

The effectiveness of displays and measuring the in-store decision rate, which creates quite compelling case for investing in store environment.  Comprised of three key components, the in-store decision rate factors in generally planned purchases, brand substitution, and unplanned purchases to determine the true number of decisions being made at the shelf. An important part of the marketing mix is the use of materials and devices that stimulate sales where the action is – the point of purchase. Often the decision making process of shoppers does not occur until they actually see a product in the store. Therefore, the way a product is displayed in a store and is supported by in-store marketing materials can often be instrumental in leveraging sales.

UNIQUE SHOPPER PROFILES

When shoppers walk into a supermarket, they do not just reveal where they like to buy but also a whole host of lifestyle values, from what they read and watch to what they like doing in their spare time. It is increasingly difficult for retailers and brand manufacturers to shoe-horn their customers into one specific group.

The predictive shopper profiles contains insights on what shoppers like- based on their stated preference, their browsing habits and the products they actually purchase or abandon in their shopping trips.

Shoppers are clustered into segments to understand the attributes and characteristics that are most important to individuals as they decide where to shop. Shoppers were asked to rate their level of agreement with a broad set of lifestyle and shopping characteristics on a five-point scale. Using factor analysis we are able to create shopper groups based on these lifestyle and shopping statements. These factor groupings form the basis of the creation of shopper segments, which can be analyzed for shopping behavior patterns, price sensitivity, retailer preferences, retailer loyalty, demographic differences, and opportunities for conversion.

These segments have unique attitudes and behaviors as they relate to their shopping patterns and retailer selection. The question is what shopper profiles have emerged with regards to today’s shoppers. The study revealed four basic profiles in shoppers’ path to purchase across all the retail outlets the survey was conducted in.

TIME STRESSED I NEED TO GET IN AND GET OUT QUICK

Cluster 1:

Shopper who feels pressured from not having enough time and seems to be in hurry. Adding to the time pressures are perceived budgetary constraints although this group is not low income

·         Skewed towards younger (18-44) and full time employed

·         Describes self as easily tempted

·         Likely to be shopping with children

·         Least consistent use of written list

·         Second highest percent basket on impulse (70%)

·       Highest total basket average (Rs. 4500/-)

EXPLORER I WANT TO BE INSPIRED

Cluster 2:

Shoppers who enjoys seeing what new products are available, browsing the store in general and getting inspired and plan future activities

·         Skewed towards older (32+)

·         High receptivity to stores with quality private label products as well as perceived variety of product types and packaged sizes

·         The most satisfied shopper on for overall satisfaction

·         Describes self as impulsive and easily tempted

·         Highest percentage impulse basket (72%)

·         Makes most weekly trips

·         Spends longest time in stores

TRIP PLANNER MY TRIP IS ALWAYS ORGANIZED

Cluster 3:

Shoppers whose goal is to get the shopping trip over with and executed according to plan

·         Skewed towards males (28+)

·         Most retailer loyal

·         Most consistent use of written list

·         Not interested in bargain hunting

·         Describes self as controlled and restrained

·         Most accurate in predicting total spends

·         Lowest percent impulse basket (67%)

·         Fewest number of trips per week

·        Shortest time in stores browsing new products

BARGAIN HUNTER I AM LOOKING FOR A GOOD DEAL

Cluster 4:

Shoppers defined by the willingness to shop around for the    lowest price

·         Skewed towards female (21+)

·         Least retail loyal

·         Highest use of coupons

·         Least satisfied shopper on overall satisfaction

·         Skews towards “taking care of the household”

·         Most likely to not purchase an item (s)he planned to buy if found better alternative

·         Lowest basket size average

ANATOMY OF IN-STORE DECISION

WHERE SHOPPERS ARE MAKING PURCHASE DECISIONS 

In order to understand today’s shoppers and better serve their needs, marketers have to first understand how and where shoppers are making a majority of their purchase decisions. Purchases are broken down into 4 categories and the in-store decision rate is one of the most measures because it is based upon pre and post shopping interviews- what the shopper anticipates to purchase versus what they actually purchase. 

The 4 categories that purchases are classified into 

are:

CORE METHODOLOGY

SAMPLE:

A total of 689 retail shoppers were interviewed for this research. The study was executed across 3 metros- New Delhi, Kolkata and Bangalore. The number of interviews conducted per region closely reflected a census balanced sample. The retail shops were large, high volume stores selected from leading chains and were evenly divided among the 3 geographic regions.

SHOPPER INTERCEPT INTERVIEWS:

Shoppers were randomly intercepted and screened at the entrance of each store location for being at least 18 years of age and on routine stock up or fill in trip. These interviews were conducted across all day parts and all days of the week

            Pre-Shopping Interviews:

The 10 minute entry interview gathered information on

·         Planned  purchases ( unaided category and brand planning

·         Amount budgeted/expect to spend for planned items and total basket

·         Demographics and profiling information

Exit Interviews:

The exit interview gathered information on

·         Product purchased ( category and brand level information)

·         Coupons, circular, mobile phone used in purchased decision

·         Total amount spent and by category and method of payment used