In-store purchase behaviour of emerging market customers

Abstract

In this project, we focus primarily on understanding the in-store behaviour of Indian customers. First, we found out via literature review the current understanding of the factors that influence purchase decisions in retail stores. We found that the research regarding this in India is currently lacking. With a combination of an observational study and personal interviews, we found that the factor of individual context is a major determinant of purchase decisions, with planning and company (i.e. who accompanies the primary decision maker) being important subfactors. We also observed that while customers are enrolled in some form of loyalty or membership programs, they feel like they have not extracted any material benefit out of these. Finally, we note what these insights mean for marketers and provide recommendations to break the observed sales cycle mentality of Indian customers as well as to design a better loyalty program.