Abstract 2

Introduction. 3

Background and rationale: 2

Research questions and objectives: 4

Preliminary literature review.. 4

1.Understanding customers shopping motivations 4

2. The different consumption ways 6

3.Good relationship with consumer. 8

4. Personal values and attitudes 9

Methodology. 11

Target ,Sample and Questionnaire. 11

Case study. 12

Evaluation and Qualitative Research. 13

Research Procedures 13

Reference. 14

Consumption habits change the influence of retail

(Research Proposal)

Abstract

Consumption habits of consumers is one of the key issues which would be taken into retailers’ consideration for their strategies and selling plans. In recent years, lots of new consumption patterns have appeared and come into vogue. The researchers carried out a study using the grounded theory approach through participant-observation and questionnaire research. The researchers chose the retail industry for the study because it provided the ideal conditions to answer the research question. This study aims to finding the way to make clear and assess the affect that comsumption habits changes brought to retail and improve the attractiveness of traditional consumption pattern. The choice of methodology has provided the insight necessary to answer the research question. With improvement and consummation of its outcomes, the research could provide a useful framework of reference for further research of consumption patterns and retail crisis.

Key words: consumption habits, cunsumption pattern, retail, influence

Introduction

Background and rationale: As the traditional consumption pattern, retail is widely recognized as an unreplaceable role to satisfy customers' consumption needs. However, retail is now faced with multiple challenges come from the new patterns, such as online shopping and television shopping. Since the new patterns have so many modernistic and practial characters：convenience, faster , reliable... they have obtained more and more favors from various customers especially young people，what’s  more, the aged are also paying more attention to these patterns and trying to adapt to them. A case in point is the vigorous development of shopping websites in recent years.，since there are still huge potential market, a great deal of similar websites will be founded rapidly. Undoubtly, the retail would be affected.

In the retail business, Factors that affecting the net income of entities is that the commercial facilities rents and enterprises’ manpower cost price. On the one hand, the retail enterprises need to faces the problem that the house lease is reducing generally, so the rent soar in a quite short time. On the other hand, the recruiting of workers is getting more and more difficult, at the same time, the staff’s requests of salaries raises are getting more and more explicit.. If nothing to be done to promote the management ability, and lack of other effective methods, competitiveness of retail business will be badly lost.

At the same time, sellers will consider how to attract the customers in any possible ways. They want to know customers needs and wants, they also want to know if their products or services are repulsive or out of date. The current trend is to make a good plan for people and keep a good relationship with customers. On the other hand, try to understand customer consumption ways and motivation is also very important for the sellers. So, finding the way to make clear and assess the changes and affect to retail and improve the attractiveness of traditional consumption pattern becomes the focus of the research. In additon, we still need to clearly know the difference between the two consumption pattern and the trend of customers’ personal attitudes.

Research questions and objectives:

1. How the change of cunsumption pattern impacts of retail business?

2. What is the key issue of making customers satisfy?

3. What’s the new cunsumption trend?

4. How to make satisfy to customers in new consumption ways?

5. What can we learn from the changes of personal values and attitude of customers?

To identify the link between shopping motivations and product purchasing.

To know the new ways whether bring a quite serious affect to retail.

To compare the two different consumption pattern.

To identify effective ways to increase sale.

To inquire about how to know more about consumers’ needs and keep a good relationship with consumers.

Preliminary literature review

1.Understanding customers shopping motivations

Shopping motivations is the direct power that impels the customer to purchase the product. In concrete purchase process，the conflict between several kinds of purchase motives is quite common . For example，guests always want both excellent in quality and reasonable in price，but actually, one peice of merchant can not cover that two requests in the normal situations. So, retailers needs to understand more about the shopping motivations of consumers.

According to Hardesty and Bearden(2009), to understanding people shopping motivations has becoming great challenges for retail.That means retailers need to try their best to inquiry that why the customers want to buy some goods. As we know, shopping motivations vary from person to person, moreover, motivations come from manifold ways. To, Liao, and Lin (2007) had investigated the Internet shopping motivations from both utilitarian and hedonic perspectives.In their opinion, shopping motivations mostly correlate with these two factors. Many authors and economists proposed that hedonic shopping motivations ought to be encouraged. Arnold and  Reynolds(2003) identifies a comprehensive inventory of consumers’ hedonic shopping motivations.In their research,  a cluster analysis of adult consumers reveals five different shopper segments, called here the Minimalists, the Gatherers, the Providers, the Enthusiasts, and the Traditionalists, and they also notice that entertainment become a more important retailing strategy which can effectively stimulate customers’ interest .

As their definitions, there are several shopping motivation modes: adventure shopping , social shopping, gratification shopping, idea shopping, role shopping, value shopping.

Market segmentation has been applied to explain individuals and their shopping motivations(Smith, 1956). Market segmentation is the act of splitting a market into different groups of perchasers with different wants and responses. To segment markets, companies may have three approaches to adopt: (a) mass marketing, which is the decision to attempt to attract all kinds of buyers and mass-produce and mass-distribute one product, (b) product-variety marketing, where a company attempts to render a variety of products to broaden their customer base, and (c) target marketing, in order to develop corresponding products and marketing mixes for each target market , the decision of target marketing should be taken to distinguish the different groups that make up a market. Therefore, individuals with different characteristic who are capable of positively responding to specific marketing stimuli must be segmented in homogeneous groups. Referring to the market segmentation concept, Etzel et al.(2001) metions that“the variation in consumers’ responses when exposed to a marketing mix can be traced through differences in shopping habits, product use and reason for purchase”. Moreover, the factor of reason for shopping relate to the customers’ mentality. People may buy a merchant for many psychological reasons: maybe they want to enjoy the beauty of goods, maybe they just would like to show off, and maybe they just want to follow others in action.

2. The different consumption ways

Now along with Internet's popularization, more and more ordinary consumers starts to interest in purchasing the daily wants on the Internet. If the past consumption place is a concrete place, then the place the Internet provides is a hypothesized one. The network shopping is actually a network supermarket, the consumer may stay in home while shuttling with freedom in the network supermarket, to seek and examine the pleasing product. Through the net payment system, the consumer can wait for delivers goods to the doorstep, it is not just a saving of time and the manpower but does a more important matter on the consumption devolopment. The seller can avoid rents of selling scene and personnel's expenses, in this way, the product cost can be reduced, so sellers could fight for the customers by the cheaper price and earn much more profits. Compared with network sellers, entity sellers such as department store must adapt to the market impact which the network supermarket brings. The entity Entity merchants ' inferiority is that they need to undertake more locations and the personal expenses, the shopping in a department store is not as convenient as that on the Internet; The superiority is that they may provide the real product and direct experience to the customer, they can leave out the delivery expenses. Entity sellers also should update their strategies, by setting the department store to seem to be a supermaket, the people who come for the products may choose a suitable one at a reasonable expenses(for instance handset, clothes, computer and so on) . After choosing, customers put it in the shopping cart, then go to the counter to settle accounts. Simultaneously, the specialized marketing personnel can provide the specialized advisory service at all times. A large amount of studies have been done to discover and analyze the concrete flaw of on-line shopping, so that sellers and websites managers can take measures to make the improvement, then the online supermarkets can attract more customers to purchase the on-line commodity. Ashkenazi et al(2010) had found a series of systems and methods for facilitating internet shopping, including a method of increasing efficiency of navigation in a comparison shopping site based on product coverage and product entropy.

Another kind shopping way which received increasing attention is the television shopping, compared with the network shopping, its has natural superiority­:television channel creditworthiness is higher than most of commercial websites so far. Moreover, the television channel can open the website electronic commerce, and it can satisfies the user the purchase demand through the telephone (or message), the mail and many other ways. The more important is that the television channel sells have the huge  directive appealing power that the on-line shopping does not have. But actually , the shortcoming of the television shopping exactly lies in insufficient creditworthiness, so it still could not obtain the majority customers’ identity. Minjeong Kim, Sharron J. Lennon (2000) suggest that the amount of information perceived from a television-shopping segment selling apparel was negatively related to perceived risk ,and however positively related to purchase intent.

The future will be the coexisting time of hypothesized supermarket and the entity supermarket. It is a quite good trend for the consumers, it will not only enrich people's consumption way but also improve people's consumption quality.

Nirmalya Kumar (2005) think that a sea change is going on retail marketing, suppliers and retailers need to find out means to come to agreement over price-off promotions and discounting. Obviously, there are a lot work need to do.Faced with this challenge , researchers and executives of entity merchants make use of several research techniques and instruments to help them grasp shopping motivations and inprove the attractiveness of traditional retail. Eleonora P.and Giuseppe N.(2010)suggest that consumers shopping experience can affected by advanced technologies, at the same time, these technologies can modify the retailing context. Several advanced technologies are refered: RFID, shopping assistant systems, smart mirror. As the consumption patterns still changing frequently, we can predict that more and more advanced technologies will be used in the retail activities.

3.Good relationship with consumer

Keeping a good relationships with consumers will be helpful to understanding their needs, and then it will know how to make consumers satisfy. When we talk to someone who is your consumer, you maybe want to know her or his needs and wants. So, setting up a good relationships with your consumers is the way to get more messages of their consumption habits and attract him to be a long-term customer.

The most important relationship is relationship of integrity: honest seller and honest consumer. A successful market has the high market share, which tightly relate with its good impression formed in the customer’s mind . The good impression will constitute good faith of the market. To be specific, the market’s credit comes from providing the customer the best goods and service, not selling the fake and shoddy commodity, not carrying on the price cheat, being a kind of honest image. The market should to make the customer satisfied, and create the excellent atmosphere for the customer to be regular , these changes will also patronizes the market and customer's good reputation. Customer's credit is refers to the behaviour which customer carry on the redundant purchase in the same market, namely the customer’s loyalty, For more, it means that the customer show his satisfactions to the market management ideas, enterprise's operation condition, effects of seeing and hearing, goods quality , smiling service and so on when they are shopping in the market. Based on this satisfactions, there will be good relationships between the market and customers. The credit is the market livelihood basis, its significance lies in: 1. The market may the win customers if it is enjoying a good reputation. The customer is God for the marker, who will bring the profit to the market, and the customer also is the market’s best resource. Especially, the loyal customer will become a kind of strategy property of the market and its development.2. The market will win the market if it is enjoying a good reputation, the market must face competitions not only from the same industry, but also other selling patterns. 3. The market will win the benefit if it is enjoying a good reputation. The good reputation is one kind of invisible propelling force for the market development, and will benefit long-term development of the market.

Marketing theory and practice have focused persistently on exchange between buyers and sellers. However,in most of the research and too many of the marketing strategies, buyer-seller exchanges has been carried on as discrete events instead of ongoing relationships(Dwyer& Schurr,1987). Salesperson customer-oriented behavior show its influence on the development of buyer-seller relationships from several part.( Williams, 1998), nowadays choosing the right choice of behavior seems to be more important. Ganesan(1994) suggests that mutual dependence and the extent to which they trust one another are the two main factors which affect the long-term orientation in a buyer/seller relationship. “Dependence and trust are related to environmental uncertainty, transaction-specific investments, reputation, and satisfaction in a buyer/seller relationship.” Among so many factors, which one is more vital depends on special circumstance and details. There are also researchers focused on the influence from new consumption patterns and technology improvements. Interorganizational data networks can have two opposing effects on buyer-seller relationships. On the one hand, networks may be used to foster electronic marketplaces characterized by more ephemeral transactions between buyers and sellers. Also plausible, however, is the use of networks to strengthen existing commercial relationships and lock in partners by increasing the costs of switching to new trading partners(Steinfield,Kraut &Plummer,1995).

4. Personal values and attitudes

It will not be too hard to understand tha personal values and consumer behavior are related ,The relationship between personal values and consumer behavior has been largely investigated in marketing literature (Kahle et al., 1986), but consumer behavior need to be discussed more thoroughly and clearly. Schwartz(1994) defines that personal values means “enduring beliefs that individuals hold about specific modes of conduct that they think are important and the guiding principles in their lives”.

The personal values have provided the formidable intrinsic driving force for the occurrence of the consumer’s behavior, it has the function of expense guidance, and was considered to be the consumer behavior final determining factor. Therefore, the personal values have the vital significance in the consumption psychology and the market marketing research area. Many researchers attempt to construct theorization and the generalization of the consumer values and the consumer behavior relation.By studing the structure of the consumer’s personal values, retailers intend to understand  the relation between the consumer and products choosen, and formulate the marketing strategy according to the above.

Each society will have some kind of values which is accepted generally by the populace, and the different country's cultural values will also have respectively the different characteristic, individual values will be influented by different cultural values. In the marketing practice, and marketing decision-making, more and more marketing personnel pay attention to personal values of the consumer and its influence on consumer’s behavior.Culture generally is accepted by marketing theorists as one of the underlying determinants of consumer behavior(Henry,1976).

Consumer's rationality is limited. Under the circumstance of rational limited and information limited, the intuition and the feeling of emotionalism will always affect the decision-making. Consumer's personal values and ideology decided by the economic basis and the economic development condition at root, this kind of economic development situation include consumer’s social position in current concrete social environment, economic status, cultural status, disposition by chance and so on. The development of society productivity will immediately influence social legislation, social product structure, population structure and then consumer's values and ideology. The consumers will care more about the working time and the power of consumption, for the income is the basis of decision of the consumer’s expends. The enhancement of consumer’s income level affects consumer's values and the ideology, only when consumer's income allows him to spend much in commodity that is not on food can he form a more luxurious and popular values. In addition, the social stratum background also has major impact to the consumer’s personal values and ideology. For example, compared with a sanitation worker's daughter ,when choosing a famous brand clothing, a general's daughter will be more confident, simultaneously more rapid.

Consumer’s attitude and personal values is undertaking huge transformation all over the world, both devoloped and devoloping countries. Nozomi Enomoto(2011) suggest that Japanese retailers now face various and complicated changes in the business environment, which include economic globalization, development of information technology, demographic change and changes in consumer values and behavior. Consumer values and behavior in Japan reflect a characteristic transition in the retail sector, in which department stores have been a major force. Although Internet sellers offer the lowest prices, research shows that even price-sensitive customers do not always purchase from the Internet. In the network consumption section, value has been gradually deemed as a key motivator in economics and marketing when customer making decision, not prices(Gupta&Hee-Woong Kim).

Methodology

Target ,Sample and Questionnaire

Since the author does not have enough information to carry out the research project,  we conducted exploratory-descriptive research (Malhotra, 2010), in order to achieve the purposes of this study..The exploratory phase seeks to clarifying concepts ,broaden the understanding of the study’s main topic and providing elements for the forthcoming steps of study.

In this phase, the author will invite 5~6 classmates or friends to distribute questionnaires which are used to collect basic data in the research. Together with the author, each person will have his own distribution region which should be uniformly distributed in the city, in detail, divide the city into 6 parts on the map, then a classmate will be in charge of one part. In one part , the responsible person will investigate and survey the consumers in the supermarkets or department stores randomly, and he should notice the homogenization of consumers’gender, age and other characteristic if possible. The difference of knowledge is taken into consideration, so the survey won’t be very complicated.

The proposed questions:

1.What do you know about online shopping and televasion shopping?How often do you perchase through the Internet and televasion?

2.What kind of goods would you buy on the Internet or televasion? And the reason is?

3.Compared with market and department store, what is the advantages and disadvantages of oneline shopping and televasion shopping?

4.Do you think that the new consumption patterns can take place of the traditional one?

Why would that happen(or not happen)?

5. What can be your possible motivations for a new kind of goods?

6.What do you think of the relationships between retailers and buyers? What’s your expectation about that?

Case study

Wal-Mart , the global biggest retail merchant, has more than 2500 stores in the US, and over 700 shops over the seas. As a traditional enterprise, Wal-Mart has received huge impact from the network shopping and other new shopping ways in recent years. However, facing with threat of consumer decreasing, Wal-Mart built its own e-commerce system, to deal with the challenge from the competitor of new patterns through the development of new operations.In 1986, Wal-Mart set up the QR system for logistic management. In 2010, Wal-Mart promoted its on-line shopping service in  Shenzhen,China...Wal-mart makes every effort to adapt to the trend of the conbination of hypothesized supermaket and entity supermarket.That’s why this enterprise could be the best and most profitable company in the retail business for several decades.

Other retail enterprises may obtain the positive advantageous experience from Wal-Mart's case. The retail enterprises should establish the effective information network with high speed. Make full use of the electronic commerce to carry on the data refinement and obtain possible useful information for decision making from the massive data. Combine logistic system with the electronic commerce to reduce the cost of management and operation. In addition, retailers can take the chance of big transformation of the traditional commerce and find more ways to overcome the challenge brought by the new consumption patterns.

Evaluation and Qualitative Research

By summarizing the questionnaire survey's data, the author will carry on a scientific qualitative analysis. Through the answers to the questions in the questionnaire, the author is ready for an evaluation about the relationship amongst shopping motivations, personal values and attitudes of consumers, the changes of consumption habits, the transformation of consumption patterns.

Research Procedures

Reference

Arnold M.J. and Reynolds K. E. ,2003 Hedonic shopping motivations. Journal of Retailing ,Vol 79, No. 2, pp 77-95,2003

Ashkenazi A. et al,2010, Systems and methods for facilitating internet shopping US Patent 7805339

Charles Steinfield, Robert Kraut, Alice Plummer, 1995,The Impact Of Interorganizational Networks On Buyer-Seller Relationships, Journal of Computer-Mediated Communication,Vol1, No. 3, pp0, December 1995

Dwyer, F.R, Schurr, P.H.,1987 ,Developing buyer-seller relationships The Journal of Marketing , Vol. 51, No. 2, Apr., 1987

Eleonora P.and Giuseppe N, 2010.Entertainment in retailing: The influences of advanced technologies .Journal of Retailing and Consumer Services Vol17, No.3, pp 200-204, May 2010

Etzel,M.,Walker, B, J.and Station, W, J,2001.Marketing ,Sao Paulo, Makron Books

Ganesan S.,1994, Determinants of long-term orientation in buyer-seller relationships The Journal of Marketing, Vol. 58, No. 2, Apr., 1994

Gupta1.S, Hee-Woong Kim, 2010, Value-driven Internet shopping: The mental accounting theory perspective, Psychology and MarketingVol 27,No. 1, pages 13–35, January 2010

Hardesty,D.M and Bearden,W.O, 2009.Consumer Behaviour And Retailing.Jounal of Retailing,85(3) 239-244

Henry WA,1976, Cultural values do correlate with consumer behavior ,Journal of Marketing Research,Vol. 13, No. 2, May, 1976.

Kahle, L. R., Beatty, S. & Homer, P. (1986). Alternative measurement approaches to consumer values: the List of Values (LOV) and Values and Life Style (VALS). Journal of Consumer Research, 13(3), 405-410.

Kim M., Lennon S. J., 2000, Television Shopping for Apparel in the United States: Effects of Perceived Amount of Information on Perceived Risks and Purchase Intentions, Family and Consumer Sciences Research Journal Vol 28, No. 3, pp301–331, March 2000

Malhotra, N. (2010). Marketing Research. An applied orientation, Boston, Pearson

Nirmalya Kumar ,2005,The Global Retail Challenge.Business Strategy Review.Vol16, No.1, pp 5–13, Spring 20##

Nozomi Enomoto , 2011,The Silver Market Phenomenon Springer 2011, Part 2, 175-193

Pui-Lai To, Chechen Liao, Tzu-Hua Lin, 2007. Shopping motivations on Internet: A study based on utilitarian and hedonic value, Technovation Vol 27, No. 12, Dec 2007, pp 774-787

Smith W.R.1956, Product differentiation and market segmentation as alternative marketing strategies.The Journal of marketing, vol.21,No.1, Jul.1956

Schwartz.S.H, 1994.Values and personality, European Journal of Personality,vol.8,163-181(1994)

Williams,M.R, 1998. The influence of salespersons’ customer orientation on buyer-seller relationship development. Journal of Business & Industrial Marketing, Vol. 13 Iss: 3, pp.271 - 287

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