Type Of Customer Addressed by Discount Retailer - Paper Example

Published: 2021-07-16
869 words
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University of California, Santa Barbara
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Discount retailers are the type of retailers who offer goods and services at a lower price than what is provided in the market. The discount retailers have different types of customers that need to be addressed, and therefore, the retailer should be keen to attract such customers using different strategies. There are five types of clients that discount stores need to address(Foxall & Sigurdsson, 2013).

Loyal customers are those customers who prefer to do their shopping of goods and services at a particular discount store. These types of customers make up to 50 percent of total sales although they constitute only 20 percent of customers visiting the discount store. There are discount customers who are the type of customers who shop in the store frequently, but their decisions depend on some markdowns that the discount retailer provides. Impulse customers are those types of customers who do not have an item in their purchasing list, and thus they will purchase what seems good. The discount retailers also have need-based customers who have a particular intention of purchasing a good at the discount store. There are also wandering customers who are the type of customers who have no particular desire to visit the store rather they want to feel the experience of shopping at the discount store.

Factors that Influence shopping and buying habits

Different factors influence the shopping and buying habits in the discount stores. The factors include; cultural, social, personal and psychological. Cultural factors play a vital role in influencing the shopping habits of consumers since the factors can influence the belief the consumers, the role of the consumers as well as the traditions and values regarding certain goods and services. Therefore, the discount retailer should be keen in examining the likes and dislikes of cultures within the locality which they operate since it will impact the consumer behavior.

Social factors do also influence the shopping habits of consumers since the available brands and products will depend on the opinions of other consumers. Consumers offer reviews about a product provided in the store, and hence the discount store should be aware of such reviews to improve on them. Additionally, family members, friends as well as organizations can influence the shopping habits in the discount store when they provide opinions regarding particular products in the store (Frank, 2014).

Several personal factors can influence the behavior of consumers in the discount store. Age is a major factor since consumers are known to change their preferences and tastes depending on the age of consumers. Occupation is another personal factor since different consumers have the different interest in the type of goods that they want to purchase in the discount store. Additionally, the financial conditions of a consumer can affect the purchasing power, and hence it can influence the shopping habit of the consumer.

Threats that Influence Customer Behavior

Threat of Competitors

The entry of new competitors in the market will have a significant impact on how the consumers behave in the discount store. New entrants will start their business by offering free goodies and reducing the prices of goods and services, and therefore, a certain percentage of consumers will shift to the competitors as a result of such factors. Therefore, the variation is due to the changes in the market due to the new competitors which mean that the consumers preferences on the discount retailer will change.

Economic Recessions

Consumers behavior is largely attributable to the variations in the economy, and therefore, any slowdown or recession in the several sectors of the economy will affect the choice and preference of consumers. In cases where the economy is undergoing economy recession, then the discount store business will be affected since the consumers will have priorities regarding what goods and services to purchase and what not to buy. As a result, the economic recession will impact the consumer behavior in the discount store (Solomon, 2014).

Marketing Campaigns

Marketing is an important technique that discount stores use to advertise their goods and services and therefore, the success of the discount store will depend largely on the campaigns that the discount store will perform (Cantallops & Salvi, 2014). However, in cases where the discount store does not play well marketing campaigns as should be required, then consumer behavior can be affected. Therefore, marketing campaigns are crucial in ensuring that consumers are aware of the availability of goods and services and thus it can be a threat to consumer behavior if not properly carried out.

Purchasing Power

Purchasing power is the ability of the consumers to buy goods and services that are provided at the discount store. Purchasing power can be impacted by several factors since it directly refers to the ability of consumers in the country to purchase goods and services. Therefore, it can be a threat in case the goods provided in the discount store cannot be afforded by the consumers.


Cantallops, A. S., & Salvi, F. (2014). New consumer behavior: A review of research on eWOM and hotels. International Journal of Hospitality Management, 36, 41-51.

Foxall, G. R., & Sigurdsson, V. (2013). Consumer behavior analysis: behavioral economics meets the marketplace. The Psychological Record, 63(2), 231-238.

Frank, R. (2014). Microeconomics and behavior. McGraw-Hill Higher Education.Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.

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