Lidl and UK Supermarket Customer Purchase Behavior (Research Paper Sample)

Lidl and UK Supermarket Customer Purchase Behavior
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Introduction
An increase in the number of supermarkets in the UK has changed the way consumers purchase their products. Supermarkets have devised different advertising formats to inform potential consumers on the availability of the products in their stores. The recent consumers making purchases from UK supermarkets have found it easy to gauge prices and practice the behavior of product price and quality comparison before purchasing. This has reduced the behavior practiced before where supermarkets depended on customer loyalty and goodwill to make big sales. Consumer behavior of spending a day to buy in bulk has become a thing of the past. Currently consumers’ behavior has changed such that most product purchases are done in small chunks at different times when one feels like having the product. The behavior of purchasing in bulk has been reduced by the difference in pricing and the variety availed by the supermarkets in UK. Current consumers are engaged in market segmentation, where they purchase products from different store during one shopping expedition. This has reduced the sales levels for traditional supermarkets which depended on consumer loyalty (Marimon et al. 2010).
There is a new consumer behavior called Promiscuous behavior. This behavior has killed the trend of traditional supermarkets where they believed in consumer loyalty. They previously made high sales due to their strong and appealing brands to the consumers. Most consumers believed in the market dominance of specific supermarkets and made their whole month’s purchase from store that influences their purchasing behavior. This new consumer demeanor dictates stores to take products to consumers not consumers looking for the products (Homburg et al 2012). Most UK Stores have recently ensured a comprehensive advertisement of their products to the consumers and made it their responsibility to avail goods to such consumers when required. The consumers have had their behavior influenced by electronic commerce that makes them have a variety of products at their disposal. This attitude has not only been beneficial to the consumers because of ability to choose from the variety, but they have also had the ability to compare prices and buy commodities at fairly cheap prices (Stanley 2015).
How Lidl has addressed the promiscuity behavior of consumers
Lidl has opened numerous stores to ensure that every need of a consumer is met at one of their store. Lidl stores are strategically placed with a variety of commodities to entice consumers. Lidl has also ensured their stores are well equipped to prevent other supermarkets to pose competition threats. These practices have drawn consumers to many of the Lidl stores and led to the continuous rise in the supermarket’s profit margins. To tame the promiscuity behavior of consumer, Lidle has always participated in ensuring discounted sales to their potential consumers. This has seen an increasing number of consumers visiting their stores, to get fair pricing models. The discounts provided by the supermarket is not limited to one product or only offered in one region, but the decision to manage such discounts are uniform in all Lidl outlets. To tame this behavior of consumer promiscuity, Lidl has also invested in technology, making it easy and efficient to offer all their services to consumers. The payment methods have been devised such that they are straight forward and direct to prevent customers queuing while purchasing their products (Jones et al. 2014).
With help of Mobile Application, Lidl has found it easier to reach every consumer in all the regions they serve. Consumers have also found it efficient to order from products away from the stores. Technology such as an interactive online platform has also helped Lidl to reach many consumers thus promoting customer loyalty. This has helped to reengineer the brand name of the supermarket. Lidl has also tamed this new consumer behavior by ensuring that their physical stores are reduced, and their products are marketed online. Consumers are only encouraged to make their purchases online and have products availed to them where there are. Lidl also adjusted their opening hours, making their service to twenty four hours a day for whole week. Provision of after sales services has also helped Lidl address the new behavior of consumer promiscuity. Consumers now believe in Lidle products because they enjoy services provided by the supermarket employees. Lidl store are considered all in one. This is because consumers are in a position to find all products they wish to purchase (Pennacchioli 2014). Lidl has also participated in carrying researches to understand consumer behavior and revise their pricing psychology to increase their loyalty towards the supermarket’s products. Since most generations involved in purchasing Lidl products are youths and tech savvy elderly people, the supermarket has invested heavily in internet marketing to help promote their online platform, and increase customer base thus translating to increased profits. The supermarket has also invested in determining customers emotional needs by offering free gifts and promotions before the commencement of sales of new products. Finally, Lidl has offered genuine and customer centric products that have long guarantees. This idea had drawn many consumers to shop in Lidl outlets because of the trust they have on their products (Prevost 2008).
How Lidl has addressed the Segmentation behavior of consumers
The idea of having consumers purchase goods from different shops has not augured well with Lidl. Therefore, they have managed to distribute their outlets everywhere to ensure that their presence is felt everywhere in the region. These outlets are also fully equipped with all products to make them one stop shops for customer. When consumers have gone shopping, all their needs are able to be met at any Lidl outlets. The products are also priced such that their prices are relatively cheaper as compared to other products in the market. Therefore, Lidl products are considered by clients as pocket friendly and of high quality. The many Lidl stores also accept different kinds of payments, making it convenient for all consumers and preventing this behavior of market segmentation by potential consumers (Negri 2014). The lidl locations are also advertised intensively to make potential buyers of their presence and the kind of products they offer. Therefore, every outlet of Lidl is in the public domain and products can either be compared through online platforms or by physically visit...