Customer Behavior in Costco-Wholesale Essay Example

justify">Also, people who come to the store would generally be there to buy something therefore fulfilling the objectives of the project. This observation project attempts to find out how COSTCO customers choose expensive products that they buy with and without the help of a store clerk. The objective of the study is to observe whether the help of a store clerk can facilitate faster decision making to purchase their chosen products or whether it delayed the decision making process. It is hypothesized that the costumers would be able to make faster purchases with the help of the store clerk.

Method This project will employ the observation method. Observations give the researcher the opportunity to observe actual behavior of the individual in a real setting as opposed to laboratory experiments (McDaniel & Gates, 1998). Observations generally are used as qualitative methods of study in that the observations are documented based on the behavior of the individual and not on any quantitative measure although the frequency of the individual’s behavior may be noted but the analysis would be qualitative in nature. Sample

Since the project involves COSTCO consumers, the sample of the study would be costumers who were there to buy high ticket items such as furniture and new appliances since it would require a longer decision making process. The subjects have to be alone when they go to the store since a companion would serve the same basis as the store clerk. Gender, occupation and status will not be controlled for but will be taken note of in the analysis of the results. Procedure The researcher will be on the store where the high-item

products are displayed and will pose as a customer in order to discreetly observe the subjects.

The researcher identifies the subject based on the inclusion criteria. The researcher will then observe the subjects one at a time, one group being assisted by a store clerk and the other group without any help from a store clerk. This can be done because some customers do not ask for assistance while others demand it. On the other hand, all the overt behaviors will be noted in an observation notebook. The identifying characteristics of the subjects will also be noted as well as the time spent by the customer before leaving the store.

Results The results of the observation project showed that the COSTCO customers who were assisted by the store clerk left the store with a purchase more often than those who did not ask for help. The time spent in the store was relatively shorter for customers who did not asked for assistance from any of the store clerk while those who were given assistance stayed longer and took their time. Moreover, the customers who were there to buy appliances compared to furniture ended up with a purchase.

The customers who asked for assistance had varied emotional reactions from being elated to being irritated with the store clerk. Customers who did not ask for help where observed to listen to other customers or to just make up their mind. Some were observed to have come to the store to buy a specific item which meant that they have already known what they want to buy or have come to the store with their

minds made up. The customers who asked for assistance was also observed to try out many items before making the decision to purchase an item, some of which did not purchase anything at all.

Conclusion The observation project showed that although the assistance of the store clerk facilitated more purchases than without any assistance, the customers who had assistance however took more time, and the store clerks had to expend more time and effort. It can be concluded that store clerks can influence the customers to make a purchase although it would take a long time before they do, it was also concluded that the process of the interaction between the consumer and the store clerk seemed to influence the decision to purchase.