2 Situational Effects on Consumer Behaviour A consumer’s choices are affected by many personal factors…and the sale doesn’t end at the time of purchaseAntecedent StatesSituational FactorsUsage ContextsTime PressureMoodShopping OrientationPurchaseEnvironmentShopping ExperiencePoint-of-Purchase StimuliSales InteractionsPostpurchaseProcessesConsumer SatisfactionProduct DisposalAlternative MarketsFigure 10.1
3 Situational Effects on Consumer Behaviour (Cont’d) Consumption situationSituational effects can be behavioural or perceptualWe tailor our purchases to specific occasionsThe way we feel at a particular time affects what we buy or doDay Reconstruction MethodSituational self-image (“Who am I right now?”)
4 Social and Physical Surroundings Affect a consumer’s motives for product usage and product evaluationDécor, odors, temperatureCo-consumers as product attributeLarge numbers of people = arousalInterpretation of arousal: density vs. crowdingType of consumer patrons
5 Temporal Factors “Time is money!” Careful information search/deliberation = luxury of timeScooping up anything left on shelves = last-minute gift
6 Economic Time Time = economic variable Timestyle: consumers try to maximize satisfaction by dividing time among activities/tasksPerception of time povertyOne-third of Canadians report feeling rushedWe may just have more options for spending time and feel pressured by weight of all choicesMarketing innovations that allow us to save timePolychronic activity/multitasking
7 Psychological Time Fluidity of time (subjective experience) Time categories relevant to marketersGood times for ads: occasion/leisure times and time to killBad times for ads: flow and deadline timesFive time perspective metaphorsTime is a pressure cookerTime is a mapTime is a mirrorTime is a riverTime is a feast
8 Psychological Time (Cont’d) Experience of time results from cultureLinear separable timeQueuing theory: mathematical study of waiting linesWaiting for product = good qualityToo much waiting = negative feelingsMarketers use “tricks” to minimize psychological waiting time
9 Antecedent StatesMood/physiological condition influences what we buy and how we evaluate productStress impairs info-processing and problem solvingPleasure and arousalMood = combination of pleasure and arousalHappiness = high in pleasantness and moderate in arousalMood biases judgments of products/servicesMoods are affected by store design, music, TV programs
11 Shopping: A Job or an Adventure? Social motives for shopping are importantShopping for utilitarian or hedonic reasonsWomen “shop to love,” while men “shop to win”The reasons we shop are more complex than may appear on the surface!
12 Reasons for Shopping Shopping orientation Varies by product category, store type, and cultureHedonic shopping motives include:Social experiencesSharing of common interestsInterpersonal attractionInstant statusThe thrill of the hunt
14 E-Commerce: Clicks vs. Bricks Is e-commerce destined to replace traditional retailing?E-commerce can reach customers around the world, but competition increases exponentially and it cuts out middlemanBenefits: good customer service, technology value (Eddie Bauer)Limitations: security/identity theft, actual shopping experience, large delivery/return shipping charges
15 Retailing as TheaterCompetition for customers is becoming intense as nonstore alternatives multiplyMalls gain loyalty by appealing to social motives (malls as “mini-amusement parks”)Retail theming techniques:Landscape themesMarketscape themesCyberspace themesMindscape themes
16 Store Image Stores have “personalities” Location + merchandise suitability + knowledge/congeniality of sales staffSome factors in overall evaluation of a store:Interior designTypes of patronsReturn policiesCredit availability
17 AtmosphericsConscious designing of space and its dimensions to evoke certain effects in buyersColours/lighting, scents, and sounds/music affect time spent in store as well as spending levelsActivity storesBuild-A-Bear Workshop chainClub Libby LuViking Home Chef and Viking Culinary Academy
18 Spontaneous Shopping Unplanned buying vs. impulse buying Wider aisles with highest profit margins to encourage browsingPortable shopper in grocery storesPlanners vs. partial planners vs. impulse purchasers
19 Point-of-Purchase Stimuli POP: can be an elaborate product display or demonstration, a coupon-dispensing machine, or even someone giving out free samplesElizabeth Arden computer makeover systemTimex watch sitting in bottom of aquariumTower Records music samplerKellogg’s Corn Flakes sound button in stores
20 The Salesperson A very important in-store factor! Exchange theory: every interaction involves an exchange of valueExpertise, likeability (similarity, appearance), commercial friendshipDyadic relationship between buyer/sellerIdentity negotiationSalespersons’ interaction styles differDiscussion: What qualities seem to differentiate good and bad salespeople?
21 DiscussionThe mall of the future will most likely be less about purchasing products than exploring them in a physical settingThis means that retail environments will have to become places to build brand images, rather than just places to sell productsWhat are some strategies stores can use to enhance the emotional/sensory experiences their customers receive?
22 Postpurchase Satisfaction CS/D determined by attitude about product after purchaseMarketers constantly on lookout for sources of consumer dissatisfactionUnited Airlines’ “United Rising” campaign
23 Perceptions of Product Quality We want quality and value in our products!Product quality = competitive advantageCues for quality and reduced risk:Brand namePriceAdvertising campaign expendituresProduct warrantiesFollow-up letters from companyDiscussion: What is “quality”?
24 Quality Is What We Expect It to Be Marketers: quality = “good”Expectancy disconfirmation model of product performanceExpectations determine satisfaction and/or dissatisfactionImportance of managing expectationsMarketers should not promise what they can’t deliver!Product failure: marketers must reassure customers with honesty of problem
26 Acting on Dissatisfaction Voice responsePrivate responseThird-party responseMarketers need to encourage/respond to customers’ complaints!Shoppers who get their problems resolved feel even better about the store than if nothing had gone wrongFactors in customer dissatisfaction responseExpensive productsProducts from a storeOlder people
27 DiscussionIs the customer always right? Why or why not?
28 TQM: Going to the GembaHow people actually interact with their environment in order to identify potential problemsGemba: the one true source of informationNeed to send marketers/designers to the precise place of product consumptionHost Foods study in airport cafeterias
29 Product Disposal Strong product attachment = painful disposal process! Possessions = identity anchorsEase of product disposal is now a key product attribute to consumersDisposal optionsKeep old itemTemporarily dispose of itPermanently dispose of it
30 Disposal Options Reasons for product replacement Desire for new featuresChange in consumer’s environmentChange in consumer’s role/self-imagePublic policy implications of product dispositionRecycling is a priority in many countriesMeans-end chain analysis study of lower-order goals linked to abstract terminal values when consumers recyclePerceived effort involved in recycling as predictor
31 Lateral Cycling: Junk vs. “Junque” Already purchased products are sold to others or exchanged for still other thingsFlea markets, garage sales, classified ads, bartering for services, hand-me-downs, etc.$850,000 for Jerry Garcia’s guitar!Divestment ritualsIconic transferTransition-placeRitual cleansingInternet has revolutionized lateral cycling
32 DiscussionInterview people who have sold items at a flea market or garage saleAsk them to identify some items to which they had a strong attachmentSee if you can prompt them to describe one or more divestment rituals they went through as they prepared to offer these items for sale