Impact of Environment on Consumer Behaviour. Situational influences

CONSUMER ENVIRONMENT Those factors Those factors Existing independently of individual consumers and firms Existing independently of individual consumers and firms That influence the exchange process That influence the exchange process

The nature of situational influences Temporary conditions or settings Temporary conditions or settings That occur in the environment That occur in the environment At a specific time and place. At a specific time and place.

Definition All those factors particular to a time and place that do not follow from a knowledge of personal and stimulus attributes and that have a demonstrable and systematic effect on current behavior. All those factors particular to a time and place that do not follow from a knowledge of personal and stimulus attributes and that have a demonstrable and systematic effect on current behavior. Russell W Belk Russell W Belk

Situations 1. Communication situation 2. Purchase situation 3. Usage or consumption situation

Communication situation Setting in which consumers are exposed to communication Setting in which consumers are exposed to communication Will influence ? Will influence ? How much we notice How much we notice How much we understand How much we understand How much we value How much we value How much we retain How much we retain

Three types of communication situation 1.The exposure situation 2.The context of communication 3.The consumer’s mood while exposure to communication occurs

1.The exposure situation 1. Reads a magazine advertisement Views a TV commercial ALONE ? Sees the salesman while getting out to work Hears a radio commercial while eager to listen to election results In between a serial Watching stock market moves

2.The context In between a sad programme In between a Happy programme Car race Cricket Comedy cinema

3.Mood of consumers Pleasant mood –willing to listen to --- Pleasant mood –willing to listen to --- In a hurry In a hurry Waiting for viva voce Waiting for viva voce Why music and dance for communication-- Why music and dance for communication--

II Purchase Situation 1.Instore environment Décor Décor Sounds Sounds Aroma Aroma Lighting Lighting Dress and looks of sales people Dress and looks of sales people Behaviour of sales people Behaviour of sales people

II Purchase Situation Type of people who visit the store Type of people who visit the store Product availability Product availability Shelf position Shelf position Price deals Price deals Displays Displays Physical space to move around Physical space to move around Rush (crowding) or otherwise Rush (crowding) or otherwise

II Purchase Situation Music Music Child care Child care Play space Play space Availability of Food and beverages Availability of Food and beverages Escalators Escalators Good counters Good counters Noise Noise Beggars around you –how do you feel?? Beggars around you –how do you feel??

II Purchase Situation Refrigeration Refrigeration Air-conditioned Air-conditioned Price tags/displays Price tags/displays Queues Queues Many intangibles Many intangibles A lot more A lot more

Atmosphere Atmosphere Layout Layout Sounds Sounds Smells Smells Texture... Texture... Pleasure/displeasure Pleasure/displeasure Arousal/Boredom Arousal/Boredom Time in Store Time in Store Affiliation Affiliation

III Usage or consumption situation Lunch Lunch A guest comes home A guest comes home Weekend trip Weekend trip In the college In the college Treat for friends Treat for friends Wedding Wedding Onam Onam X’mas X’mas Before exams Before exams After a funeral After a funeral

Unanticipated purchase situations Emergencies Emergencies Breakdowns Breakdowns

Gift Giving situations Range of products for gifts Range of products for gifts Involvement Involvement Communicate to the receiver - what ? Communicate to the receiver - what ? Symbolic meaning Symbolic meaning Money value Money value Esteem measure Esteem measure Status of giver Status of giver Giver’s impression of receiver’s personality Giver’s impression of receiver’s personality

Obligatory Obligatory Altruism Altruism Reciprocity Reciprocity Ritual Ritual obligation obligation Love, friendship Love, friendship

Gift Giving situations Functionality Functionality Ritual-culture specific Ritual-culture specific Packing Packing Quality ?? Quality ?? Risky??? Risky??? You as marketer of specific gift items You as marketer of specific gift items -----

TIME AND TEMPORAL PERSPECTIVE Deal with the effect of time on consumer behavior Deal with the effect of time on consumer behavior Less time –shorter,lesser information search Less time –shorter,lesser information search Buys with available information Buys with available information Less than optimal purchase Less than optimal purchase Depend on others Depend on others Brand loyalty to avoid risk Brand loyalty to avoid risk

Temporal effects Internet shopping Internet shopping More time --- More time ---

Social surroundings Presence of other individuals during the purchase Presence of other individuals during the purchase Shopping with fiancé Shopping with fiancé Shopping with friends Shopping with friends Shopping when an enemy is present ?? Shopping when an enemy is present ??

ANTECEDENT STATES Antecedent States... Antecedent States... are the temporary physiological and mood states that a consumer brings to a consumption situation. are the temporary physiological and mood states that a consumer brings to a consumption situation. Physiological State: Hunger. Physiological State: Hunger. Mood State: Happy feelings. Mood State: Happy feelings.

Momentary moods Momentary moods are Momentary moods are such as temporary states of depression or high excitement. such as temporary states of depression or high excitement. (Moods are transient feeling states that are not tied to a specific event or object.) (Moods are transient feeling states that are not tied to a specific event or object.)

Momentary conditions Momentary conditions are such things as Momentary conditions are such things as being tired, being tired, feeling ill, etc. feeling ill, etc. Feeling excited Feeling excited

Antecedent States... Antecedent States... Can lead to problem recognition. Can lead to problem recognition. Can change the “feeling” component of hierarchy of effects Can change the “feeling” component of hierarchy of effects Mood states influence behavior, e.g. shopping to alleviate loneliness. Mood states influence behavior, e.g. shopping to alleviate loneliness.

Olfactory Cues Olfactory Cues Shoppers perceive higher quality goods in scented stores. Shoppers perceive higher quality goods in scented stores. Odors should be consistent with store offerings. Odors should be consistent with store offerings. Note- Note- These cues are expensive to maintain. These cues are expensive to maintain.

Effects of Spatial Arrangements Space modifies/shapes behavior Space modifies/shapes behavior Retail store space affects consumers’ behaviour Retail store space affects consumers’ behaviour Retail stores affect attitudes, images Retail stores affect attitudes, images Stores can create desired consumer reactions Stores can create desired consumer reactions

The Effects of Crowding on Consumers The Effects of Crowding on Consumers Density – Density – how closely packed people are how closely packed people are (i.e., the physical arrangements of people in a space). (i.e., the physical arrangements of people in a space). High density in railway station – High density in railway station – Bank ?? Bank ?? In “fun” situations –better pleasure In “fun” situations –better pleasure

Crowding The unpleasant feelings that people experience The unpleasant feelings that people experience When they perceive that densities are too high When they perceive that densities are too high Feel that their control of the situation has been reduced to unacceptable levels. Feel that their control of the situation has been reduced to unacceptable levels.

Store Location Store Location influences consumers influences consumers Store Layout Store Layout I.e. the physical organization of a store I.e. the physical organization of a store

Atmospherics Design of the building Design of the building Interior space Interior space Layout of aisles Layout of aisles Texture of carpets and walls Texture of carpets and walls Scents Scents Colours Colours Shapes and sounds Shapes and sounds Experienced by customers Experienced by customers

Marketing Implications Marketing Implications Positioning. Situational variables offer multiple opportunities for positioning. Positioning. Situational variables offer multiple opportunities for positioning. Research may indicate which situations present opportunities for new products. Research may indicate which situations present opportunities for new products.

Many Purchases Are Made to Buy Time  The “time-buying consumer” is a consumer who engages in buying time through products  Time-saving qualities are a key promotional idea  Time can act as a product attribute

Marketing Mix. Firms may be able to present time-saving attributes as a trade- off for a higher price. Marketing Mix. Firms may be able to present time-saving attributes as a trade- off for a higher price. Segmentation. An increase in the female work force presents opportunities to market to the segment of males doing more of their own shopping. Segmentation. An increase in the female work force presents opportunities to market to the segment of males doing more of their own shopping.