STORE ENVIRONMENTS What makes the consumer buy? A look at the way store environments push consumers into buying at WOOLWORTHS SUPERMARKETS Valeria Leek.

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Presentation transcript:

STORE ENVIRONMENTS What makes the consumer buy? A look at the way store environments push consumers into buying at WOOLWORTHS SUPERMARKETS Valeria Leek

Woolworths, the supermarket giant, relies on carefully laid out products and stores atmosphere to induce more spending.  Time, Place & Conditions (situational influences)  Retail Atmospherics  Economic Resources of the Consumer  Consumer's Mood & General Wellbeing Valeria Leek

Time, Place & Conditions (situational influences) How many times have you felt you were in a hurry when entering a supermarket? Or you were in a hurry, and had to look for something quick? Or wanted to buy ice cream in winter but it's too expensive (compared to summer)? Valeria Leek Retail Atmospherics How many times have you sang along a song while shopping for dinner? How many times did you smell bread coming from the bakery? Or how many times have you tried looking for something and relied on signage? Economic Resources of the Consumer Payday is a week away and you only have a certain amount to spend for dinner Consumer's spending increases dramatically when it's payday Mental Budgeting – consumers don't prepare budgeting but rely on their memory Consumer's Mood & General Wellbeing Foul moods may have a tendency to binge- consume Consumers in a good mood find greater hedonic value (immediate gratification)

SITUATIONAL INFLUENCES How do situational influences affect consumer's spendings?  TIME: whether is time of the day or time of the year, time changes consumers desirability for certain products  PLACE: Woolworths interior structure must give consumers the feel of being in a supermarket  CONDITIONS: how temporary conditions shape the value of products (such as the weather) Valeria Leek

RETAIL ATMOSPHERICS Atmospherics Functional Qualities Affective Qualities Servicescape The Physical Environment Odours, Music, Colours & Merchandising ENVIRONMENT THOUGHTS FEELINGS BEHAVIOUR VALUE Valeria Leek

ECONOMIC RESOURCES How do consumer's resources affect buying power when shopping at Woolworths? Antecedent Conditions  Consumer's Buying Power  Consumer Budgeting  Mood & General Well Being Valeria Leek

CONSUMERS' MOOD and GENERAL WELL BEING How does mood and wellbeing impact spending patterns? Transient Affective State  Consumers bring their current moods to the supermarket  General well being contributes to spending patterns Valeria Leek

THE SCIENCE BEHIND SHOPPING Paco Underhill, an american market researcher, wrote a book on consumer behaviour and on what he calls “Environmental Psychology” His most noticeable finds are in the following Theory of the Butt Brush Most people are right handed Unplanned Buying (Impulsive Consumption) Valeria Leek

To conclude, what can Woolworths do to still be the major supermarket player in the future? Provide great atmosphere and give the consumers an experience rather than a chore Provide great atmosphere and give the consumers an experience rather than a chore Great music, nice store temperature Great music, nice store temperature Food samples Food samples Discounts on products Discounts on products Staff training Staff training Ease of movement and store maps Ease of movement and store maps Convenient Locations Convenient Locations Valeria Leek

References Angry man, n.d. photograph, viewed on 24 January 2015,. Happy shopping woman, n.d. photograph, viwed on 24 January 2015,. Hungry beast: power of suggestion: shopping mall design 2011, ABC, viewed 25 January 2015,. Marketing Teacher 2014, Consumer behaviour atmospherics, Marketing Teacher, viewed on 25 January 2015,. Marketing Teacher 2014, Consumer behaviour and science, Marketing Teacher, viewed on 25 January 2015,. Valeria Leek

References Money notes cash, n.d. photograph, viewed on 24 January 2015,. Paco Underhill, n.d. photograph, viewed on 24 January 2015,. Perth Now 2012, Woolworths Coles jump global retail ranks, Perth Now, viewed on 26 January 2015,. The Daily Meal 2013, 11 Secrets supermarkets don’t want you to know, The Daily Meal, viewed on 26 January 2015,. Woolworths, n.d. photograph, viwed on 24 January 2015,. Woolworths 2013, Woolworths, viewed on 26 January 2015,. Valeria Leek