Shopping, buying and disposing Chapter 3 Shopping, buying and disposing

Consumer choices A consumer’s choices are affected by many contextual factors, such as mood, time pressure and the particular situation or context for which the product is needed.

Factors affecting a customer’s choice Figure 3.1 Issues related to purchase and post-purchase activities

Antecedent states The act of purchase is affected by many factors. These include the consumer’s antecedent state (e.g. their mood, time pressure or disposition towards shopping). Time is an important resource that often determines how much effort and search will go into a decision. Our moods are influenced by the degree of pleasure and arousal a store environment creates.

Situational effects Figure 3.2 Dimensions of emotional states Source: James Russell and Geraldine Pratt, ‘A description of the affective quality attributed to environment’, Journal of Personality and Social Psychology 38 (2) 1980: 311–22.

Mood A consumer’s mood will have an impact on purchase decisions. Our moods can change radically during the day, so at different times we might be more or less interested in what a marketer offers. Moods can be affected by store design, the weather or other factors specific to the consumer.

Situational factors A consumption situation is defined by factors over and above the characteristics of the person and of the product that influence the buying and/or using of products and services. Situational effects can be behavioural (e.g. entertaining friends). Situational effects can be perceptual (e.g. feeling pressed for time).

Situational segmentation The usage context of a product can be a basis for segmentation: Consumers look for different product attributes, depending on the use to which they intend to put their purchase. The presence or absence of other people (co-consumers) – and the types of people they are – can also affect a consumer’s decisions.

Time Social time refers to the time in relation to social processes and rhythms and schedules in society. To most Western consumers, time is something that is neatly compartmentalised. Some products and services are believed to be appropriate for certain times and not for others. Some products crossing cultural borders are also crossing over from consumption at one time of day to another time of day.

Shopping motivations and experiences The shopping experience is a pivotal part of the purchase decision. In many cases retailing is like theatre: the consumer’s evaluation of stores and products may depend on the type of ‘performance’ they witness. The actors (e.g. salespeople), the setting (the store environment) and props (store displays) influence this evaluation. Like a brand personality a number of factors such as perceived convenience, sophistication and the expertise of salespeople determine store image. With increasing competition from non-store alternatives, creating a positive shopping experience has never been more important. Online shopping is growing in importance, and this new way to acquire products has both good (e.g. convenience) and bad (e.g. security) aspects.

Shopping motivations and experiences (Continued) In addition to what a shopper already knows or believes about a product, information a store or website provides can strongly influence a purchase decisions. Because we don’t make many purchase decisions until we’re actually in the store, point-of-purchase (POP) stimuli are very important sales tools. These include product samples, elaborate package displays, place-based media and in-store promotional materials such as ‘shelf talkers’. POP stimuli are particularly useful in promoting impulse buying, which happens when a consumer yields to a sudden urge for a product.

Shopping types Several shopping types have been identified: Economic shopper – rational and goal-oriented shopper. Personalised shopper – tends to form strong attachments to store personnel. Ethical shopper – likes to support local small shops. Apathetic shopper – does not like shopping and sees it as a necessary chore. Recreational shopper – sees shopping as a fun and social activity. Hate-to-shop shopper.

E-commerce: clicks vs bricks What consumers value on a website: The ability to click on an item to create a pop-up window with more details about the product, including price, size, colours, and inventory availability. The ability to click on an item and add it to your cart without leaving the page you’re on. The ability to ‘feel’ merchandise through better imagery, more product descriptions and details. The ability to enter all data related to your purchase on one page, rather than going through several checkout pages. The ability to mix and match product images on one page to determine whether they look good together.

E-commerce: clicks vs bricks (Continued) Table 3.2 Pros and cons of e-commerce Source: Adapted from Michael R. Solomon and Elnora W. Stuart, Welcome to Marketing.Com: The Brave New World of E-Commerce (Englewood Cliffs, NJ: Prentice Hall, 2001).

Figure 3.3 Individuals having ordered/bought goods or services over the internet in the last three months (as at April 2015) Source: Eurostat, Date of extraction: 08 Apr 2015 14:51:53 CEST © European Union, 1995–2016

Figure 3.4 Everyday life of a consumer in cyberspace Source: Alladi Venkatesh, ‘Cybermarketscapes and consumer freedoms and identities’, European Journal of Marketing 32(7/8) (1998): 664–76. Used with permission.

Servicescapes: retailing as theatre A retail culture has arisen where the act of shopping has taken on new entertainment and/or experiential dimensions as retailers compete for customers’ attention. Factors affecting the customers selection of one store over another: Store image Atmospherics In-store decision-making The salesperson.

The salesperson A salesperson can be the crucial link between interest in a product and its actual purchase. The consumer’s encounter with a salesperson is a complex and important process. The outcome can be affected by such factors as the salesperson’s similarity to the customer and their perceived credibility.

Post-purchase satisfaction Marketers need to be concerned about a consumer’s evaluations of a product after they buy it as well as before. A person’s overall feelings about the product after they buy it determine customer satisfaction/dissatisfaction. Many factors influence our perceptions of product quality, including price, brand name and product performance. Our degree of satisfaction often depends on the extent to which a product’s performance is consistent with our prior expectations of how well it will function.

Product disposal Because we form strong attachments to some products, it can be painful to dispose of things. Our possessions anchor our identities; our past lives on in our things. In many cases we acquire a new product even though the old one still functions. Reasons to replace an item include a desire for new features, a change in the individual’s environment or a change in the person’s role or self-image.

Product disposal (Continued) Figure 3.5 consumers’ disposal options Source: Adapted from Jacob Jacoby, Carol K. Berning and Thomas F. Dietvorst, ‘What about disposition?’ Journal of Marketing, 41 (April) 1977: 23.

Product disposal (Continued) Recycling When a consumer decides that a product is no longer of use, several choices are available. The person can either: keep the item, temporarily dispose of it or permanently dispose of it. Lateral Cycling Many purchases are made second-hand, rather than new. The reuse of other people’s things is especially important in our throwaway society because, as one researcher put it, ‘there is no longer an “away” to throw things to’.

Product disposal (Continued) Figure 3.6 Shares of packaging waste by weight, EU-27, 2011 Source: http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Shares_of_packaging_waste_by_weight,_EU-27,_2011.JPG (accessed 8 April 2015) © European Union, 1995-2016.