1. Copyright 2008 Pearson Education Canada
Buying
and Disposing
Chapter 10
Copyright 2008 Pearson Education Canada

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 purchase
Antecedent States
Situational Factors
Usage Contexts
Time Pressure
Mood
Shopping Orientation
Purchase
Environment
Shopping Experience
Point-of-Purchase Stimuli
Sales Interactions
Postpurchase
Processes
Consumer Satisfaction
Product Disposal
Alternative Markets
Figure 10.1

3. Situational Effects on Consumer Behaviour (Cont’d)
Consumption situation
Situational effects can be behavioural or perceptual
We tailor our purchases to specific occasions
The way we feel at a particular time affects what we buy or do
Day Reconstruction Method
Situational self-image (“Who am I right now?”)

4. Social and Physical Surroundings
Affect a consumer’s motives for product usage and product evaluation
Décor, odors, temperature
Co-consumers as product attribute
Large numbers of people = arousal
Interpretation of arousal: density vs. crowding
Type of consumer patrons

5. Temporal Factors “Time is money!”
Careful information search/deliberation = luxury of time
Scooping 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/tasks
Perception of time poverty
One-third of Canadians report feeling rushed
We may just have more options for spending time and feel pressured by weight of all choices
Marketing innovations that allow us to save time
Polychronic activity/multitasking

7. Psychological Time Fluidity of time (subjective experience)
Time categories relevant to marketers
Good times for ads: occasion/leisure times and time to kill
Bad times for ads: flow and deadline times
Five time perspective metaphors
Time is a pressure cooker
Time is a map
Time is a mirror
Time is a river
Time is a feast

8. Psychological Time (Cont’d)
Experience of time results from culture
Linear separable time
Queuing theory: mathematical study of waiting lines
Waiting for product = good quality
Too much waiting = negative feelings
Marketers use “tricks” to minimize psychological waiting time

9. Antecedent States
Mood/physiological condition influences what we buy and how we evaluate product
Stress impairs info-processing and problem solving
Pleasure and arousal
Mood = combination of pleasure and arousal
Happiness = high in pleasantness and moderate in arousal
Mood biases judgments of products/services
Moods are affected by store design, music, TV programs

10. Dimensions of Emotional States
Figure 10-2

11. Shopping: A Job or an Adventure?
Social motives for shopping are important
Shopping for utilitarian or hedonic reasons
Women “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 culture
Hedonic shopping motives include:
Social experiences
Sharing of common interests
Interpersonal attraction
Instant status
The thrill of the hunt

13. Shopping Types Economic consumer Personalized consumer
Ethical consumer
Apathetic consumer
Recreational shopper

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 middleman
Benefits: good customer service, technology value (Eddie Bauer)
Limitations: security/identity theft, actual shopping experience, large delivery/return shipping charges

15. Retailing as Theater
Competition for customers is becoming intense as nonstore alternatives multiply
Malls gain loyalty by appealing to social motives (malls as “mini-amusement parks”)
Retail theming techniques:
Landscape themes
Marketscape themes
Cyberspace themes
Mindscape themes

16. Store Image Stores have “personalities”
Location + merchandise suitability + knowledge/congeniality of sales staff
Some factors in overall evaluation of a store:
Interior design
Types of patrons
Return policies
Credit availability

17. Atmospherics
Conscious designing of space and its dimensions to evoke certain effects in buyers
Colours/lighting, scents, and sounds/music affect time spent in store as well as spending levels
Activity stores
Build-A-Bear Workshop chain
Club Libby Lu
Viking Home Chef and Viking Culinary Academy

18. Spontaneous Shopping Unplanned buying vs. impulse buying
Wider aisles with highest profit margins to encourage browsing
Portable shopper in grocery stores
Planners 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 samples
Elizabeth Arden computer makeover system
Timex watch sitting in bottom of aquarium
Tower Records music sampler
Kellogg’s Corn Flakes sound button in stores

20. The Salesperson A very important in-store factor!
Exchange theory: every interaction involves an exchange of value
Expertise, likeability (similarity, appearance), commercial friendship
Dyadic relationship between buyer/seller
Identity negotiation
Salespersons’ interaction styles differ
Discussion: What qualities seem to differentiate good and bad salespeople?

21. Discussion
The mall of the future will most likely be less about purchasing products than exploring them in a physical setting
This means that retail environments will have to become places to build brand images, rather than just places to sell products
What 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 purchase
Marketers constantly on lookout for sources of consumer dissatisfaction
United Airlines’ “United Rising” campaign

23. Perceptions of Product Quality
We want quality and value in our products!
Product quality = competitive advantage
Cues for quality and reduced risk:
Brand name
Price
Advertising campaign expenditures
Product warranties
Follow-up letters from company
Discussion: What is “quality”?

24. Quality Is What We Expect It to Be
Marketers: quality = “good”
Expectancy disconfirmation model of product performance
Expectations determine satisfaction and/or dissatisfaction
Importance of managing expectations
Marketers should not promise what they can’t deliver!
Product failure: marketers must reassure customers with honesty of problem

25. Managing Quality Expectations
Figure 10.4

26. Acting on Dissatisfaction
Voice response
Private response
Third-party response
Marketers need to encourage/respond to customers’ complaints!
Shoppers who get their problems resolved feel even better about the store than if nothing had gone wrong
Factors in customer dissatisfaction response
Expensive products
Products from a store
Older people

27. Discussion
Is the customer always right? Why or why not?

28. TQM: Going to the Gemba
How people actually interact with their environment in order to identify potential problems
Gemba: the one true source of information
Need to send marketers/designers to the precise place of product consumption
Host Foods study in airport cafeterias

29. Product Disposal Strong product attachment = painful disposal process!
Possessions = identity anchors
Ease of product disposal is now a key product attribute to consumers
Disposal options
Keep old item
Temporarily dispose of it
Permanently dispose of it

30. Disposal Options Reasons for product replacement
Desire for new features
Change in consumer’s environment
Change in consumer’s role/self-image
Public policy implications of product disposition
Recycling is a priority in many countries
Means-end chain analysis study of lower-order goals linked to abstract terminal values when consumers recycle
Perceived effort involved in recycling as predictor

31. Lateral Cycling: Junk vs. “Junque”
Already purchased products are sold to others or exchanged for still other things
Flea markets, garage sales, classified ads, bartering for services, hand-me-downs, etc.
$850,000 for Jerry Garcia’s guitar!
Divestment rituals
Iconic transfer
Transition-place
Ritual cleansing
Internet has revolutionized lateral cycling

32. Discussion
Interview people who have sold items at a flea market or garage sale
Ask them to identify some items to which they had a strong attachment
See if you can prompt them to describe one or more divestment rituals they went through as they prepared to offer these items for sale