1. Buyer Behaviour BUYING & DISPOSING Chp. 10 With Duane Weaver

2. OUTLINE Issues in Buying and Disposing Consumption Situation E-Commerce: –Consumer’s Perspective –Marketer’s Perspective Post-purchase Satisfaction Product Disposal VIDEO

3. Issues in Buying and Disposing Postpurchase Processes Postpurchase Processes Antecedent States Antecedent States Purchase Environment Purchase Environment Situational Factors Usage Contexts Time Pressure Mood Shopping Orientation Situational Factors Usage Contexts Time Pressure Mood Shopping Orientation The Shopping Experience Point-of-Purchase Stimuli Sales Interactions The Shopping Experience Point-of-Purchase Stimuli Sales Interactions Consumer Satisfaction Product Disposal Alternative Markets Consumer Satisfaction Product Disposal Alternative Markets

4. Consumption Situation (1of 2) (situational effects) Physical Surroundings –Décor, smells, temperature Social Surroundings –Presence or absence of clientele Private resort vs. night club Temporal Factors –Perceptions of time impact decisions Antecedent States –Mood and psychological states influence evaluations Shopping Orientation –Economic, recreational, apathetic, ethical

5. Consumption Situation (2of 2) (situational effects) Salesperson –Interaction,knowledge Store Image Retailing as Theatre In Store Decision Making –Spontaneous shopping, impulse buying, point of purchase stimuli E-commerce

6. E-Commerce: Consumer’s Perspective Pros Shop 24 hours a day Less traveling Quick access to information Increased product choices Greater price information Participate in virtual auctions Fast delivery Electronic communities Cons Lack of security Fraud Cannot touch items Selection is difficult High return rate Potential breakdown of human relationships

7. E-Commerce: Marketer’s Perspective Pros Worldwide marketplace Decreases costs of doing business Very specialized businesses can be successful Real-time pricing Cons Lack of security Must maintain site to reap benefits Fierce price competition Conflicts with conventional retailers Legal issues not resolved

8. Post-purchase Satisfaction Expectancy disconfirmation model –satisfaction depends on the degree to which performance is consistent with expectations Acting on Dissatisfaction: 1) Voice Response 2) Private Response 3) Third-Party Response REALITY REINFORCES PERCEPTION

9. Product Disposal Disposal Options: Keep Item Dispose Permanently Dispose Temporarily Lateral cycling: A process where already- purchased objects are sold to others or exchanged for other items WHY ON EARTH do we/should we CARE about how or why/when consumers DISPOSE? What is the impact to our business? Is there any at all? What is the IMPACT?

10. THANKS See you next class…