JM602 Consumer Behaviour

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JM602Consumer Behaviour

• Lecture 6 Outlet selection and purchase

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Material in these slides

• Primarily drawn from
• Neal, Quester and Hawkins (2005). Consumer
  behaviour Implications for marketing strategy
  (4th ed). McGraw-Hill Irwin Queensland

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Todays lecture

• What evaluative criteria do consumer use when
  choosing a retail outlet?
• What consumer characteristics influence the
  criteria used?
• What in-store characteristics affect the amounts
  and brands purchased?
• How is the retail environment changing in
  response to the on-line challenge?

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Outlet Choice vs Product Choice

• 1. Brand (or item) first, outlet second
• 2. Outlet first, brand second
• 3. Brand and outlet simultaneously

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Marketing Strategy Based on the Consumer Decision
Sequence
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Use of Advertising to Create Brand Demand and
Direct Consumers to Outlets
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The Retail Scene

• Retail outlet
• any source of products or services for consumers
• In stores
• Other outlets, non-store outlets

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Internet Retailing
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Characteristics of Online Consumers
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Reasons for not Purchasingon the Internet
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What attributes affect retail outlet selection?
(evaluative criteria)

• Stores image
• A consumers or a target markets perception of
  all the attributes associated with a retail
  outlet

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Dimensions and components of store image

• Merchandise
• Service
• Clientele
• Physical features
• Convenience
• Promotion
• Atmosphere
• Institutional
• Post-transaction

• Quality, selection, style, price
• Lay-by plan, sales personnel
• Customers
• Cleanliness, store layout, ease
• Location, parking
• advertising
• Congeniality, fun, excitement
• Store reputation
• Satisfaction

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Store brand quality

• Store brands___ manufacturers brands
• Key success factors for store brands
• High quality
• Reasonable price
• Stressing quality over price may be particularly
  beneficial if brand carries stores name

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Retail advertising

• Advertising is an important factor in outlet
  selection
• Price advertising may be particularly important
• Retailers face 3 key questions
• How large a price discount?
• Should reference/comparison be used?
• What words should accompany the price information?

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Expenditure of Individuals Drawn to a Store by an
Advertised Item
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Outlet Location and Size Retail Attraction Model
MSi

n S i 1
Si / Til

• MSi market share of store i
• Si size of store i (or mall)
• Ti travel time to i
• l attraction factor for a particular product
• category

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Consumer Characteristics and Outlet Choice

• Shopping orientation

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Shoppers perceived risk

• Perceived risk
• Financial risk
• Social risk

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Financial and Social Risks for Various Types of
Products
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In-Store Influences that Impact on Evaluation of
Alternatives, and Purchase
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In-store Influences that Alter Brand Choices

• The nature of unplanned purchases
• Function of processing information in store, or
• Completely unplanned decision
• Reminder purchases or
• Impulse purchases
• Point of purchase displays

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In-Store Buying Habits
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Shopper Purchase Behaviour
Insert table 6.8
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Price reductions and promotional deals

• Are almost always accompanied by use of some POP
  materials
• In-store price reductions do appear to affect
  brand decisions
• Sharp increase in sales when price is first
  reduced, followed by return to near-normal sales
  over time or after price reduction ends

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Price reductions

• Sales increases from price reductions come from
• Brand users stockpiling ahead of time (and using
  more)
• Users of competing brands switching
• Non-product category buyers because the brand
  now has superior value to the substitute
• Customers who do not normally come to the store

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Store layout

• Physical location of items in the store

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Store Atmosphere and Shopper Behaviour
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Shopper Behaviour in Response to Frequent
Stock-outs
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Impact of Stockout Situation
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Additional in-store influences

• Sales personnel
• Salespersons knowledge, skills authority
• Nature of customers buying task
• Customer-sales person relationship
• Purchase
• Businesses need to simplify the purchase process
• First and last impressions are important

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Next Lecture

• Postpurchase Processes,Customer Satisfaction
  andConsumer Loyalty