CONSUMER BEHAVIOR CHAPTER 17

1
CONSUMER BEHAVIORCHAPTER 17

• RETAIL OUTLETS INCLUDE
• STORES
• CATALOGS
• DIRECT-MAIL PIECES
• TELEVISION
• RADIO
• INTERNET

2
CONSUMER DECISION SEQUENCE

• Outlet First, Brand or Item Second
• Retailer
• Image advertising
• Margin management on shelf space/displays
• Location analysis
• Appropriate pricing
• Manufacturer
• Distribution in key outlets
• Point of purchase, shelf space, position
• Programs to strengthen existing outlets

3
CONSUMER DECISION SEQUENCE, CONTINUED

• Brand First, Outlet Second
• Retailer
• Many brands and/or key brands
• Co-op ads featuring brands
• Price special on brands
• Yellow Pages listings under brands
• Manufacturer
• More exclusive distribution
• Brand availability advertising (Yellow Pages)
• Brand image management

4
CONSUMER DECISION SEQUENCE, CONTINUED

• Simultaneous
• Retailer
• Margin training for salespeople
• Multiple brands/key brands
• High-service or low-price structure
• Manufacturer
• Programs targeted at retail sales personnel
• Distribution in key outlets
• Co-op advertising

5
EVALUATIVE CRITERIA FOR OUTLETS

• Outlet Image
• Merchandise
• Service
• Clientele
• Physical facilities
• Convenience
• Promotion
• Store atmosphere
• Institutional (reputation)
• Post-transaction (satisfaction)

6
EVALUATIVE CRITERIA FOR OUTLETS, CONTINUED

• Retailer Brands
• Retailer Advertising
• Spillover Sales
• Price Advertising
• External reference price - presented by retailer
• Internal reference price consumers
  memory/knowledge
• Promote
• savings if large
• savings if large
• Both if both are large

7
EVALUATIVE CRITERIA FOR OUTLETS, CONTINUED

• Outlet Location and Size
• Retail Gravitation Model
• Market share of store is based on size of store,
  travel time to store, and attraction factor for
  product category
• Attraction factor inverse to market share the
  larger the attraction factor, the lower the
  market share, i.e., convenience goods have a
  higher factor than furniture

8
CONSUMER CHARACTERISTICS AND OUTLET SELECTION

• Perceived Risk
• Social
• Financial
• Time
• Effort
• Physical
• Perceived risk is a function of both product and
  consumer.

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CONSUMER CHARACTERISTICS AND OUTLET SELECTION

• Shopping Orientation
• Psychographic-based
• Inactive shoppers (15)
• Active shoppers (12.8)
• Service shoppers (10)
• Traditional shoppers (14.1)
• Dedicated Fringe shoppers (8.8)
• Price shoppers (10.4)
• Transitional shoppers (6.9)
• See demographics of type, p. 608
• Motivation-based (animal metaphors, p. 609)

10
PURCHASE DECISIONS

• Specifically planned
• Generally planned
• Substitute
• Unplanned
• In-store decisions
• Includes generally planned, substitute, and
  unplanned purchases

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IN-STORE INFLUENCES

• Point of purchase displays
• Price reductions and promotional deals
• Stockpiling
• Competitors customers may switch
• Non-users may buy
• New store customers
• Partitioned prices perceived as lower.

12
IN-STORE INFLUENCES

• Atmosphere
• Servicescape
• Atmospherics
• Stockouts
• Sales personnel