Consumers Rule

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Buying and Disposing Chapter 10
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Situational Effects on Consumer Behavior

• A consumers choices are affected by many
  personal factorsand the sale doesnt end at the
  time of purchase

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Situational Effects on Consumer Behavior (Contd)

• Consumption situation
• Situational effects can be behavioral 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?)

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Situational Effects on Consumer Behavior (Contd)

• Market segmentation strategies position products
  for important usage situations

Table 10.1 (Abridged)
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Social and Physical Surroundings

• Affect a consumers 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

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Temporal Factors

• Time is money!
• Careful information search/deliberation luxury
  of time
• Scooping up anything left on shelves
  last-minute gift

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Economic Time

• Time economic variable
• Timestyle consumers try to maximize
  satisfaction by dividing time among
  activities/tasks
• Perception of time poverty
• One-third of Americans 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

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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

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Psychological Time (Contd)

• Experience of time results from culture
• Linear separable time
• Procedural time
• Circular/cyclic 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

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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

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Dimensions of Arousal
Figure 10.3
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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!

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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

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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
  (Virtual ModelTM)
• Limitations security/identity theft, actual
  shopping experience, large delivery/return
  shipping charges
• See Table 10.2 for full list of
  benefits/limitations

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Retailing as Theater

• Competition for customers is becoming intense as
  nonstore alternatives multiply
• Malls gain loyalty by appealing to social motives
  (malls as town squares)
• Retail theming techniques
• Landscape themes
• Marketscape themes
• Cyberspace themes
• Mindscape themes

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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

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Atmospherics

• Conscious designing of space and its dimensions
  to evoke certain effects in buyers
• Colors/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

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In-Store Decision Making

• Store displays are a major information source to
  decide to buy
• Marketers engineer purchase environments to
  increase consumer contact at time of decision
  making
• Drinks invigoration team share of throat

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Spontaneous Shopping

• Unplanned buying vs. impulse buying
• Sonys Everquest II videogame has command that
  takes gamers to the Pizza Hut Web site!
• Wider aisles with highest profit margins to
  encourage browsing
• Portable shopper in grocery stores
• Planners vs. partial planners vs. impulse
  purchasers

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Point-of-Purchase Stimuli

• POP can be an elaborate product display or
  demonstration, a coupon-dispensing machine, or
  even someone giving out free samples
• Wal-Marts own in-store TV Network
• Timex watch sitting in bottom of aquarium
• Tower Records music sampler

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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?

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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?

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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

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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?

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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 cant
  deliver!
• Product failure marketers must reassure
  customers with honesty of problem

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Customer Expectation Zones

• Figure 10.6

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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

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Discussion

• Is the customer always right? Why or why not?

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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

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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

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Disposal Options

• Reasons for product replacement
• Desire for new features
• Change in consumers environment
• Change in consumers 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

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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 Garcias guitar!
• Divestment rituals
• Iconic transfer
• Transition-place
• Ritual cleansing
• Internet has revolutionized lateral cycling

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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