Docstoc

Consumers Rule

Document Sample
Consumers Rule Powered By Docstoc
					   Buying
and Disposing

  Chapter 10
     Situational Effects on Consumer
                 Behavior
• A consumer’s choices are affected by many
  personal factors…and the sale doesn’t end at
  the time of purchase

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


 Figure 10.1
                                                           10-2
  Situational Effects on Consumer
          Behavior (Cont’d)
• 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?”)
                                   10-3
    Situational Effects on Consumer
            Behavior (Cont’d)
• Market segmentation strategies position products
  for important usage situations

Table 10.1 (Abridged)
                 Young Children          Adult Women
                                                             Benefits/
Situation    Fair Skin   Dark Skin   Fair Skin   Dark Skin   Features
Beach          Combined insect         Summer perfume        Windburn
sunbathing        repellent                                  protection
Snow                                    Winter perfume       Antifreeze
skiing                                                        formula



                                                             10-4
 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

                                    10-5
          Temporal Factors
• “Time is money!”
• Careful information
  search/deliberation =
  luxury of time
• Scooping up anything
  left on shelves = last-
  minute gift


                             10-6
               Economic Time
• Time = economic variable
  – Timestyle: consumers try
    to maximize satisfaction
    by dividing time among
    activities/tasks
  – Perception of time poverty
     • One-third of 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
                                           10-7
             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
                                                 10-8
   Psychological Time (Cont’d)
• 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
                                         10-9
          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

                                                     10-10
         Dimensions of Arousal




Figure 10.3

                                 10-11
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!



                                           10-12
        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

                                          10-13
 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

LANDS’ END VIRTUAL MODELTM
                                                      10-14
           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
                                    10-15
                    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


                                           10-16
                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

                                        10-17
    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”

                                 10-18
      Spontaneous Shopping
• Unplanned buying vs. impulse buying
  – Sony’s 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

                                         10-19
     Point-of-Purchase Stimuli
• POP: can be an elaborate
  product display or
  demonstration, a coupon-
  dispensing machine, or
  even someone giving out
  free samples
  – Wal-Mart’s own in-store
    TV Network
  – Timex watch sitting in
    bottom of aquarium
  – Tower Records music
    sampler                   10-20
             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?

                                                       10-21
                 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?

                                               10-22
    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
       CLICK ON LOGO TO SEE
         VIDEO CLIP ABOUT
             SUBARU’S
          POSTPURCHASE
       SATISFACTION EFFORTS

                                          10-23
 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”?
                                     10-24
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
                                              10-25
  Customer Expectation Zones
• Figure 10.6




                         10-26
       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            PLANETFEEDBACK.COM


                                                   10-27
              Discussion
• Is the customer always right? Why or why
  not?




                                    10-28
    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



                                                10-29
           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
                                FREECYCLE.ORG
  – Keep old item
  – Temporarily dispose of it
  – Permanently dispose of it
                                            10-30
             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

                   SECONDHARVEST.ORG
                                                10-31
 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                         eBay.
   – Ritual cleansing                         com

• Internet has revolutionized lateral cycling
                                                      10-32
                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



                                          10-33

				
DOCUMENT INFO