Copyright 2008 Pearson Education Canada

Buyingand Disposing

Chapter 10

Copyright 2008 Pearson Education Canada

10-2Copyright 2008 Pearson Education Canada

Situational Effects on Consumer Behaviour

• A consumer’s choices are affected by many personal factors…and the sale doesn’t end at the time of purchase

Antecedent States

• Situational Factors• Usage Contexts• Time Pressure• Mood• Shopping

Orientation

PurchaseEnvironment

• Shopping Experience

• Point-of-Purchase Stimuli

• Sales Interactions

PostpurchaseProcesses

• Consumer Satisfaction

• Product Disposal• Alternative

Markets

Figure 10.1

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Situational Effects on Consumer Behaviour (Cont’d)

• Consumption situation– Situational effects can be

behavioural 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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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

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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 Canadians 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 (Cont’d)• Experience of time results from

culture– Linear separable 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 Emotional States

Figure 10-2

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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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Shopping Types

• Economic consumer

• Personalized consumer

• Ethical consumer

• Apathetic consumer

• Recreational shopper

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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 (Eddie Bauer)

• Limitations: security/identity theft, actual shopping experience, large delivery/return shipping charges

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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 “mini-amusement parks”)– 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– Colours/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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Spontaneous Shopping

• Unplanned buying vs. impulse buying– 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– Elizabeth Arden computer makeover system– Timex watch sitting in bottom of aquarium– Tower Records music sampler– Kellogg’s Corn Flakes sound button in stores

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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 can’t deliver!

• Product failure: marketers must reassure customers with honesty of problem

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Managing Quality Expectations

Figure 10.4

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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 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

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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 Garcia’s 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