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Jan 29, 2016

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  • Chapter 10Buying and DisposingCONSUMER BEHAVIOR, 8e Michael Solomon

  • Chapter ObjectivesWhen you finish this chapter you should understand why:Many factors over and above the qualities of the product or service influence the outcome of a transaction. Factors at the time of purchase dramatically influence the consumer decision-making process. In addition to what a shopper already knows or believes about a product, information, a store, or Web site provides can strongly influence a purchase decision. A salesperson can be the crucial link between interest in a product and its actual purchase.

  • Chapter Objectives (cont.)Marketers need to be concerned about a consumers evaluations of a product after he buys it as well as before.Getting rid of products when consumers no longer need or want them is a major concern both to marketers and to public policy makers.

  • Issues Related to Purchase and Postpurchase ActivitiesA consumers choices are affected by many personal factorsand the sale doesnt end at the time of purchaseFigure 10.1

  • Situational Effects on Consumer Behavior (cont.)Consumption situationSituational effects can be behavioral or perceptualWe tailor purchases to specific occasionsThe way we feel at a particular time affects what we buy or doDay Reconstruction Method Situational self-image (Who am I right now?)

  • Social and Physical SurroundingsAffect a consumers motives for product usage and product evaluationDcor, odors, temperatureCo-consumers as product attributeLarge numbers of people = arousalInterpretation of arousal: density versus crowdingType of consumer patrons

  • Temporal FactorsEconomic timeTime style: consumers try to maximize satisfaction by dividing time among tasksTime povertyOne-third of Americans feel rushedMarketing innovations allow us to save timePolychronic activity/multitasking

  • Temporal Factors (cont.)Psychological time: consumers perception of timeFluidity of time (subjective experience)Time categories relevant to marketersGood times for ads: occasion/leisure times and time to killBad times for ads: flow and deadline timesTime perspective metaphorsTime is a pressure cookerTime is a mapTime is a mirrorTime is a riverTime is a feast

  • Temporal Factors (cont.)Experience of time results from cultureLinear separable timeProcedural timeCircular/cyclic timeQueuing theory: mathematical study of waiting linesWaiting for product = good qualityToo much waiting = negative feelingsMarketers use tricks to minimize psychological waiting time

  • Drawings of TimeFigure 10.2

  • The Shopping EnvironmentAntecedent states: mood/physiological condition influences what we buy and how we evaluate productPleasure and arousalMood = combination of pleasure and arousalHappiness = high in pleasantness and moderate in arousalMood biases judgments of products/servicesMoods are affected by store design, music, TV programsReasons for shopping:Hedonic reasons include:Social experiencesVary by product category, store type, and cultureSharing of common interestsInterpersonal attractionInstant statusThe thrill of the hunt

  • Dimensions of Emotional StatesFigure 10.3

  • Prentice-Hall, cr 200910-*Reasons for ShoppingReasons for shopping:Vary by product category, store type, and cultureHedonic reasons include:Social experiencesSharing of common interestsInterpersonal attractionInstant statusThe thrill of the hunt

  • Prentice-Hall, cr 200910-*E-Commerce: Clicks versus BricksE-commerce reaches customers around the world, but competition increases exponentiallyBenefits: good customer service, technology value Limitations: security/identity theft, actual shopping experience, large delivery/return shipping chargesClick photo for Bluefly.com

  • Prentice-Hall, cr 200910-*DiscussionWill e-commerce eventually replace traditional brick-and-mortar retailing? Why or why not?What are the benefits that traditional retail stores provide that e-commerce cannot provide?

  • Prentice-Hall, cr 200910-*Retailing as TheaterCompetition for customers is becoming intense as nonstore alternatives multiplyMalls gain loyalty by appealing to social motives Retail techniques:Landscape themesMarketscape themesCyberspace themesMindscape themes

  • Prentice-Hall, cr 200910-*Store ImageStore image: personality of the store Location + merchandise suitability + knowledge/congeniality of sales staffSome factors in overall evaluation of a store:Interior designTypes of patronsReturn policiesCredit availability

  • Prentice-Hall, cr 200910-*FedEx MakeoverBEFOREAFTER

  • Prentice-Hall, cr 200910-*DiscussionThe 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?

  • Prentice-Hall, cr 200910-*FedEx Brand Image: Brand Position

  • Prentice-Hall, cr 200910-*AtmosphericsAtmospherics: conscious designing of space and dimensions to evoke certain effects Colors/lighting, scents, and sounds/music affect time spent in store and spending Activity storesBuild-A-Bear Workshop Club Libby LuViking Home Chef and Viking Culinary Academy Click for Buildabear.com

  • Prentice-Hall, cr 200910-*In-Store Decision MakingSpontaneous shopping consists of:Unplanned buying: reminded to buy somethingImpulse buying: sudden, irresistible urge to buyPoint-of-purchase (POP) stimuli: product display or demonstration that draws attentionMusic store CD sampler, Elizabeth Arden computer and video makeover systemSalesperson create exchange processCommercial friendships

  • Prentice-Hall, cr 200910-*Image of an Impulse BuyerFigure 10.4

  • Prentice-Hall, cr 200910-*DiscussionWhat qualities seem to differentiate good and bad salespeople?In what retail outlets do you tend to find good salespeople? Why?

  • Prentice-Hall, cr 200910-*Postpurchase SatisfactionPostpurchase satisfaction or dissatisfaction is determined by attitude about a product after purchaseMarketers constantly on lookout for sources of consumer dissatisfactionUnited Airlines United Rising campaign

  • Prentice-Hall, cr 200910-*Quality Is What We Expect It to BeExpectancy disconfirmation mode: consumers form beliefs of product quality based on prior performanceMarketers should manage expectationsDont promise what you cant deliverWhen product fails, marketers must reassure customers with honesty

  • Prentice-Hall, cr 200910-*Customer Expectation ZonesFigure 10.5

  • Prentice-Hall, cr 200910-*Acting on DissatisfactionThree ways consumers can act on dissatisfaction:Voice response: appeal to retailer directlyPrivate response: express dissatisfaction to friends or boycott storeThird-party response: take legal action Click photo for Planetfeedback.com

  • Prentice-Hall, cr 200910-*TQM: Going to the GembaHow people actually interact with their environment in order to identify potential problemsGemba: the one true source of informationNeed to send marketers/designers to the precise place of product consumptionHost Foods study in airport cafeterias

  • Prentice-Hall, cr 200910-*Going to the GembaFigure 10.6

  • Prentice-Hall, cr 200910-*Product DisposalStrong product attachment = painful disposal processEase of product disposal is now a key product attribute to consumersDisposal options (see next slide)

  • Prentice-Hall, cr 200910-*Consumers Disposal OptionsFigure 10.7

  • Prentice-Hall, cr 200910-*Lateral Cycling: Junk versus JunqueLateral cycling: already purchased products are sold to others or exchanged for still other thingsFlea markets, garage sales, classified ads, bartering for services, hand-me-downs, etc.Divestment rituals:Iconic transfer: taking photos of objects before selling themTransition-place: putting items in an out-of-the-way location before disposing of themRitual cleansing: washing, ironing, and/or meticulously wrapping the item

  • Prentice-Hall, cr 200910-*Lateral Cycling (cont.)Underground economy: includes resale of used products through flea markets, Internet sites such as eBay, etc.Internet has revolutionized lateral cycling process Click for eBay.com

  • Prentice-Hall, cr 200910-*DiscussionInterview people who have sold items at a flea market or garage saleAsk them to identify some items to which they had a strong attachmentSee if you can prompt them to describe one or more divestment rituals they went through as they prepared to offer these items for sale

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