1 / 33

JM602 Consumer Behaviour

JM602 Consumer Behaviour. Lecture 6 – Outlet selection and purchase. Material in these slides. Primarily drawn from: Neal, Quester and Hawkins (2005). Consumer behaviour: Implications for marketing strategy (4 th ed). McGraw-Hill Irwin: Queensland. Today’s lecture.

miette
Download Presentation

JM602 Consumer Behaviour

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. JM602Consumer Behaviour Lecture 6 – Outlet selection and purchase

  2. Material in these slides • Primarily drawn from: • Neal, Quester and Hawkins (2005). Consumer behaviour: Implications for marketing strategy (4th ed). McGraw-Hill Irwin: Queensland

  3. Today’s lecture • What evaluative criteria do consumer use when choosing a retail outlet? • What consumer characteristics influence the criteria used? • What in-store characteristics affect the amounts and brands purchased? • How is the retail environment changing in response to the on-line challenge?

  4. Outlet Choice vs Product Choice 1. Brand (or item) first, outlet second 2. Outlet first, brand second 3. Brand and outlet simultaneously

  5. Marketing Strategy Based on the Consumer Decision Sequence

  6. Use of Advertising to Create Brand Demand and Direct Consumers to Outlets

  7. The Retail Scene • Retail outlet: • any source of products or services for consumers • In stores • Other outlets, non-store outlets

  8. Internet Retailing

  9. Characteristics of Online Consumers

  10. Reasons for not Purchasingon the Internet

  11. What attributes affect retail outlet selection? (evaluative criteria) • Store’simage: • A consumer’s or a target market’s perception of all the attributes associated with a retail outlet

  12. Merchandise Service Clientele Physical features Convenience Promotion Atmosphere Institutional Post-transaction Quality, selection, style, price Lay-by plan, sales personnel Customers Cleanliness, store layout, ease Location, parking advertising Congeniality, fun, excitement Store reputation Satisfaction Dimensions and components of store image

  13. Store brand quality • Store brands___ manufacturer’s brands • Key success factors for store brands: • High quality • Reasonable price • Stressing quality over price may be particularly beneficial if brand carries store’s name

  14. Retail advertising • Advertising is an important factor in outlet selection • Price advertising may be particularly important • Retailers face 3 key questions • How large a price discount? • Should reference/comparison be used? • What words should accompany the price information?

  15. Expenditure of Individuals Drawn to a Store by an Advertised Item

  16. Si / Til Outlet Location and Size: Retail Attraction Model MSi MSi = market share of store i Si= size of store i (or mall) Ti = travel time to i l= attraction factor for a particular product category = n S i= 1 Si / Til

  17. Consumer Characteristics and Outlet Choice • Shopping orientation

  18. Shoppers – perceived risk • Perceived risk • Financial risk • Social risk

  19. Financial and Social Risks forVarious Types of Products

  20. In-Store Influences that Impact on Evaluation of Alternatives, and Purchase

  21. In-store Influences that Alter Brand Choices • The nature of unplanned purchases: • Function of processing information in store, or • Completely unplanned decision • Reminder purchases or • Impulse purchases • Point of purchase displays

  22. In-Store Buying Habits

  23. Shopper Purchase Behaviour Insert table 6.8

  24. Price reductions and promotional deals • Are almost always accompanied by use of some POP materials • In-store price reductions do appear to affect brand decisions • Sharp increase in sales when price is first reduced, followed by return to near-normal sales over time or after price reduction ends

  25. Price reductions • Sales increases from price reductions come from: • Brand users stockpiling ahead of time (and using more) • Users of competing brands switching • Non-product category buyers – because the brand now has superior value to the substitute • Customers who do not normally come to the store

  26. Store layout • Physical location of items in the store

  27. Store Atmosphere and Shopper Behaviour

  28. Shopper Behaviour in Response to Frequent Stock-outs

  29. Impact of Stockout Situation

  30. Additional in-store influences • Sales personnel: • Salesperson’s knowledge, skills & authority • Nature of customer’s buying task • Customer-sales person relationship • Purchase: • Businesses need to simplify the purchase process • First and last impressions are important

  31. Next Lecture… Postpurchase Processes,Customer Satisfaction andConsumer Loyalty

More Related