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Chapter 17

decisuon making process

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6 views47 pages

Chapter 17

decisuon making process

Uploaded by

minh châu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Consumer Behavior

Chapter 17
Outlet Selection and Purchase

Based on Consumer Behavior, 13th ed. By Hawkins, Mothersbaugh and Best


Learning Objectives

1. Describe how retailing is evolving.


2. Discuss the relationship among retail outlets as part of
omni-channel shopping.
3. Explain the retail and consumer attributes that affect
outlet selection.
4. Summarize the in-store and online influences on brand
choice.
5. Understand how purchase plays a role in the shopping
process.
The Evolving Retail Scene

• Internet Shopping
• Adoption of eCommerce Channel
• Mobile Retailing
• Store-based Retailing

Source: Data Reporter


The Evolving Retail Scene
Consumers shop online for various reasons,
with price and convenience topping the list
The Evolving Retail Scene

Source: Data Reporter


Barriers to Internet Shopping
Barriers to Internet Shopping
Mobile Retailing

Source: Data Reporter


Mobile Retailing
Mobile Retailing
Store-based Retailing
Store-based Retailing

In-store shopping is perceived as neither fun nor an efficient


use of time by many customers.
à Retailers are trying to enhance the experiential component
of their stores through layout, music, personal shoppers, etc.
Store-based Retailing

CLICK HERE TO WATCH VIDEO


Omni-Channel Retailing for the
Omni-Channel Shopper

Consumers are increasingly likely to be omni-channel shoppers—


consumers who browse and/or purchase using multiple channels.
• use a mobile app looking for deals & coupons at store;
• or search the Internet at home to get more information
about the product and then buy it at a store;
• or order the product online and pick it up in the store.
Omni-Channel Shopping Behaviors

• Webrooming: shoppers
search online and ultimately
buy a product at a physical
store.
• Showrooming is the opposite.

Question: Would you classify


yourself as someone who
engages in webrooming or
showrooming?
Omni-Channel Retailing Strategies

• Design the physical store to look like a “showroom”


• Educate employees
• Provide price comparisons in-store
• Provide in-aisle checkout service
Omni-Channel Retailing Strategies
Omni-Channel Retailing Strategies

CLICK HERE TO WATCH VIDEO


Attributes Affecting Retail Outlet Selection

• Outlet image
• Retailer brands
• Retail advertising
• Outlet location and size
Attributes Affecting Retail Outlet Selection
Attributes Affecting Retail Outlet Selection
Attributes Affecting Retail Outlet Selection

Outlet Image

Designer collections
are one way retailers
can enhance their
image and position
their stores
appropriately for
their target
customers
Attributes Affecting Retail Outlet Selection

Outlet Image

Other outlets focus on more functional attributes.

Focus on breadth of Focus on convenience:


merchandise and price easy access, extended
hours, quick service
Attributes Affecting Retail Outlet Selection

Retailer Brands

• Closely related to store image


are store brands; the store or
outlet is the brand.
• The key to success of store
brands: high quality at a
reasonable price
Decathlon focuses on producing a wide range of high-
quality, affordable sportswear and sporting goods under
its own brand names (Quechua for outdoor gear and
Kalenji for running gear)
Attributes Affecting Retail Outlet Selection

Retailer Advertising
Attributes Affecting Retail Outlet Selection

Retailer Advertising
Price advertising
• Size of discount
• Reference/comparison may be used
A reference price is a price with which other prices are
compared
• Words accompanying the price information

Question: Should we use “50% off” or “buy 1 get 1”?


Attributes Affecting Retail Outlet Selection

Outlet Location and Size

• If all other things are approximately equal, the consumer


generally will select the closest store
• Customers tend to prefer larger outlets over smaller outlets
• The retail attraction model, also called the retail gravitation
model, is used to calculate the level of store attraction based on
store size and distance from the consumer.

Question: Why do some supermarkets also have pharmacies?


Consumer Characteristics and Outlet Choice

Perceived risk – Applications into Retailing Strategy

• Social cost (e.g., a hairstyle that is not appreciated by one’s peers).


• Financial cost (e.g., an expensive pair of shoes that become too
uncomfortable to wear).
• Time cost
• Effort cost (e.g., a USB flash drive that is loaded with several hours
of work before it fails).
• Physical cost (e.g., a new medicine that produces a harmful side
effect).
Consumer Characteristics and Outlet Choice

Perceived risk
Group Discussion – 10 minutes

What should retailers do to reduce these risks?


Explain with 3 real-life examples.
In-Store and Online Influences
on Brand Choice
In-Store and Online Influences
on Brand Choice

Unplanned purchases: purchases made in a retail outlet that are


different from those the consumer planned to make prior to entering
that retail outlet

• Reminder purchase
• Impulse purchase
In-Store and Online Influences
on Brand Choice
In-Store and Online Influences
on Brand Choice
In-Store and Online Influences
on Brand Choice
Point-of-Purchase Materials

Point-of-purchase
displays such as these
Nestlé displays, are
effec8ve across cultures
In-Store and Online Influences
on Brand Choice
Price Reductions and Promotional Deals
In-Store and Online Influences
on Brand Choice
Outlet Atmosphere
• Store atmosphere influenced by such attributes as lighting,
layout, presentation of merchandise, fixtures, floor coverings,
colors, sounds, odors, and the dress and behavior of sales and
service personnel (see Chapter 13).
• Atmosphere is referred to as servicescape when describing a
service business such as a hospital, bank, or restaurant.
• Internet retailers also have online atmospheres: graphics,
colors, layout, content, entertainment features, interactivity,
tone, and so forth.
Outlet Atmosphere
In-Store and Online Influences
on Brand Choice
Stockouts

Stockouts: the store being temporarily out of a particular brand


1. Substitution costs
2. Transaction costs
3. Opportunity costs
In-Store and Online Influences
on Brand Choice
Website Functioning and Requirements
In-Store and Online Influences
on Brand Choice
Website Functioning and Requirements

Online privacy concerns: consumer fears regarding how personal


information about them that is gathered online might be used.
In-Store and Online Influences
on Brand Choice
Mobile and Mobile Apps
In-Store and Online Influences
on Brand Choice
Mobile and Mobile Apps
Group Discussion – 10 minutes

Beyond what has been suggested in this chapter, can you


think of interesting ways that marketers could allow for
mobile phones to interact with elements of the store and
store shelf that would positively influence retail sales?
In-Store and Online Influences
on Brand Choice
Sales Personnel
Roles of Purchase in the Shopping Process

• Once the outlet and brand have been selected, the consumer
must acquire the rights to the item.
• This often involves credit.
• Whether purchasing is in-store, online, or via mobile or on
social media, the retailer’s job is to simplify the process
because it will enhance the likelihood of purchase and enhance
its image.

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