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Chapter 17:Outlet Seldection and Purchase Perceived risk associated with purchases Social cost Financial cost Time cost Effort cost Physical cost

Chapter 17:Outlet Seldection and Purchase

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Chapter 17:Outlet Seldection and Purchase. Perceived risk associated with purchases Social cost Financial cost Time cost Effort cost Physical cost. Outlet Choice vs. Product Choice. Outlet first, brand second Brand first, outlet second Simultaneous decisions. Impulse Purchase. - PowerPoint PPT Presentation

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Page 1: Chapter 17:Outlet Seldection and Purchase

Chapter 17:Outlet Seldection and Purchase

Perceived risk associated with purchases

• Social cost

• Financial cost

• Time cost

• Effort cost

• Physical cost

Page 2: Chapter 17:Outlet Seldection and Purchase

Outlet Choice vs. Product Choice

• Outlet first, brand second

• Brand first, outlet second

• Simultaneous decisions

Page 3: Chapter 17:Outlet Seldection and Purchase

Impulse Purchase

- “buying action undertaken without a problem having been previously recognized or a buying intention formed prior to entering the store.”

- It may be described as a choice made on the spur of the moment because of a strong positive feeling regarding the object.

- How frequent are impulse purchases?

Page 4: Chapter 17:Outlet Seldection and Purchase

Supermarket Decisions: Two-thirds Are Made In-Store

53

3

18

26

60

4

6

30

0 10 20 30 40 50 60 70

SupermarketsMass merchandisers

Specifically planned

Generallyplanned

Substitute

Unplanned

Page 5: Chapter 17:Outlet Seldection and Purchase

In-Store Influences that Impact Alternative Evaluation and Purchase

Alternative evaluation

Price reduction

s

Sales personnel

Stockouts

Displays

Store layout/atmosphere

Modify intended purchase behavior

Page 6: Chapter 17:Outlet Seldection and Purchase

Store Atmosphere and Shopper Behavior

Ambient ConditionsTemperature • Air quality •

Noise • Music • Odor

Physical ConditionsLayout • Equipment • Colors •

Furnishings • Space

Social ConditionsCustomer characteristics •

Number of customers • Sales force characteristics

SymbolsSigns • P-O-P displays •

Decor style

Sales PersonnelCareer objectives • Training • Personal

situation • Social class • Stage in HLC

ConsumersLifestyle • Shopping orientation • Stage in

HLC • Situation

ConsumersEnjoyment • Time in store •

Items examined • Information acquired •

Purchases • Satisfaction

Sales PersonnelMood • Effort •

Commitment • Attitude • Knowledge • Skill

Store Atmosphere Individual Characteristics Response

Page 7: Chapter 17:Outlet Seldection and Purchase

Impact of a Stockout Situation

Another brand/same store

Delay purchase

Forgo purchase

Same brand/another store

Negative original store WOM

Positive new store WOM

Positive new brand WOM

Original store attitude reduction

New store attitude increase

New brand attitude increase

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