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Consumer Shopping Overview
Consumer Shopping Overview
RetailingMKTG 3346
Professor Edward Fox
Cox School of Business/SMU
Factors Driving Consumer Shopping Behavior
Needs Social group Family size Occupation
Price Sensitivity Disposable income Opportunity cost of time
Location and Retail Density
Shopping Behavior Depends on the Product
High-Involvement, Detailed Process Buying a Durable – Car, Computer, Home High Risk, Uncertainty
Moderate Problem Solving Some Prior Buying Experience Relatively Infrequent Purchase May Be Impulse Purchase
Habitual Decision Making Frequent Shopping Store, Brand Loyalty Drives Purchase
Low involvement,Low price,Low risk,High frequency
High involvement,High price,High risk,Infrequent
Shopping Behavior ExamplesAPPAREL
Moderate Price High involvement for some; low for others
Shopping Product Consumers likely to shop around Evaluate both quality and price Image?
Experience Good – Touch it; try it on Less likely to buy online or by catalog Interaction with salesperson may affect
Browsers or goal (i.e., purchase) oriented shoppers? Mall locations facilitate browsing and search
Shopping Behavior ExamplesMOVIE
Low Price Low involvement?
Experience good Prerelease advertising Quality assessment
ActorsReviews
Location Multiplexes
Many screensDifferent start times
Are movies cross-shopped with other forms of Are movies cross-shopped with other forms of entertainment?entertainment?
Shopping Behavior ExamplesINSURANCE
High Price High involvement?
Unsought Product Consumers may avoid the subject Don’t want to think about it, so don’t give it much attention
Credence Product Inertia Hard to get customers to switch Primary interaction with provider may be billing
Triggered by events (bad stuff happened) Regret
Outlet % Shopping Number of Weekly
Weekly Trips Spending
Supermarkets 100 2.4 $ 72.82
General merchandise 68 1.3 32.53discount stores
Fast-food restaurants 65 1.9 16.32
Drug stores 39 1.2 18.70
Convenience stores 37 2.4 19.72
Wholesale clubs 27 1.7 75.12
Specialty food stores 9 1.0 23.70
Source: “Consumers Are Skeptical Again,” “63rd Annual Report of the Grocery Industry,” Progressive Grocer, April 1996, p.42.
Shopping Behavior Depends on Retail Format
How Retailers Affect Need Recognition STIMULATING TRAFFIC AND SALES
Out-of-StoreAdvertisingDirect mail
In-StoreVisual merchandising
SignageDisplays
Suggestions by sales associates
In-store merchandising and selling can generate In-store merchandising and selling can generate unplanned, or impulse, purchasesunplanned, or impulse, purchases
Adapted from Levy and Weitz
Factors Affecting Information Search
Customer Characteristics Experience with the product/category Perceived risk Time pressure
Product Characteristics Complexity Cost Risk
Category Characteristics Number of alternatives Meaningful differences between products
Adapted from Levy and Weitz
How Retailers Reduce Information Search KEEPING CUSTOMERS IN THE STORE
ProductExtensive merchandise assortment Ease in locating alternatives (cross merchandising)Useful information from sales associates
PriceEveryday low pricing; price matchingLoyalty incentives; volume discounts; card programs
Adapted from Levy and Weitz
Evaluating a Product for Purchase
Information used in buying a men’s suitInformation used in buying a men’s suit
Source: Levy and Weitz
Between Purchase Intent and the Purchase
Purchase IntentionDesire to buy the most preferred brand/product
Purchase IntentionDesire to buy the most preferred brand/product
Product ChoiceChoice of the store/brand/product
Product ChoiceChoice of the store/brand/product
In-store Merchandising
Social Factors
Intention to buy does not always result in purchaseIntention to buy does not always result in purchase
Buyer’s Decision ProcessPOST-PURCHASE BEHAVIOR
Consumer’s Expectations of Value
Dissatisfied Customer!
Dissatisfied Customer!
Satisfied Customer!
Satisfied Customer!
Perceived Value
Adapted from Prentice Hall
Retailers must deliver on the promise of value, Retailers must deliver on the promise of value, or lose repeat business – customer loyalty!or lose repeat business – customer loyalty!