Consumer Behavior Finals (BSBA 21) .ppt
- 1. Chapter 19 Consumer Behavior, Electronic Commerce, and Channel Strategy Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
- 2. 19-2 What is consumer behavior? Study of individuals, groups, or organizations and their decision-making processes for acquiring goods and services.
- 3. 19-3 Factors Influencing Consumer Behavior: Psychological Factors: Motivation, perception, learning, beliefs, and attitudes. Social Factors: Family, reference groups, social roles, and status. Cultural Factors: Culture, subculture, and social class. Personal Factors: Age, occupation, lifestyle, economic situation, and personality.
- 4. 19-4 Consumer Decision-Making Process: • Problem recognition • Information search • Evaluation of alternatives • Purchase decision • Post-purchase behavior
- 5. 19-5 A distribution channel refers to the path or route through which goods and services flow from the producer or manufacturer to the final consumer. Introduction
- 6. 19-6 Types of Distribution Channels: • Direct: Selling directly to the consumer (e.g., through company websites). • Indirect: Using intermediaries such as retailers or wholesalers. • Hybrid: Combining direct and indirect channels. Introduction
- 9. 19-9 Store image Is what consumers think about a particular store. Includes perceptions and attitudes based on sensations of store-related stimuli received through the five senses. Developing a consistent store image is a common goal of retailers. Store-Related Affect and Cognition
- 11. 19-11 Store atmosphere Primarily involves affect in the form of in-store emotional states that consumers may not be fully conscious of when shopping. Environmental stimuli affect consumers’ emotional states, which in turn affect approach or avoidance behaviors. The four types of approach or avoidance behaviors are physical, exploratory, communication, and performance and satisfaction approach. Store-Related Affect and Cognition (cont.)
- 12. 19-12
- 13. 19-13 Environmental stimuli influence emotional states (pleasure, arousal), which drive approach or avoidance behaviors like spending more time or money. A Model of Store Atmosphere Effects
- 14. 19-14 Store Atmosphere (cont.) Pleasure and arousal were found to influence consumers’ state: Enjoyment of shopping in the store. Time spent browsing and exploring the store’s offerings. Willingness to talk to sales personnel. Tendency to spend more money than originally planned. Likelihood of returning to the store.
- 15. 19-15 Store contact Involves the consumer locating, traveling to, and entering a store. A number of variables are concerned with obtaining store contacts. Store location decisions are strongly influenced by heavy traffic and pedestrian patterns, which facilitate store contact. Visibility of the store and its distance from consumers are used to select locations that can increase store contact. Store-Related Behavior
- 17. 19-17 Store loyalty Repeat patronage intentions and behavior. Strongly influenced by the arrangement of the environment, particularly the reinforcing properties of the retail store. Is a major objective of retail channel strategy and has an important financial impact. Store-Related Behavior (cont.)
- 18. 19-18 Store Environment Three major decision areas in designing effective store environments: Store location Store layout In-store stimuli
- 19. 19-19 Store Location Good locations allow ready access, can attract large numbers of consumers, and can significantly alter consumer shopping and purchasing patterns. Store location decisions represent long-term financial commitments, and changing poor locations can be difficult and costly. Retail location models are quite sophisticated and can deal with a variety of criteria.
- 20. 19-20 Store Location (cont.) General approaches to selecting store location Checklist method - A systematic evaluation of potential sites based on a list of predefined criteria. Analog approach - Identifies an existing store or stores similar to the one planned and uses their performance data to evaluate potential sites.
- 21. 19-21 Store Location (cont.) Regression models - A statistical approach that uses historical data to identify factors affecting store performance and predicts the success of potential sites. Commonly used to investigate the factors that affect the profitability of retail outlets at particular sites. Location allocation models - Involve the simultaneous selection of several locations and estimation of demand at those locations to optimize some specified criteria.
- 22. 19-22 Store Layout Grid layout The grid layout is more likely to be used in department and specialty stores to direct customer traffic down the main aisles. Free-form layout This arrangement is particularly useful for encouraging relaxed shopping and impulse purchases.
- 23. 19-23 Examples of Grid and Free-Form Store Layouts
- 24. 19-24 Advantages and Disadvantages of Grid and Free-Form Layouts
- 25. 19-25 In-Store Stimuli Signs and price information Benefit sign Price-only sign Color Warm colors Cool colors Shelf space and displays Normal display, expanded display, and special display
- 26. 19-26 In-Store Stimuli (cont.) Music The tempo of background music influences consumer behavior Scent Scents vary in terms of how pleasant they are perceived to be, how likely they are to evoke physiological responses, and how strong they are. Ambient scent can influence feelings about stores and their products. Neutral and pleasant scent categories can be diffused in a store to influence consumers.
- 27. 19-27 Nonstore Consumer Behavior Consumer purchase mode refers to the method a consumer uses to shop and purchase from store or nonstore alternatives. Choices made among the various consumer purchase modes are influenced by many factors.
- 28. 19-28 Catalog and Direct Mail Purchases Have grown dramatically with the increase in dual-income families and the general need for consumers to save time. Catalogs have some disadvantages for consumers. Catalog prices are higher and consumers have to pay shipping charges. Do not allow the consumer to experience the feel, fit, or other sensory stimuli of a product directly.
- 29. 19-29 Catalog and Direct Mail Purchases (cont.) Waiting time to receive merchandise. Unsatisfactory product returned at consumer’s own expense.
- 30. 19-30 Vending Machine Purchases Provide merchandise in convenient locations and are often available for purchases twenty-four hours a day. Product prices are typically higher. Recovery of money may not be possible when vending machines fail to deliver the merchandise.
- 31. 19-31 Television Home Shopping Allows consumers to purchase conveniently from their homes by telephone and can offer and demonstrate products. It also allows better visual display than catalogs. Limitations: Consumers must watch the channel when the merchandise is offered. Consumers must pay shipping charges Less informative than experiencing products directly in stores.
- 32. 19-32 Direct Sales Purchases Salespeople can provide in-depth product usage information. Merchandise is often priced higher than similar merchandise in stores. Consumers’ must spend time watching the demonstration and discussing products. Pressure by overzealous salespeople to purchase unneeded products.
- 33. 19-33 Electronic Exchanges Involve consumers in collecting information, shopping, and purchasing from Web sites. Is the fastest growing purchase mode.
- 34. 19-34 A Comparison of Six Consumer Purchase Modes
- 35. 19-35 Summary Channels of distribution have a very important impact on consumer affect, cognition, and behavior. The two most critical store-related affect and cognitions for channel strategy are store image and store atmosphere. The store-related behaviors, store contact and store loyalty, are primary objectives of retail channel strategy.
- 36. 19-36 Summary (cont.) Store environment entails store location, store layout, and in-store stimuli. The six consumer purchase modes include stores, catalogs/direct mail, vending machines, direct sales, TV home shopping, and electronic exchange. It is the consumer and their relationships with other criteria that determine appropriate channel strategy.
- 37. 19-37 QUIZ: TRUE OR FALSE 1. Store image is determined by the consumer's perception of store-related stimuli received through the five senses. 2. Free-form store layouts discourage impulse purchases and promote quick shopping. 3. Catalog shopping usually has lower prices and no shipping charges compared to in-store shopping. 4. Regression models are used to predict the success of store locations based on historical data. 5. Music tempo in stores does not influence consumer behavior.
- 38. 19-38 QUIZ: TRUE OR FALSE 6. In-store stimuli, such as expanded displays, can encourage consumers to spend more time and money in the store. 7. Vending machine purchases are always cost-effective for consumers. 8. Store loyalty is a key objective of retail channel strategy because it has a financial impact. 9. Electronic exchanges are declining in popularity as a consumer purchase mode. 10. Checklist methods and regression models are two common approaches to store location decisions.
- 39. 19-39 QUIZ: IDENTIFICATION 11. The study of individuals, groups, or organizations and their decision-making processes for acquiring goods and services. 12. A distribution channel where goods are sold directly to the consumer, such as through company websites. 13. The layout used in department stores to direct customer traffic efficiently. 14. The systematic evaluation of potential store locations based on predefined criteria. 15. The purchase mode that allows consumers to shop using catalogs and direct mail.
- 40. 19-40 QUIZ: IDENTIFICATION 16. The term for consumers returning to a store repeatedly due to positive experiences. 17. The consumer behavior influenced by environmental stimuli like scent, music, and lighting. 18. The purchase mode that enables consumers to buy products from vending machines available 24/7. 19. The emotional states influenced by store atmosphere, driving approach or avoidance behaviors. 20. The channel that combines both direct and indirect distribution methods.