Buying and Disposing: Consumer Behavior

Buying and Disposing
Consumer Behavior
Buying, Having, and Being
10 - 1
Situational Effects on Consumer Behavior

Consumption Situation:
Factors beyond characteristics of the person and of the product that influence the buying and/or using of products and services
Situational Self-Image:
The role a person plays at any one time.
10 - 2
Factors Influencing Behaviour

CULTURE Culture Subculture Social class
SOCIAL PERSONAL PSYCHOLOGICAL
Buyer
Reference Groups Family Roles & Status
Age/lifecycle stage Occupation Education Lifestyle Personality/ self-concept Economic circumstances
Motivation Perception Learning Beliefs and attitudes
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Purchase and Postpurchase Issues
10 - 4
Situation Influences Choice

Clothing choices often are heavily influenced by the situation in which they need to be worn.
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Social and Physical Surroundings

Co-consumers:
Other patrons in the setting
Density
The actual number of people occupying a space
Crowding:
Exists only if a negative affective state occurs as a results of density
Temporal Factors:
Time Poverty: A consumers feeling that he or she is pressed for time
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Physical Environments
Many stores and services (like airlines) try to differentiate themselves in terms of the physical environments they offer, touting amenities such as comfort.
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Temporal Factors
Economic Time:
Time is an economic variable (i.e., it is a resource that must be allocated) Time Poverty: A consumers feeling that they are pressed for time
Psychological Time
Time Categories
Flow Time Occasion Time Deadline Time Leisure Time Time To Kill
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Time Poverty
Time poverty is creating opportunities for many new products (like portable soups) that let people multitask.
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Psychological Time
Linear Separable Time:
Events proceed in an orderly sequence and different times are well defined.
Procedural Time:
When people ignore the clock and do things when the time is right
Circular or Cyclic Time

Time is governed by natural cycles
Queuing Theory
The mathematical study of waiting in lines
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Antecedent States
If It Feels Good, Buy It Pleasure and Arousal:
Two dimensions which determine if a shopper will react positively or negatively to a consumption environment
Mood:
Some combination of pleasure and arousal Consumers give more positive evaluations when they are in a good mood Can be affected by store design, weather, or other factors specific to the consumer
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Dimensions of Emotional States
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Shopping: A Job or An Adventure?

Reasons for Shopping:
Shopping Orientation: General attitudes about shopping Hedonic Shopping Motives:
Social Experiences Sharing of Common Interests Interpersonal Attraction Instant Status The Thrill of the Hunt
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Customizing at Covergirl
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E-Commerce is changing the way people shop. Ecommerce sites like Bluefly give shoppers the option of shopping without leaving home. What products do you not feel comfortable buying online? Why?
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Retailing as Theater
Retail Theming The strategy of creating imaginative environments that transport shoppers into fantasy worlds or providing other kinds of stimulation.
Landscape themes Marketspace themes Cyberspace themes Mindscape themes
Store Image The personality of a store including the stores location, merchandise suitability, and the knowledge and congeniality of its sales staff. Atmospherics The conscious designing of space and its various dimensions to evoke certain effects in buyers.
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FedEx Brand Position
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In-Store Decision Making

Spontaneous Shopping
Unplanned buying: Occurs when a person is unfamiliar with a stores layout or when under some time pressure; or, a person may be reminded to buy something by seeing it Impulse buying: Occurs when the person experiences a sudden urge that cannot be resisted Impulse items: Items conveniently placed near a checkout
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Spontaneous Shopping
Smart retailers recognize that many purchase decisions are made at the time the shopper is in the store. Thats one reason why grocery carts sometimes resemble billboards on wheels.
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One Consumers Image of an Impulse Buyer
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Categorizing Shoppers by Advance Planning

Planners
Tend to know what products and specific brands they will buy beforehand.
Partial Planners
Know they need certain products, but do not decide on a specific brand until they are in the store
Impulse Purchasers
Do no advance planning
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Point-of-Purchase Stimuli
Point-of-Purchase Stimuli (POP)
An elaborate product display or demonstration, a coupon-dispensing machine, or someone giving out free samples Some more dramatic POP displays:
Timex Kelloggs Corn Flakes Dairy Milk, Orbit Trifles.
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Music Samplers
Music samplers that allow shoppers to check out the latest music tunes before buying have become a fixture in many stores.
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The Salesperson
Exchange Theory:
Every interaction involves an exchange of value.
Commercial Friendships:
When service personnel and customers form relationships
Identity Negotiation:
A relationship in which some agreement must be reached about the roles of each participant
Interaction Styles:
Salespeople can adapt their approach according to customers traits and preferences
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Postpurchase Satisfaction
Consumer satisfaction/dissatisfaction (CS/D):
Determined by the overall feelings, or attitude, a person has about a product after it has been purchased.
Perceptions of Product Quality:

Consumers use a number of cues to infer quality
Quality Is What We Expect It To Be:

Expectancy Disconfirmation Model: Consumers form beliefs about product performance based on prior experience with the product and/or communications about the product that imply a certain level of quality. Managing Expectations: Customer dissatisfaction is usually due to expectations exceeding the companys ability to deliver.
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Quality Perceptions
This ad for Ford relies on a common claim about quality.
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Customer Expectation Zones
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Acting on Dissatisfaction
Three Possible Courses of Action
Voice Response: The consumer can appeal directly to the retailer for redress. Private Response: Express dissatisfaction about the store or product to friends and/or boycott the store. Third-Party Response: The consumer can take legal action against the merchant, register a complaint with the Better Business Bureau, or write a letter to the newspaper.
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Going to the Gemba
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Planet Feedback
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Product Disposal
Disposal Options:
(1) Keep the item (2) Temporarily Dispose it off (3) Permanently dispose it off
Lateral Cycling: Junk Versus Junque

Lateral Cycling: When already purchased objects are sold to others or exchanged for other things. Underground Economy: Secondary markets (e.g. eBay)
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Consumers Disposal Options
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Volkswagen
This Dutch ad says, And when youve had enough of it, well clear it away nicely.
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Discussion Question
How do secondary markets created by such sites as eBay affect the sales of new goods from traditional retailers? What can they do to compete with these products?
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Used CDs
The used recording market is alive and well.
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ReDo
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Buying and Disposing: Consumer Behavior

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Buying and Disposing

Situational Effects on Consumer Behavior

Factors Influencing Behaviour

Reference Groups Family Roles & Status

Age/lifecycle stage Occupation Education Lifestyle Personality/ self-concept Economic circumstances

Motivation Perception Learning Beliefs and attitudes

Purchase and Postpurchase Issues

Situation Influences Choice

Social and Physical Surroundings

Circular or Cyclic Time

Dimensions of Emotional States

Shopping: A Job or An Adventure?

FedEx Brand Position

In-Store Decision Making

One Consumers Image of an Impulse Buyer

Categorizing Shoppers by Advance Planning

Perceptions of Product Quality:

Quality Is What We Expect It To Be:

Customer Expectation Zones

Going to the Gemba

Lateral Cycling: Junk Versus Junque

Consumers Disposal Options

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