Lecture Consumer behaviour: Chapter 6 - Cathy Neal, Pascale Quester, Del Hawkins

In this topic we will cover the following aspects: Retail outlet selection, influence of consumer characteristics, in-store influences and brand choice, and how these influences relate to marketing strategy selection. The changes due to Internet retailing will also be discussed.

Chapter Outlet Selection and Purchase • Factors that affect retail outlet selection • Why consumer characteristics can also affect outlet selection • In-store influences that can affect brand choice • Why marketers need to consider these influences • How the retail environment is changing to respond to the online challenge Copyrightê2004McGrawưHillAustraliaPtyLtd 61 Consumer Outlet Selection and Purchase Where will consumers shop? • How they choose a retail outlet? – – consumer characteristics store characteristics • In-store decision alterations • The purchase process • Alternative to store selection • Implications for strategy  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–2 Outlet Choice vs Product Choice Brand (or item) first, outlet second Outlet first, brand second Brand and outlet simultaneously  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–3 Marketing Strategy Based on the Consumer Decision Sequence 6–4 Use of Advertising to Create Brand Demand and Direct Consumers to Outlets 6–5 The Retail Scene • In stores • Other outlets, non-store outlets – – markets, direct sales, etc Internet sales  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–6 Internet Retailing 6–7 Reasons for not Purchasing on the Internet 6–8 Characteristics of Online Consumers 6–9 Online Shopping • Increasing number of consumers preferring to shop online • Females now using the Internet • Image of the outlet: – – – – Web page design Convenience Security Pricing  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–10 Attributes Affecting Retail Outlet Selection Outlet image A consumer’s or a target market’s perception of all the attributes associated with a retail outlet  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–11 Dimensions and Components of Store Image Dimension Component(s)  Merchandise  Service  Quality, selection, price, style  Sales assist., return, credit  Clientele  Physical features  Customers  Clean, layout, etc  Location, parking  Convenience  Promotion  Store atmosphere  Institutional  Advertising  Fun, excitement, comfort  Store reputation  Post-transaction  Satisfaction  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–12 Attributes Affecting Retail Outlet Selection • Store image • Retail advertising Price advertising – – – Size of discount Reference/comparison may be used Words accompanying the price information • Outlet location and size  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–13 Expenditure of Individuals Drawn to a Store by an Advertised Item 6–14 Outlet Location and Size: Retail Attraction Model MSi = n i Si / Ti Si / Ti MSi = market share of store i Si = size of store i (or mall) Ti = travel time to i = attraction factor for a particular product category  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–15 Consumer Characteristics and Outlet Choice • Shopping orientation • Perceived risk – – Financial risk Social risk  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–16 Financial and Social Risks for Various Types of Products 6–17 In-Store Influences that Impact on Evaluation of Alternatives, and Purchase 6–18 In-store Influences that Alter Brand Choices • The nature of unplanned purchases – – Reminder purchases or Impulse purchases  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–19 In-Store Buying Habits 6–20 Shopper Purchase Behaviour Insert table 6.8 6–21 Shopper Behaviour in Response to Frequent Stockouts 6–22 Impact of Stockout Situation 6–23 Store Atmosphere and Shopper Behaviour 6–24 Next Lecture… Chapter 7: Postpurchase Processes, Customer Satisfaction and Consumer Loyalty  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6–25 ...  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6 6 Internet Retailing 6 7 Reasons for not Purchasing on the Internet 6 8 Characteristics of Online Consumers 6 9 Online Shopping • Increasing number of consumers preferring...  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  6 19 In-Store Buying Habits 6 20 Shopper Purchase Behaviour Insert table 6. 8 6 21 Shopper Behaviour in Response to Frequent Stockouts 6 22 Impact of Stockout Situation 6 23 Store Atmosphere... Strategy Based on the Consumer Decision Sequence 6 4 Use of Advertising to Create Brand Demand and Direct Consumers to Outlets 6 5 The Retail Scene • In stores • Other outlets, non-store outlets –