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Lecture Retailing management (6/e) - Chapter 4: Customer buying behavior. This chapter discusses factors consumers consider when choosing stores and buying merchandise and explores trends in consumer demographic segments.
Chapter Customer Buying Behavior McGrawHill/Irwin Retailing Management, 6/e Copyright © 2007 by The McGrawHill Companies, Inc. All rights reserved Illustration of Buying Process Jennifer Sanchez, at San Francisco State University, is beginning to interview for jobs For the first interviews on campus, Jennifer had planned to wear the blue suit her parents bought her three years ago But looking at her suit, she realizes that it’s not very stylish and that the jacket is beginning to show signs of wear Wanting to make a good first impression during her interview, she decides to buy a new suit 4-2 Andrew Ward/Life File/Getty Images 4-3 Illustration (Continued) Jennifer surfs the Internet for tips on dressing for interviews (www.collegegrad.com and www.jobsearch.about.com) and looks through some catalogs to see the styles being offered But she decides to go to retail store so she can try it on and have it for her first interview next week She likes to shop at Abercrombie and Fitch and American Eagle Outfitter, but neither sells business suits She remembers an ad in the San Francisco Chronicle for women’s suits at Macy’s She decides to go to Macy’s in the mall close to her apartment and asks her friend Brenda to come along Jennifer values Brenda’s opinion, because Brenda is interested in fashion 4-4 Illustration (Continued) Walking through the store, they see some DKNY suits Jennifer looks at them briefly and decides they’re too expensive for her budget and too stylish She wants to interview with banks and thinks she needs a more conservative suit John A Rizzo/Getty Images Illustration (Continued) Jennifer and Brenda are approached by a salesperson in the career women’s department After asking Jennifer what type of suit she wants and her size, the salesperson shows her three suits Jennifer asks Brenda what she thinks about the suits and then selects one to try on When Jennifer comes out of the dressing room, she feels that the shoulder pads in the suit make her look too heavy, but Brenda and the salesperson think the suit is attractive Jennifer decides to buy the suit after another customer in the store tells her she looks very professional in the suit 4-5 Illustration (Continued) Jennifer doesn’t have a Macy’s charge card, so she asks if she can pay with a personal check The salesperson says yes, but the store also takes VISA and MasterCard Jennifer decides to pay with her VISA card As the salesperson walks with Jennifer and Brenda to the cash register, they pass a display of scarves The salesperson stops, picks up a scarf, and shows Jennifer how well the scarf complements the suit Jennifer decides to buy the scarf also 4-6 Stages in the Buying Process 4-7 4-8 Types of Needs • Utilitarian Needs –satisfied when purchases accomplish a specific task Shopping needs to be easy and effortless like Sam’s or a grocery store • Hedonic needs – satisfied when purchases accomplish a need for entertainment, emotional and recreational experience as in department stores or specialty stores 4-9 Satisfied Hedonic Needs Stimulation Social experience Learn new trends and fashions Satisfy need for power and status Self-rewards Adventure Stimulating Need Recognition 410 Suggestions by Sales Associates Advertising and Direct Mail Visual Merchandise in store Special Events in the Store Signage Displays Stockbyte/Punchstock Images What Retailers Need to for Customers to Engage in Habitual Decision Making • If the customer habitually comes to you, reinforce behavior – Make sure merchandise in stock – Provide good service – Offer rewards to loyal customer • If the customer goes to your competitor’s store, break the habit – Offer special promotions 430 431 Factors Influencing the Buying Decision Process 432 Family Influences Buying Decisions Purchases are for entire family to use Whole family participates in decision making process Retailers work to satisfy needs of all family members © Digital Vision Culture Culture is the meaning, beliefs, morals and values shared by most members of a society Western culture: individualism Eastern culture: collectivism Subcultures are distinctive groups of people within a culture Mark Andersen/Getty Images 433 Reference Groups 434 A reference group is one or more people whom a person uses as a basis of comparison for beliefs, feelings and behaviors (c) image100/PunchStock Reference groups affect buying decisions by: • Offering information • Providing rewards for specific purchasing behaviors • Enhancing a consumer’s self-image Criteria for Evaluating Segmentation Schemes 435 Actionability Identifiability Accessibility Stability Size 436 Methods for Segmenting Retail Markets 437 VALS2 American Lifestyle Segments What is Fashion? 438 Digital Vision / Getty Images The McGraw-Hill Companies, Inc./Lars A Niki, photographer A type of product or way of behaving that is temporarily adopted by a large number of consumers because it is viewed as socially acceptable (c) Digital Vision/PunchStock Why Consumers Buy Fashions 439 Communicate with Others Manage Appearance Express Self-Image Enhance Ego Impress Others McGraw-Hill Companies, Inc./Gary He, photographer Stages in the Fashion Life Cycle 440 Theories of Fashion Diffusion 441 Trickle Down Theory: Fashion leaders are consumers with the highest social status – wealthy, well-educated consumers After they adopt a fashion, the fashion trickles down to consumers of lower classes Theories of Fashion Diffusion © Digital Vision Mass Market Theory: This theory suggests that fashions spread across social classes and that each social class has its own fashion leaders who play a key role in their own social networks 442 Theories of Fashion Diffusion © Digital Vision Subculture Theory: This theory is based on the development of recent fashions These fashions start with people from lower-income groups and “trickled up” to mainstream consumer classes 443 444 Saturation to Decline When fashion reaches saturation, it becomes less appealing to consumers It no longer provides an opportunity for people to express their individuality Royalty-Free/CORBIS ... how well the scarf complements the suit Jennifer decides to buy the scarf also 4- 6 Stages in the Buying Process 4- 7 4- 8 Types of Needs • Utilitarian Needs –satisfied when purchases accomplish a... pricing Credit Royalty-Free/CORBIS Providing Information on Internet Buying a Car On-line (c) image100/PunchStock 41 4 Characteristics About Food Retailers 41 5 Evaluation of Retailers 41 6 Info Sanchez... classes 44 3 44 4 Saturation to Decline When fashion reaches saturation, it becomes less appealing to consumers It no longer provides an opportunity for people to express their individuality Royalty-Free/CORBIS