Consumer Behavior Test 4
internal reference price
price or price range that a consumer retrieves from memory to compare with a price in the market
Ritual Situations
1. Are of major importance to marketers because they often involve prescribes consumption behaviors 2. Every major American holiday (ritual situation) has consumption rituals associated with it. For example, more than 60 percent of the toy industry's sales occur at Christmas 3. Candy marketers produce and promote a wide array of candies for Valentine's Day and Halloween. 4. Mother's Day is a $10 billion occasion in which card giving is largely a ritual behavior created by marketers.
Four Broad Categories/Types of Situations
1. Communication Situation 2. Purchase Situation 3. Disposition Situation 4. Usage Situation
Product Involvement
Motivation or interest in a specific product category
Brand Loyal Purchase
Nominal decision made because of an emotional commitment to the brand
Repeat Purchase
Nominal decision made from habit, because no other options are available, or never thought about the other options
According to Forrester research, what is the most common reason consumers give for not making online purchases?
Lack of "touch"
Time Pressure usually results in...
Less available information being used
Convenience
Location and parking
Momentary Conditions
Temporary states of being, such a s being tired, being ill, having extra money, or being broke
Purchase Involvement
The level of concern for, or interest in, a particular purchase
Atmospherics
The process managers use to manipulate the physical retail environment to create specific mood responses in shoppers
Task Definition
The reason the consumption activity is occurring- self-use versus gift giving
Store Atmosphere
The sum of all the physical features of a retail environment
Moods
Transient feeling states that are generally not tied to a specific event or object
retail outlet
any source of products or services for consumers
servicescapes
atmosphere of a service business such as a bank
high purchase involvement
extended decision making
Represent habitual decision making
frequent, repetitive purchase
Gift Giving
1. Gift giving is culture specific 2. The nature of a gift can signify the type of relationship the giver has or desires with the receiver. 3. Give giving often produces anxieties on the part of both givers and receivers 4. Gifts communicate symbolic meaning on several levels
Moods: Truths
1. Moods influence decision processes, the purchase and consumption of various products, and perceptions of service.
Evaluative Criteria (attribute) affecting retail outlet selection
1. outlet image 2. retailer brands 3. retail advertising 4. location 5. size
Steps in the Consumer Decision Process
1. problem recognition 2. information search 3. purchase 4. evaluation
Examples of retail outlets
1.Cabela's in Buda 2.L.L. Bean catalog 3.Walmart.com 4.An interactive ad for clothing seen on a TV show 5. Target's mobile shopping app
What occurs as purchase involvement increases?
1.decision making becomes more complex 2.Consumer searches for more information 3. alternatives are evaluated on more criteria 4. consumer uses more complex decision rules 5. Consumer goes through a more thorough post purchase evaluation
Examples of the purchase stage of the decision making
1.ordering a watch from amazon 2.buying furniture from a craig's list post 3. getting a ride from an uber driver 4.buying groceries at HEB
Embarrassment
A negative emotion influenced by both the product and the situation
Ritual Situation
A socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning
Problem recognition is the result of a discrepancy between ___________ AND ___________ that is sufficient to arouse and activate the decision process
Actual state AND desired state
Promotion
Advertising
Situational Influence
All those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior
Components of Physical Surroundings
Colors, Aromas, Music, and Crowding
Crowding
As more people enter a store or as more of the space of the store is filled with merchandise, an increasing percentage of the shoppers will experience a feeling of being crowded, confined, or claustrophobic
Servicescape
Atmosphere of a service business such as a hospital, bank, or restaurant
Store atmosphere
Congeniality, fun, excitement, comfort
Physical facilities
Cleanliness, store layout, shopping ease, and attractiveness
Store Image
Consumer's or target Market's perception of all the attributes associated with a retail outlet
Clientele
Customers
Antecedent States
Features of the individual person that are not lasting characteristics, such as momentary moods or conditions
actual state
I'm hungry
Physical Surroundings
Include decor, sounds, aromas, lighting, weather, and configurations, of merchandise or other materials surrounding the stimulus object
Limited Decision Making
Involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post purchase evaluation
Problem Recognition
Occurs when the consumer perceives a discrepancy between a desired state and the actual state that is sufficient to arouse and activate the decision process
Socai Surroundings
Other individuals present in the particular situation
external reference price
Price presented by a marketer for the consumer to use to compare with the current price
reference price
Price with which other prices are compared
Active problem
Problem of which the consumer is aware or will become aware in the due course of time
Merchandise
Quality, selection, style, and price
Nominal Decision Making
Referred to as habitual decision making, in effect involves no decision per se
Shopping orientation
Shopping style that puts particular emphasis on certain activities or shopping motivations
Temporal Perspectives
Situational characteristics that deal with the effect of time on consumer behavior
Store brands
Store brands become an important attribute of the outlet, giving the consumer another reason to shop at the store
Retail Attraction (gravitation) Model
Used to calculate the level of store attraction based on store size and distance from the consumer
reminder Purchase
When a consumer notices a product in a store and remembers that she is almost out at home
Impulse Purchase
When a consumer sees a product in the store and purchases it with little or no deliberation as the result of a sudden, powerful urge to have it
Example of Active Problem
Your toothache is painful, your roommate drank the rest of the milk
effort cost
a flash drive that is loaded with several hours of work before it fails
social cost
a hairstyle that is not appreciated by one's peers
physical cost
a new medicine that produces a harmful side effect
time cost
a television repair that requires the set to be taken to the shop, left, and then picked up later
limited decision
alarm clock
Financial cost
an expensive pair of shoes that become too uncomfortable to wear
store atmosphere
attributes such as lighting, layout, presentation of merchandise, fixtures, floor coverings, colors, sounds, odors, and the dress and behavior of sales and service personnel
store brands
brands carried exclusively in a given store
omni-channel shoppers
consumers who browse and/or purchase in more than one channel simultaneously (due to mobile apps)
Low purchase involvement
habitual decision making
Extended Decision Making
involves extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant post purchase evaluation
Service
layaway plan, sales personnel, easy return, credit, and delivery
Moderate Purchase involvement
limited decision making
In-home Shopping
nonstop retailing such as catalogs and the internet
Inactive problem
problem the consumer is not aware of
atmospherics
process managers use to manipulate the physical environment to create specific mood responses in shoppers
unplanned purchases
purchase made in a retail store that are different from those the consumer planned to make prior to entering that outlet
Example of Information Search
reading product reviews
social risk
risk of embarrassment
economic risk
risk of financial loss
perceived risk
risk of product's failure to perform as expected
spillover sales
sales of additional items to customers who came to purchase an advertised item
What influences the consumer's motivation to resolve a recognized problem?
size of discrepancy between actual and desired states and relative importance of the problem
institutional
store reputation
outlet image
target market's perception of all the attributes associated with a retail outlet; analogous to brand image for a store
Purchase Involvement
the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase
habitual decision
toothpaste
multi-channel marketing
utilizing multiple retail channels to reach customers
Example of a brand loyal nominal purchase decision
watermelon flavored Extra gum
extended decision
wedding ring
Low on both sisal risk and economic risk
wine for personal use