Consumer Behavior Test #3 - Chapter 17: Outlet Selection & Purchase

Shopping Orientation: Basic Shoppers

(22%) Are motivated primarily by getting exactly what they want in the least amount of time. Shopping is necessary but not recreational or social.

Shopping Orientation: Enthusiast Shoppers

(22%) Enjoy shopping and are motivated by many aspects of shopping including recreational and social aspects, and "obtain entertainment value" from shopping.

Perceived Risk: Negative Outcomes

a. Social Cost (hairstyle not being appreciated) b. Financial Cost (expensive shoes that turn out to be too uncomfy) c. Time Cost (tv repair that requires the whole thing to be taken there, left, and then picked up later) d. Effort Cost (a flashdrive loaded with hours of work before it fails) e. Physical Cost (new medicine that produces a harmful side effect)

Shopping Orientation: Apathetic Shopper

(16%) Have no particular shopping motive and are "indifferent toward shopping".

Shopping Orientation: Bargain Seekers

(20%) Are motivated by their perceived role as a shopper who gets good deals and lower prices. Recreational and social aspects of shopping are not of interest.

Shopping Orientation: Destination Shoppers

(21%) Are motivated primarily by the anticipated utility of obtaining brand name and image-enhancing products and not by other factors such as socializing.

Reasons for abandoning an online sale

1. Lack of touch 2. Don't want to give personal financial information 3. Delivery costs too high 4. Returns will be a hassle 5. Prefer to research online, buy offline 6. Feel no need to buy online 7. Can't speak to sales assistant online

Consumer characteristics that are particularly relevant to store choice:

1. Perceived Risk 2. Shopping Orientation

Factors affecting consumers' brand choice

1. PoP Materials (coupon dispenser, retail price promo sign, shelf talker/dangler, inflatable/mobile) 2. Price reductions and promotional deals (coupons, multi-item discounts, free samples) 3. Outlet Atmosphere (ambient, physical, and social conditions, symbols) 4. Stockouts (substitution, transaction and opportunity costs) 5. Website functioning & expectations 6. Mobile Apps 7. Sales Personnel (knowledge, skill, authority, consumer's buying task, CRM)

Factors affecting consumers' retail outlet selection

1. Salespeople are poorly informed 2. Waiting in long lines 3. Hard time finding things 4. Parking and traffic 5. Dealing with crowds 6. Hard to get someone to wait on you 7. The time it takes to shop 8. Don't like shopping

Retailer/Store Brands

Are closely related to store image, and at the extreme, the store or outlet is the brand. The key to their success = high quality at a reasonable price (Example: Target & Walgreens brands)

Multi-Channel Shoppers

Consumers who browse and/or purchase in more than one channel

Avatars

In the online context, marketers are testing these online sales clerks that interact with the consumers as they shop on their website.

Shopping Orientation

Individuals go shopping for more complex reasons than simply acquiring a product or set of products. Diversion from routine activities, exercise, sensory stimulation, social interactions, learning about new trends, and even acquiring interpersonal power ("bossing" clerks) are nonpurchase reasons for shopping.

Perceived Risk

The purchase of products involves the anxiety that they may not perform as expected.

Multi-Channel Strategy

This approach can take many forms (physical stores, Internet, catalogs, etc) and can be successful for a number of reasons, such as a regional in-store retail utilizing the internet to become national/international in scope.

Omni-channel Shoppers

consumers who browse and/or purchase in more than one channel simultaneously They are: Digital savvy with heavy reliance on mobile shopping apps; younger Gen Yers, upscale tech savvy Gen X and older Gen Y; Spend 15-30% more in retailing than multi-channel shoppers