Impact of Environment on Consumer Behaviour

Impact of Impact of Environment on Environment on

Consumer Behaviour.Consumer Behaviour.

Situational influences Situational influences

CONSUMER ENVIRONMENTCONSUMER ENVIRONMENT

Those factors Those factors Existing independently of individual Existing independently of individual

consumers and firms consumers and firms That influence the exchange process That influence the exchange process

The nature of situational The nature of situational influences influences

Temporary conditions or settings Temporary conditions or settings That occur in the environment That occur in the environment At a specific time and place. At a specific time and place.

Definition Definition

All those factors particular to a time All those factors particular to a time and place that do not follow from a and place that do not follow from a knowledge of personal and stimulus knowledge of personal and stimulus attributes and that have a attributes and that have a demonstrable and systematic effect demonstrable and systematic effect on current behavior.on current behavior.

Russell W Belk Russell W Belk

Situations Situations

1.1. Communication situationCommunication situation

2.2. Purchase situationPurchase situation

3.3. Usage or consumption situationUsage or consumption situation

Communication situationCommunication situation

Setting in which consumers are Setting in which consumers are exposed to communication exposed to communication

Will influence ?Will influence ? How much we noticeHow much we notice How much we understandHow much we understand How much we valueHow much we value How much we retainHow much we retain

Three types of communication Three types of communication situationsituation

1.The exposure situation 1.The exposure situation

2.The context of communication2.The context of communication

3.The consumer’s mood while 3.The consumer’s mood while exposure to communication occurs exposure to communication occurs

1.The exposure situation 1.The exposure situation

1.1. Reads a magazine advertisement Reads a magazine advertisement ------------------

2.2. Views a TV commercial ALONE ? ---------Views a TV commercial ALONE ? ---------

3.3. Sees the salesman while getting out to Sees the salesman while getting out to work---work---

4.4. Hears a radio commercial while eager Hears a radio commercial while eager to listen to election results-------------to listen to election results-------------

5.5. In between a serial-----In between a serial-----

6.6. Watching stock market movesWatching stock market moves

2.The context 2.The context

In between a sad programmeIn between a sad programme

In between a Happy programmeIn between a Happy programme

Car race Car race

Cricket Cricket

Comedy cinemaComedy cinema

3.Mood of consumers3.Mood of consumers

Pleasant mood –willing to listen to ---Pleasant mood –willing to listen to --- In a hurry -----In a hurry ----- Waiting for viva voce -------Waiting for viva voce ------- Why music and dance for Why music and dance for

communication-- communication--

II Purchase Situation II Purchase Situation

1.Instore environment 1.Instore environment Décor Décor SoundsSounds Aroma Aroma LightingLighting Dress and looks of sales peopleDress and looks of sales people Behaviour of sales peopleBehaviour of sales people

II Purchase SituationII Purchase Situation

Type of people who visit the storeType of people who visit the store Product availabilityProduct availability Shelf positionShelf position Price deals Price deals Displays Displays Physical space to move aroundPhysical space to move around Rush (crowding) or otherwise Rush (crowding) or otherwise


MusicMusic Child care Child care Play spacePlay space Availability of Food and beverages Availability of Food and beverages EscalatorsEscalators Good countersGood counters NoiseNoise Beggars around you –how do you Beggars around you –how do you

feel??feel??


Refrigeration Refrigeration Air-conditionedAir-conditioned Price tags/displaysPrice tags/displays Queues Queues Many intangibles ----------Many intangibles ----------

A lot moreA lot more

Atmosphere Atmosphere LayoutLayout SoundsSounds SmellsSmells Texture... Texture... Pleasure/displeasurePleasure/displeasure Arousal/Boredom Arousal/Boredom Time in StoreTime in Store AffiliationAffiliation

III Usage or consumption III Usage or consumption situationsituation

LunchLunch A guest comes homeA guest comes home Weekend tripWeekend trip In the college In the college Treat for friendsTreat for friends Wedding Wedding OnamOnam X’mas X’mas Before exams Before exams After a funeral After a funeral

Unanticipated purchase Unanticipated purchase situations situations

Emergencies Emergencies Breakdowns Breakdowns

Gift Giving situationsGift Giving situations

Range of products for giftsRange of products for gifts Involvement Involvement Communicate to the receiver - what ?Communicate to the receiver - what ? Symbolic meaningSymbolic meaning Money value Money value Esteem measureEsteem measure Status of giver Status of giver Giver’s impression of receiver’s Giver’s impression of receiver’s

personalitypersonality

Obligatory Obligatory Altruism Altruism ReciprocityReciprocity RitualRitual obligation obligation Love, friendship Love, friendship

Gift Giving situationsGift Giving situations

FunctionalityFunctionality Ritual-culture specificRitual-culture specific Packing Packing Quality ??Quality ?? Risky???Risky??? You as marketer of specific gift items You as marketer of specific gift items

----------

TIME AND TEMPORAL TIME AND TEMPORAL PERSPECTIVEPERSPECTIVE

Deal with the effect of time on Deal with the effect of time on consumer behaviorconsumer behavior

Less time –shorter ,lesser information Less time –shorter ,lesser information search search

Buys with available informationBuys with available information Less than optimal purchase Less than optimal purchase Depend on othersDepend on others Brand loyalty to avoid riskBrand loyalty to avoid risk

Temporal effects Temporal effects

Internet shoppingInternet shopping More time ---More time ---

Social surroundingsSocial surroundings

Presence of other individuals during Presence of other individuals during the purchase the purchase

Shopping with fiancé Shopping with fiancé Shopping with friends Shopping with friends Shopping when an enemy is Shopping when an enemy is

present ?? present ??

ANTECEDENT STATESANTECEDENT STATES

Antecedent States . . . Antecedent States . . . are the temporary physiological and are the temporary physiological and

mood states that a mood states that a consumerconsumer brings brings to a consumption situation. to a consumption situation.

Physiological State: Hunger.Physiological State: Hunger. Mood State: Happy feelings.Mood State: Happy feelings.

Momentary moodsMomentary moods

Momentary moods are Momentary moods are such as temporary states of such as temporary states of

depression or high excitement. depression or high excitement. (Moods are transient feeling states (Moods are transient feeling states

that are not tied to a specific event that are not tied to a specific event or object.)or object.)

Momentary conditionsMomentary conditions

Momentary conditions are such Momentary conditions are such things as things as

being tired, being tired, feeling ill, etc.feeling ill, etc. Feeling excited Feeling excited

Antecedent States . . . Antecedent States . . . Can lead to problem recognition.Can lead to problem recognition. Can change the “feeling” Can change the “feeling”

component of hierarchy of effects component of hierarchy of effects Mood states influence Mood states influence behaviorbehavior, e.g. , e.g.

shopping to alleviate loneliness. shopping to alleviate loneliness.

Olfactory Cues Olfactory Cues

Shoppers perceive higher quality Shoppers perceive higher quality goods in scented stores. goods in scented stores.

Odors should be consistent with store Odors should be consistent with store offerings. offerings.

Note- Note- These cues are expensive to These cues are expensive to

maintain. maintain.

Effects of Spatial Effects of Spatial ArrangementsArrangements

Space modifies/shapes Space modifies/shapes behaviorbehavior Retail store spaceRetail store space affects affects

consumers’ behaviour consumers’ behaviour Retail stores affect attitudes, images Retail stores affect attitudes, images Stores can create desired Stores can create desired consumerconsumer

reactions reactions

The Effects of Crowding The Effects of Crowding on Consumers on Consumers

DensityDensity – – how closely packed people arehow closely packed people are (i.e., the physical arrangements of (i.e., the physical arrangements of

people in a space). people in a space). High density in railway station –High density in railway station – Bank ?? Bank ?? In “fun” situations –better pleasure In “fun” situations –better pleasure

CrowdingCrowding

The unpleasant feelings that people The unpleasant feelings that people experienceexperience

When they perceive that densities When they perceive that densities are too high are too high

Feel that their control of the situation Feel that their control of the situation has been reduced to unacceptable has been reduced to unacceptable levels. levels.

Store Location Store Location

influencesinfluences consumers consumers Store LayoutStore Layout I.e. the physical organization of a I.e. the physical organization of a

store store

Atmospherics Atmospherics

Design of the buildingDesign of the building Interior spaceInterior space Layout of aislesLayout of aisles Texture of carpets and wallsTexture of carpets and walls ScentsScents ColoursColours Shapes and sounds Shapes and sounds Experienced by customersExperienced by customers

Marketing Implications Marketing Implications

Positioning. Positioning. SituationalSituational variables offer multiple variables offer multiple opportunities for positioning. opportunities for positioning.

Research may indicate which Research may indicate which situations present situations present opportunities for new products. opportunities for new products.

Many Purchases Are Made to Many Purchases Are Made to Buy TimeBuy Time

The “time-buying The “time-buying consumerconsumer” is a ” is a

consumerconsumer who engages in buying time who engages in buying time through products through products

Time-saving qualities are a key Time-saving qualities are a key promotional idea promotional idea

Time can act as a product attribute Time can act as a product attribute

Marketing Mix. Firms may be able to Marketing Mix. Firms may be able to present time-saving attributes as a present time-saving attributes as a trade-off for a higher price. trade-off for a higher price.

Segmentation. An increase in the Segmentation. An increase in the female work force presents female work force presents opportunities to market to the opportunities to market to the segment of males doing more of their segment of males doing more of their own shopping. own shopping.

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Impact of Environment on Consumer Behaviour