BUYING AND DISPOSING

Lecture 8MBA 2K13

Consumer Behavior

Lecture Objectives Factors at the time of purchase dramatically influence the

consumer decision-making process.

In addition to what a shopper already knows or believes about a product, information, a store, or Web site provides can strongly influence a purchase decision.

A salesperson can be the crucial link between interest in a product and its actual purchase.

Marketers need to be concerned about a consumer’s evaluations of a product after he buys it as well as before.

Getting rid of products when consumers no longer need or want them is a major concern both to marketers and to public policy makers.

Issues Related to Purchase and Post purchase Activities

A consumer’s choices are affected by many personal factors…and the sale doesn’t end at the time of purchase

The Shopping Experience:Dimensions of Emotional States

Thrill of the Hunt

SocialExperiences

Share Common InterestsInstant

Status

Interpersonal Attraction

Why do people shop so much?

e-Commerce

The experience of acquiring goods online may be different than offline.

BenefitsGood customer service, more options, more

convenient

LimitationsLack of security,

fraud, actual shopping

experience, shipping charges

Store Image

• Just like products, stores have “personalities”• Factors that shape the personality or store image?Location, merchandise suitability, and knowledge of the sales staff • Interior design

• Types of patrons• Return policies• Credit availability

FedEx Makeover

BEFORE AFTER

FedEx retail outlets underwent a makeover in order to improve its store image. Store designers study atmospherics, the conscious designing of space and its various dimensions to evoke certain effects in buyers. The store designers for FedEx used colors and shapes associated with the attributes of innovative, leading-edge, and outgoing in creating the design.

In-Store Decision Making Spontaneous

shoppingUnplanned buyingImpulse buying

Point-of-purchase (POP) stimuli

Salesperson influence

Unplanned buying means that the consumer buys something that was not on planned purchase list. The reason may be due to a lack of familiarity with the store, time pressure, or just seeing something she actually needed but had forgotten.

Impulse buying occurs when the shopper experiences a sudden urge she can’t resist. A well-designed store display can boost impulse buys as much as 10%.

Postpurchase Satisfaction Postpurchase satisfaction or

dissatisfaction is determined by attitude about a product after purchase

Marketers constantly on lookout for sources of consumer dissatisfaction

Quality Is What We Expect It to Be Expectancy Disconfirmation Model Marketers must manage expectations

Don’t overpromiseWhen product fails,

reassure customers

with honesty

Customer Expectation Zones

Acting on Dissatisfaction Voice response: appeal to retailer directly

Private response: express dissatisfaction to friends or boycott store

Third-party response: take legal action

Product Disposal

Strong product attachment = painful disposal process

Ease of product disposal is now a key product attribute to consumers

Disposal options

Divesting of Unwanted Items

Iconic Transfer Ritual

Transition Place Ritual

Ritual Cleansing

The iconic transfer ritual involves taking pictures and videos of objects before the items are discarded

The transition-place ritual means putting the items in an out-of-the-way location for a while first. This follows the out-of-sight, out-of-mind approach

Ritual cleansing refers to preparing the item to be given away. People may wash, iron, and/or specially wrap the item before giving it away