Chapter 17:Outlet Seldection and Purchase Perceived risk associated with purchases Social cost Financial cost Time cost Effort cost Physical cost.

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Presentation transcript:

Chapter 17:Outlet Seldection and Purchase Perceived risk associated with purchases Social cost Financial cost Time cost Effort cost Physical cost

Outlet Choice vs. Product Choice Outlet first, brand second Brand first, outlet second Simultaneous decisions

Impulse Purchase -“buying action undertaken without a problem having been previously recognized or a buying intention formed prior to entering the store.” -It may be described as a choice made on the spur of the moment because of a strong positive feeling regarding the object. -How frequent are impulse purchases?

Supermarket Decisions: Two-thirds Are Made In-Store Specifically planned Generally planned Substitute Unplanned

In-Store Influences that Impact Alternative Evaluation and Purchase Alternative evaluation Price reduction s Sales personnel Stockouts Displays Store layout/atm osphere Modify intended purchase behavior

Store Atmosphere and Shopper Behavior Ambient Conditions Temperature Air quality Noise Music Odor Physical Conditions Layout Equipment Colors Furnishings Space Social Conditions Customer characteristics Number of customers Sales force characteristics Symbols Signs P-O-P displays Decor style Sales Personnel Career objectives Training Personal situation Social class Stage in HLC Consumers Lifestyle Shopping orientation Stage in HLC Situation Consumers Enjoyment Time in store Items examined Information acquired Purchases Satisfaction Sales Personnel Mood Effort Commitment Attitude Knowledge Skill Store Atmosphere Individual Characteristics Response

Impact of a Stockout Situation Another brand/same store Delay purchase Forgo purchase Same brand/another store Negative original store WOM Positive new store WOM Positive new brand WOM Original store attitude reduction New store attitude increase New brand attitude increase Action Tooth-paste Computer