Chapter 10 Buying and Disposing CONSUMER BEHAVIOR, 8e Michael Solomon

Issues Related to Purchase and Postpurchase Activities A consumer’s choices are affected by many personal factors…and the sale doesn’t end at the time of purchase

Situational Effects on Consumer Behavior (cont.) Mood Effects: The way we feel at a particular time affects what we buy or do Day Reconstruction Method How do morning vs. afternoon vs. evening vs. late-night purchases differ? Weekend vs. weekday purchases Situational self-image (“Who am I right now?”)

Social and Physical Surroundings Affect a consumer’s motives for product usage and product evaluation Décor, odors, temperature Co-consumers as product attribute Large numbers of people = arousal Examples: Jam-packed bars and stadiums Interpretation of arousal: density versus crowding Type of consumer patrons social class similarity to me

Temporal Factors (Time) What exactly is TIME? Time styles: consumers try to maximize satisfaction by dividing time among tasks Time poverty One-third of Americans feel rushed Marketing innovations allow us to save time Polychronic activity – “multitasking”

Temporal Factors (cont.) Psychological time: consumers’ perception of time Often much different than reality Time categories relevant to marketers Good times for ads / sales messages: occasion/leisure times, time to kill, distraction needs Bad times for ads / sales messages : flow, engrossment and deadline times Time perspective metaphors Time is a pressure cooker Time is a map Time is a mirror Time is a river Time is a feast

Temporal Factors (cont.) Time styles / attitudes come from culture Linear separable time – “there’s a time and place for everything”, follow the clock (Americans) Procedural time – “when the time is right”, ignore the clock (French) Circular/cyclic time – present-oriented, actions governed by the seasons (Hispanics), little sense of future Queuing theory: mathematical study of waiting lines Waiting for product = perception of good quality Too much waiting = negative feelings Marketers use “tricks” / distractions to minimize psychological waiting time

The Shopping Environment Antecedent states: mood/physiological condition influences what we buy, how much we spend and how we evaluate products and services Mood = combination of “affective valence” and arousal The difference between “mood” and “emotion” Happiness = high in pleasantness and moderate in arousal Elation = high pleasantness, high arousal Mood biases judgments of products/services Moods are affected by store design, music, interaction with staff, TV programs, ad humor, etc.

Reasons for Shopping Reasons for shopping: Utilitarian vs. Experiential Experiential / Hedonic reasons include: Social experiences Sharing of common interests Interpersonal attraction Instant status The thrill of the hunt

Retailing as Theater Competition for customers is becoming intense as nonstore alternatives multiply Malls gain loyalty by appealing to social motives (much less about ‘buying product’) Retail techniques: Landscape themes Marketscape themes Cyberspace themes “Home away from home”

FedEx Makeover BEFORE AFTER

Is store image easy to copy? Store image: personality of the store Atmosphere Location Merchandise mix and layout Congeniality / politeness / helpfulness of sales staff Is store image easy to copy?

E-Commerce: Clicks versus Bricks E-commerce reaches customers around the world, but competition increases exponentially Benefits: good customer service, technology value Limitations: security/identity theft, actual shopping experience, large delivery/return shipping charges Can marketers instill “good mood online?” Is “store image” still relevant online?

Atmospherics & Consumer Involvement Atmospherics: conscious designing of space and dimensions to evoke certain effects Colors/lighting, scents, and sounds/music affect time spent in store and spending Getting Consumers Involved in a Product Creation Experience Build-A-Bear Workshop Club Libby Lu Viking Home Chef and Viking Culinary Academy Universal Studios

In-Store Decision Making Spontaneous shopping consists of: Unplanned buying: reminded to buy something Impulse buying: sudden, irresistible urge to buy Point-of-purchase (POP) stimuli: product display or demonstration that draws attention Music store CD sampler, “endcap” displays Salespeople Effects Commercial friendships Are “commercial friendships” a good idea? Good salespeople vs. bad salespeople

Quality Is What We Expect It to Be Expectancy disconfirmation consumers form expectations of product quality based on prior performance and experience Disconfirmation is when expectations aren’t met Marketers must “manage expectations” Don’t promise what you can’t deliver Consider under-promising a little When product fails, marketers must reassure customers with honesty

Customer Expectation Zones

Acting on Dissatisfaction Three ways consumers can act on dissatisfaction: Voice response: appeal to retailer directly (encourage this!) Private response: express dissatisfaction to friends or boycott store Third-party response: take legal action Or… Do nothing.

TQM: Going to the Gemba Observe first-hand how people actually interact with their environment in order to identify potential problems Gemba: the one true source of information Need to send marketers/designers to the precise place of product consumption Host Foods study in airport cafeterias

Going to the Gemba

Product Disposal Strong product attachment = painful disposal process Ease of product disposal is now a key product attribute to consumers Disposal fees for tvs, computers, etc. Some consumers buy new products before disposing of old products The “move-then-throw-away” phenomenon Disposal options (see next slide)

Consumers’ Disposal Options

Lateral Cycling: Junk versus “Junque” Lateral cycling: already purchased products are sold to others or exchanged for still other things EBay, Flea markets, garage sales, classified ads, bartering for services, hand-me-downs, etc. Divestment rituals: Iconic transfer: taking photos of objects before selling them Transition-place: putting items in an out-of-the-way location before disposing of them Ritual cleansing: washing, ironing, and/or meticulously wrapping the item