Outlet Selection and Purchase CHAPTER SEVENTEEN Outlet Selection and Purchase Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Dimensions and Components of Store Image 17-1 Dimension Components(s) Merchandise Quality, selection, style, and price Service Layaway plan, sales personnel, easy return, credit, and delivery Clientele Customers Physical facilities Cleanliness, store layout, shopping ease, and attractiveness Convenience Location and parking Promotion Advertising Store atmosphere Congeniality, fun, excitement, comfort Institutional Store reputation Post-transaction Satisfaction Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Expenditures of Individuals Drawn to a Store by an Advertised Item 17-2 Purchased the advertised item and one or more additional items Purchased only the advertised item Did not purchase the advertised item but purchased one or more other items Did not purchase anything Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

The Economic and Social Risk of Various Types of Products 17-3 Economic Risk Social Risk Low High Low Wine (home use) Personal computer Socks Auto repair Kitchen supplies Clothes washer Pens/pencils Insurance Gasoline Doctor/lawyer High Fashion accessories Business suits Hairstyles Living room furniture Gifts (inexpensive) Automobile Wine (entertaining) Snow board Deodorant Ski suit Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

In-Store Influences that Impact Alternative Evaluation and Purchase 17-4 Alternative evaluation Price reductions Sales personnel Stockouts Displays Store layout Modify intended purchase behavior Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Supermarket Decisions: Two-thirds Are Made In-Store 17-5 Specifically planned Generally planned Substitute Unplanned Type of store decision (percent) Source: The 1995 POPAI Consumer Buying Habits Study, (Englewood, N.J.: Point-of-Purchase Advertising Institute, 1995), p.18.

In-Store Shopper Purchase Behavior 17-6 Specifically Generally In-store Product Planned Planned + Substituted + Unplanned = Decisions Total study average* 30 % 6 % 4 % 60 % 70 % Hair care* 23 4 5 68 77 Magazines/newspapers* 11 3 1 84 89 Oral hygiene products* 30 5 5 61 71 Automobile oil* 21 — — 79 79 Tobacco products* 32 6 — 61 68 Coffee 42 5 6 47 58 First aid products 7 10 — 83 93 Cereal* 33 9 6 52 67 Soft drinks* 40 3 5 51 60 Alcoholic beverage mixers* 23 6 4 68 77 Fresh fruits, vegetables* 67 7 1 25 33 Cold remedies** 28 35 19 18 72 Toothpaste/toothbrushes** 38 31 16 15 62 Antacids/laxatives** 39 37 12 12 61 Facial cosmetics** 40 34 11 15 60 Sources: *1995 POPAI Consumer Buying Habits Study (Englewood, N.J.: Point-of-Purchase Advertising Institute, 1995); **1992 POPAI/Horner Canadian Drug Store Study (Englewood, N.J.: Point-of-Purchase Advertising Institute, 1992)

The Sales Impact of Point-of-Purchase Displays 17-7 Percent Increase 700% Source: POPAI/KMart/Procter & Gamble Study of P-O-P Effectiveness in Mass Merchandising Stores, (Englewood, N.J.: Point-of-Purchase Advertising Institute, 1993).

The Effect of P-O-P Display Location on Sales of Listerine Mouthwash 17-8 +162% Percent 120 100 80 60 40 20 +141% Average unit sales per store +11% Regular price on shelf Feature price/display Shelf Rear Front Endcap Endcap Source: POPAI/Warner-Lambert Canada P-O-P Effectiveness Study (Englewood Cliffs ,N.J.: Point-of-Purchase Advertising Institute, 1992).

Impact of Display and Advertising on Peanut Butter Sales (percent sales gain) 17-9 734 Percent Source: “Display Effectiveness: An Evaluation, Part II,” The Nielsen Researcher, 1983, p. 7.

Impact of Advertising and Point-of-Purchase Displays on Sales of Juice and Cereal (percent sales gain) 17-10 Purchases per 100 shoppers Source: 1987 POPAI Consumer Buying Habits Study (Englewood, N.J.: Point-of-Purchase advertising Institute, 1987).

Store Atmosphere and Shopper Behavior 17-11 Store Atmosphere Individual Characteristics Response 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 Enjoyment • Time in store • Items examined • Information acquired • Purchases • Satisfaction Mood • Effort • Commitment • Attitude • Knowledge • Skill Source: Adapted from M. J. Bitner, “Servicescapes,” Journal of Marketing, April 1, 1992, pp. 57-71.

Impact of a Stockout Situation 17-12 I. Purchase behavior A. Purchase a substitute brand or product at the original store. The substitute brand/product may or may not replace the regular brand in future purchases. B. Delay the purchase until the brand is available at the original store. C. Forego the purchase entirely. D. Purchase the desired brand at a second store. All of the items initially desired may be purchased at the second store or only the stockout items. The second store may or may not replace the original store on future shopping trips. II. Verbal behavior A. The consumer may make negative comments to peers about the original store. B. The consumer may make positive comments to peers about the substitute store. C. The consumer may make positive comments to peers about the substitute brand/product. III. Attitude shifts A. The consumer may develop a less favorable attitude toward the original store. B. The consumer may develop a more favorable attitude toward the substitute store. C. The consumer may develop a more favorable attitude toward the substitute brand/product. Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.