Chapter 10 Buying and Disposing

Introduction Making a purchase is often not a simple, routine matter of going to the store and quickly picking out something. Situational Effects on Consumer Behavior Consumption Situation Situational Self Image

Issues Related to Purchase and Post Purchase Activities ANTECEDENT STATES PURCHASE ENVIRONMENT POSTPURCHASE PROCESSES Situational Factors Usage Context Time Pressure Mood Shopping Orientation Consumer Satisfaction Product Disposal Alternative Markets The Shopping Experience Point of Purchase Stimuli Sales Interactions

Social and Physical Surroundings Temporal Factors Economic Time Timestyle Time poverty Polychronic Activity or Multi-Tasking Psychological Time Queuing Theory Antecedent States: If It Feels Good, Buy It Pleasure and Arousal (see next slide)

Dimensions of Emotional States

Shopping Experience: A Job or An Adventure? Thrill of the Chase Social Experiences Understanding Shopping Motives Sharing Common Interests Instant Status Interpersonal Attraction

Shopping Experience: A Job or An Adventure? Shopping Orientation Economic Shopper Rational, Goal-Oriented, Maximize Value of Their Dollar Personalized Shopper Forms Strong Attachments to Store Personnel Ethical Shopper Supports Locally Owned Stores Rather Than Big Chains Apathetic Shopper Doesn’t Like to Shop, a Necessary But Unpleasant Chore Recreational Shopper Views Shopping as a Fun, Social Activity

Shopping Experience: A Job or An Adventure? E-Commerce: Clicks Versus Bricks Retailing as Theater Malls are becoming giant entertainment centers appealing to consumer’s social motives as well as providing access to desired goods. Themed environments for shopping and eating. Store Image Location. Merchandise suitability. Knowledge and congeniality of sales staff. Atmospherics The conscious designing of space and its various dimensions, such as colors, scents, and sounds, to evoke certain effects in buyers.

The Purchase Environment In-Store Decision Making Many purchases are influenced by the store environment and contribute to: Spontaneous/Unplanned Buying - result from time pressures or reminders. Impulse Buying - sudden urge to purchase. Point-of-Purchase stimuli (POP) is increasingly popular and sophisticated and includes: In-Store Displays that dispense products and/or coupons. Salesperson An important factor who attempts to influence the buying behavior of the customer through: Resource Exchange, “What do I get from the salesperson?” Sales Interaction through Identity Negotiation.

Perceptions of Product Quality Follow-up Letters & Calls Postpurchase Satisfaction Consumer Satisfaction/ Dissatisfaction (CS/D) is Determined by the Overall Feelings, or Attitude, a Person Has About a Product After It Has Been Purchased. It is Influenced By: Perceptions of Product Quality Price Follow-up Letters & Calls Brand Name Warranties Advertising

Quality is What We Expect It To Be Expectancy Disconfirmation Model Consumers form beliefs about product performance based on prior experience with the product and/or communications about the product that imply a certain level of quality. If performance exceeds expectations, consumers are satisfied and pleased. If performance falls below expectations, consumers are dissatisfied. This illustrates the importance of Managing Expectations - customer dissatisfaction is usually due to expectations exceeding the company’s ability to deliver.

Expectation Zones

Acting on Dissatisfaction Marketers Should Encourage Customers to Complain Since People Are Likely to Spread the Word About Unresolved Negative Experiences. If a Person is Not Happy With a Product or Service, What Can They Do? Voice Response Private Acting on Dissatisfaction Third-Party

Consumers’ Disposal Options PRODUCT Keep Item Get Rid of Item Permanently Get Rid of Item Temporally Use It to Serve Original Purpose Convert It to Serve a New Purpose Store It Rent It Loan It Throw It Away Give It Away Trade It Sell It To Be (Re)sold To Be Used Directly to Consumer Through Middleman To Middleman

Product Disposal Lateral Cycling: Junk or “Junque”