Class 17 Buying & Disposing CA 2018 Consumer Insight A.Kwanta Sirivajjanangkul A.Panitta Kanchanavasita Albert Laurence School of Communication Arts Department of Advertising 2013

Consumers as Decision Makers Basic sequence of steps we undergo when we make decisions Decision Making How the particular situation in which we find ourselves affects these decisions and how we go about evaluating the results of our choices Buying and Disposing An overview of group processes and discusses the reasons we are motivated to conform to the expectations of others when we choose and display our phurchases Group Influence and Opinion Leadership The purchase decisions in conjunction with others, especially coworkers or family members Organizational and Household Decision Making This section explores how we make consumption decisions and discusses the many influences others exert during this process

Chapter outline Situational Effects on Consumer Behavior The Shopping Experience Dimension of Emotional States Shopping Orientation Retailing as Theatre In-Store Decision Making Postpurchase Satisfaction Product Disposal

Situational Effects on Consumer Behavior 1 Situational Effects on Consumer Behavior

1 Why do many factors over the qualities of the product or service influence the outcome of a transaction? Why do factors at the time of purchase dramatically influence the consumer decision-making process?

Issues Related to Purchase and Postpurchase Activities Antecedent States Situational Factors Usage Contexts Time Pressure Mood Shopping Orientation Purchase Environment The Shopping Experience Point-of-purchase Stimuli Sales Interactions Postpurchase Processes Consumer Satisfaction Product Disposal Alternative Markets Antecedent – pre purchase – before you go to buy the product

The Shopping Experience 2 Why does the information a store provides influence a purchase decision??? Our mood at the time of purchase can really impact what we feel like buying -

Dimensions of Emotional States 2 Dimensions of Emotional States Arousing Distressing (Worrying) Exciting Unpleasant Sleepy Relaxing Gloomy (Depressed) Pleasant 2 basic dimensions  arousing and Pleasure – determine whether we will react positively or negati-vely pleasure VS arousal level

Shopping Orientation 2 General attitudes about shopping shopping is how we acquire needed for products and services but social motives for shopping are also important Shopping is as activity that we can perform for either utilitarian (functional or tangible) or hedonic (pleasurable or intangible) reasons High heel shoes VS running shoes quick lunch at work VS dinner with lover It could depends on product category and store types

Shopping Orientation 2 Social Experience Sharing of common interests Hedonic Shopping Motive: Social Experience ex. New department store opening Sharing of common interests ex. Golf equipment store, INDY music store, Baby and Kid store Interpersonal attraction ex. hangout places Instant status ex. Dressed up for shopping, feeling good when people treat you as an important person The thrill of the hunt some people pride themselves on their knowledge of the marketplace ex . I know that vintage market, let me lead you there

Retailing as Theatre 2 Landscape themes Marketscape themes Retail Theming: many stores seek to create imaginative environments that transport shoppers to fantasy worlds or provide other kinds of simulation. 4 Basic of theming techniques: Landscape themes nature, Earth, animals, physical body Marketscape themes man-made places ex. Venetian Hotel in Las Vegas Cyberspace themes Image of information and communication technology ex. eBAY interface , I-studio of Apple, Mindscape themes Abstract ideas and concepts, introspection and fantasy, spiritual overtones ex. Spa, boutique hotels

Retailing as Theatre 2 With the concept “the third place” Being Space: convert a store into a being space Ex. Starbuck Coffee provides various styles of living room With the concept “the third place” Relax, entertain, hang out, escape, work Pop Up Store: one kind of being spaces, which is a temporary installations that do business only for a few days or weeks

In-Store Decision Making 2 In-Store Decision Making Spontaneous Shopping: when a shopper suddenly decides to buy something in the store, one of two different processes explains this: Unplanned Buying Mostly, unplanned buying occurs because a shopper recognizes a new need while they are in the store Unfamiliar with a store’s layout, under some time pressure, Seeing items on a store shelf and reminding to the needs Impulse Buying A sudden urge they simple can’t resist Ex. Candy, gum Point of Purchase Stimuli: A POP can elaborate product display or demonstration, a coupon machine, or an employee who gives out free samples of a new cookies Product samples, package displays, place-based media, in-store promotional material, shelf talkers

Postpurchase Satisfaction 3 Postpurchase Satisfaction

Postpurchase Satisfaction 3 Postpurchase Satisfaction Consumer Satisfaction/Dissatisfaction Our overall feelings about a product after we have bought it It plays an important role in future behavior We form beliefs about product performance based on prior experience with the product or communications about the product  certain level of quality

What will we do when we are not satisfied?

Postpurchase Satisfaction 3 Postpurchase Satisfaction What will we do when we are not satisfied? 3 possible courses of action Voice Response You can appeal directly to the retailer Private Response You can express your satisfaction to friends and boycott the product or the store where you bought it Third-party Response You can take legal action against merchant Or write a letter to newspaper

Product Disposal 3

3 Product Disposal How to get rid of products when consumers no longer need or want Recycling is one option that will become more crucial as consumers’ environmental awareness grows Lateral cycling occurs when we buy, sell, or barter secondhand objects

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