1. CHAPTER SEVENTEEN Outlet Selection and Purchase McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 2 CHAPTER 17 Outlet Selection and Purchase Decision Sequence Outlet First, Brand Second Brand First, Outlet Second Simultaneous Influences on store evaluative criteria List and rank evaluative criteria (characteristics) when shopping for: –major grocery shopping trip –buying a quart of milk in a hurry –buying a suit –buying a watch –buying a newspaper

3. 3 CHAPTER 17 Marketing Strategy Based on Decision Sequence

4. 4 CHAPTER 17 So what about the Internet? Break up into groups of three to four people Creatively discuss the Internet as an Outlet Develop a conceptual theory as to why consumers are drawn to the Internet Discuss reasons why consumers are apprehensive toward using the Internet Record your ideas in a form that is presentable

5. 5 CHAPTER 17 The Internet: Online Sales by Categories

6. 6 CHAPTER 17 Class Discussion How would you measure the image of a retail outlet? Does the image of a retail outlet affect the image of the brands it carries? Do the brands carried affect the image of the retail outlet?

7. 7 CHAPTER 17 Figure 17-2

8. 8 CHAPTER 17 Table 17-2

9. 9 CHAPTER 17 In-Store Influences that Impact Alternative Evaluation and Purchase Alternative evaluation Price reductions Sales personnel Stockouts Displays Store Atmosphere Modify intended purchase behavior

10. 10 CHAPTER 17 Supermarket Decisions

11. 11 CHAPTER 17 In-Store Purchase Behavior

12. 12 CHAPTER 17 Sales Impact of Point-of-Purchase Displays

13. 13 CHAPTER 17 The Effect of P-O-P Display Location on Sales of Listerine Mouthwash Percent 120 100 80 60 40 20 0 +11% +141% +162% ShelfRearFrontEndcap Regular price on shelf Feature price/display Average unit sales per store

14. 14 CHAPTER 17 Consumer Insight 17-1 Is it ethical for retailers to set prices with 99 rightmost digits knowing that consumers will interpret the price to be lower than it is? Why don’t consumers simply round up to the next larger number? Wouldn’t it be easier to think of $9.99 as $10.00 rather than as $9.90 or even $9.00?

15. 15 CHAPTER 17 Store Atmosphere

16. 16 CHAPTER 17 Impact of a Stockout Situation