1. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-1 Chapter 6: Outlet selection and product purchase

2. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-2 Outlet selection and product purchase A further step in the consumer decision making process

3. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-3 Chapter 6: Outlet selection and product purchase How the traditional retailing environment is changing Trend towards internet retailing Factors that affect retail outlet selection Why consumer characteristics can also affect outlet selection In-store influences that can affect brand choice How marketers can capitalise on these influences

4. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-4 Consumer outlet selection and product purchase Where will consumers shop? How do they choose a retail outlet? – Consumer characteristics – Store characteristics In-store decision alterations The purchase process Alternative to store selection Implications for strategy

5. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-5 Outlet choice vs product choice Brand (or item) first, retail outlet second Retail outlet first, brand second Brand and retail outlet simultaneously

6. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-6 Marketing strategy based on the consumer decision sequence

7. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-7 Retailers use quality brands to promote the store

8. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-8 Use of advertising to create brand demand and direct consumers to outlets

9. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-9 The retail scene In retail stores Other outlets, non-store outlets – Internet sales – Markets, direct sales, etc.

10. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-10 Online shopping Increasing number of consumers preferring to shop online - 5% in 1999 to 31% in 2004-5 Females now using the internet – Males 64%, females 62% Image of the outlet influenced by: – Webpage design – Convenience – Security – Pricing

11. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-11 Online shopping by age groups

12. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-12 Reasons for not purchasing on the internet

13. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-13 Attributes affecting retail outlet selection Outlet image – A consumer’s or a target market’s perception of all the attributes associated with a retail outlet

14. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-14 Dimensions and components of store image Dimension  Merchandise  Service  Clientele  Physical features  Convenience  Promotion  Store atmosphere  Institutional  Post-transaction Component(s)  Quality, selection, price, style  Sales assist., return, credit  Customers  Clean, layout, etc.  Location, parking  Advertising  Fun, excitement, comfort  Store reputation  Satisfaction

15. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-15 Attributes affecting retail outlet selection Store image Retail advertising – Price advertising  size of discount  reference/comparison may be used  words accompanying the price information Outlet location and size

16. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-16 Expenditure of individuals drawn to a store by an advertised item

17. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-17 Outlet location and size: retail attraction model MS i = market share of store i S i = size of store i (or mall) T i = travel time to i  = attraction factor for a particular product category = MS i S i / T i n  i  S i / T i

18. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-18 Consumer characteristics and outlet choice Shopping orientation Perceived risk – Financial risk – Social risk

19. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-19 Financial and social risks for various types of products

20. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-20 Reducing health risk via endorsement

21. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-21 In-store influences that impact on evaluation of alternatives and purchase

22. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-22 In-store influences that alter brand choices The nature of unplanned purchases – Reminder purchases – Impulse purchases

23. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-23 In-store influences that alter brand choices (cont.) The nature of unplanned purchases – The specifically planned decision – The generally planned decision – The substitute decision – The unplanned decision – The in-store decisions

24. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-24 Encouraging unplanned purchases - ‘gift-time’ and suggesting products

25. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-25 In-store buying habits

26. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-26 Point-of-purchase (POP) displays A device used by marketers and retailers at the point of sale to inform consumers or encourage them to buy; may comprise posters, cards, shelf wobblers, etc.

27. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-27 Point-of-purchase (POP) displays

28. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-28 Shopper behaviour in response to frequent stockouts

29. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-29 Impact of stockout situation

30. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-30 Store atmosphere and shopper behaviour

31. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-31 Summary We have discussed: How the traditional retailing environment is changing The trend towards internet retailing Factors that affect retail outlet selection Why consumer characteristics can also affect outlet selection In-store influences that can affect brand choice How marketers can capitalise on these influences

32. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 6-32 Next lecture Chapter 7: Postpurchase processes, customer satisfaction and consumer loyalty