Chapter 17

Chapter 17 - CHAPTER CHAPTER 17 OUTLET OUTLET SELECTION AND PURCHASE PURCHASE 17-1 PART IV CONSUMER DECISION PROCESS PART 17-2 Consumer Behavior In

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER CHAPTER 17 OUTLET OUTLET SELECTION AND PURCHASE PURCHASE 17-1 PART IV: CONSUMER DECISION PROCESS PART 17-2 Consumer Behavior In The News… Consumer What Are the Top 5 Factors Driving Consumer Interest What in an Apparel Retailer? in Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15. 17-3 Consumer Behavior In The News… Consumer Top 5 Factors in Apparel Retailing. Top 1. Latest Trends 1. Latest 2. High-Quality Products 3. Brand Names I want 4. Broad Selection 5. Full Range of Services NOTE: Factors vary by category. Number 1 factor in Factors home products is broad selection. home Source: D. Warmath, “Get in the Game or Lose,” Advertising Age, August 25, 2008, p. 15. 17-4 Outlet Choice Versus Product Choice Outlet 17-5 The Retail Scene The Internet Retailing • • Barriers to Internet Shopping Characteristics of Online Shoppers Store-based Retailing The Internet as Part of a Multi-Channel Strategy 17-6 The Retail Scene The Internet Retailing Internet retailing continues to evolve and grow as a strong retail channel: 17-7 The Retail Scene The Online Sales by Online Categories in Billions Categories 17-8 The Retail Scene The Consumers shop online for reasons similar to those for Consumers shopping from catalogs: shopping 17-9 The Retail Scene The Barriers to Internet Shopping Barriers Many barriers still exist to online purchasing, not the least of which is the lack of Internet access. However, many who are online still have never made a purchase. A recent study found the following reasons among those who are online who have never made a purchase: 17-10 The Retail Scene The Characteristics of Online Shoppers Shopping Lovers The following are results of a study which identifies the following eight online shopper segments: Adventurous Explorers Suspicious Learners Business Users Fearful Browsers Shopping Avoiders Technology Muddlers Fun Seekers 17-11 The Retail Scene The Store-based Retailing Store-based The following are the results of a Roper survey asking consumers why they don’t like shopping in stores: 17-12 The Retail Scene The Store-based Retailing In-store shopping is perceived as neither fun nor efficient by many. Retailers are fighting back with store-based activities and technologies to improve the experience: Brand stores add Brand value by providing a fun shopping environment environment 17-13 Applications in Consumer Behavior Applications Store-based Retailing This Wal-Mart ad shows one of the many ways store-based retailers add value for their customers – namely providing a fun shopping environment. Courtesy Wal-Mart Stores, Inc. 17-14 The Retail Scene The The Internet as Part of a Multi-Channel Strategy A multi-channel retail strategy approach is becoming increasingly essential. This approach can take on many forms and relates to the shifts in consumer shopping patterns. Over 70% of the top 100 online retailers in the U.S. are multi-channel retailers. Multi-channel shoppers are consumers who browse and/or purchase in more than one channel. 17-15 The Retail Scene The The Internet as Part of a Multi-Channel Strategy 17-16 Attributes Affecting Retail Outlet Selection Attributes Retail outlet selection involves a comparison of the Retail alternative outlets on consumer’s evaluative criteria: alternative Outlet Image Retailer Brands Retail Advertising Outlet Location and Size 17-17 Attributes Affecting Retail Outlet Selection Attributes Outlet Image Bricks-and-Mortar Image 17-18 Attributes Affecting Retail Outlet Selection Attributes Outlet Image Online Image 17-19 Attributes Affecting Retail Outlet Selection Attributes Retailer Brands Store brands are closely related to store image, and at the extreme, the store or outlet is the brand. Traditionally, retailers carried only manufacturers' brands, and only a few, such as Sears and Wards, developed their own brands. Increasingly retailers such as Wal-Mart and Target are developing and promoting high-quality brands with either the store’s name or an independent name. The key to success of store brands--high quality at a high reasonable price. reasonable 17-20 Attributes Affecting Retail Outlet Selection Attributes Retail Advertising Expenditure of Individuals Drawn to a Store by an Advertised Item Source: The Double Dividend. (New York: Newspaper Advertising Bureau Inc., February 1977. 17-21 Attributes Affecting Retail Outlet Selection Attributes Outlet Location and Size Location and size play an important role in store choice. All else equal, consumers generally select the closest store. Outlet size is also important. Generally, customers prefer larger outlets over smaller outlets. The retail attraction model, or the retail gravitation retail model, is used to calculate the level of store attraction model based on store size and distance from the consumer. 17-22 Consumer Characteristics and Outlet Choice Choice Two consumer characteristics that are particularly relevant Two to store choice: to 1. 2. Perceived Risk Perceived Shopping Orientation Shopping 17-23 Consumer Characteristics and Outlet Choice Choice Shopping Orientation: Part I 17-24 Consumer Characteristics and Outlet Choice Choice Shopping Orientation: Part II 17-25 In-Store and Online Influences on Brand Choices Choices Supermarket Decisions: Two-Thirds Are Made In-Store 17-26 In-Store and Online Influences on Brand Choices Choices Strategies used by manufacturers and retailers to influence Strategies in-store and online decisions: in-store 1. 2. 3. 4. 5. 6. Point-Of-Purchase Materials Point-Of-Purchase Price Reductions and Promotional Deals Price Outlet Atmosphere Outlet Stockouts Stockouts Web Site Functioning and Requirements Web Sales Personnel Sales 17-27 In-Store and Online Influences on Brand Choices Choices Point-Of-Purchase Materials Point-Of-Purchase Shelf-Based Point-of-Purchase Materials Shelf-Based 17-28 In-Store and Online Influences on Brand Choices Choices Price Reductions and Promotional Deals Price reductions and promotional deals • coupons • multiple-item discounts, and • gifts are generally accompanied by the use of some point-ofpurchase materials. 17-29 In-Store and Online Influences on Brand Choices Choices Outlet Atmosphere 17-30 In-Store and Online Influences on Brand Choices Choices Stockouts Stockouts occur when the store is temporarily out of a Stockouts particular brand. Results in… 17-31 In-Store and Online Influences on Brand Choices Choices Web Site Functioning and Requirements Consumers often research online then buy in traditional stores. However, losses also occur during the online shopping process. A DoubleClick study found the following reasons for shopping cart abandonment: 17-32 In-Store and Online Influences on Brand Choices Choices Sales Personnel The effectiveness of sales efforts is influenced by the interaction of • the salesperson’s knowledge, skill, and authority • the nature of the customer’s buying task • the customer-salesperson relationship In the online context, marketers are testing online sales clerks, called avatars, that interact with customers as they avatars shop on their web site. 17-33 ...
View Full Document

This note was uploaded on 02/08/2011 for the course MKT 374 taught by Professor Watson during the Spring '10 term at Rutgers.

Ask a homework question - tutors are online