CHAPTER 11 CONSUMERS IN SITUATIONS WHAT DO YOU THINK POLLING QUESTION I never let anything get in the way of preparing for my consumer behavior class. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: L01 Understand how value varies with situations. L02 Know the different ways that time affects consumer behavior. L03 Analyze shopping as a consumer activity using the different categories of shopping activities. L04 Distinguish the concepts of unplanned, impulse, and compulsive consumer behavior. L05 Use the concept of atmospherics to create consumer value. L06 Understand what is meant by antecedent conditions. SUGGESTED LECTURE OPENER Using coupons to encourage consumer purchasing is nothing new. Using a cell phone to deliver and personalize those coupons is definitely new. This application allows marketers to instantly provide targeted incentives to consumers. Consumers benefit by receiving deals on items they are potentially already out shopping for, and the coupons are instantly redeemable. [Source: Sarah Haughey, “Coupons? There’s an App for That,” The San Francisco Examiner, August 15, 2010, http://www.sfexaminer.com.] LECTURE OUTLINE WITH POWERPOINT® SLIDES Slide 1 Slide 2 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 LO1. Understand how value varies with situations. Value in Situations? Slide 3 Q: By a show of hands, ask students who likes to shop. What was their most unique shopping experience? Do they prefer to shop in stores or online? A: Students might state that a regular shopping experience is buying groceries or shopping for clothes for a night out, while shopping at the Mall of America or at Harrods is an example of a unique shopping experience. Answers will vary about online versus in-store preferences. Situations and Value Situational influences are factors that cause the value that a consumer obtains from a purchase or consumption act to vary based on the context in which the act takes place. Situational influences are classified into three categories: 1. Time – Time can influence the way information is processed depending on how much time the consumer has to make the purchase. 2. Place – Place can frame any purchase. When at the movies, popcorn becomes more valuable. 3. Conditions – Weather and social situations can influence a person’s choice for a product. Slide 4 Slide 5 Slide 6 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 LO2. Know the different ways that time affects consumer behavior. Time and Consumer Behavior Slide 7 Time is a critical factor and necessary for consumption to occur. Time can affect consumption in any of the following forms: Time pressure Time of year Time of day/circadian cycles Time Pressure Time pressure is an urgency to act based on some real or self-imposed deadline. Time pressure affects consumers in several ways: Consumers process less information when time is scarce. Consumers are more likely to rely on simple choice heuristics. Consumers may only rely on price and quality instead of other attributes. Thus, brands that position themselves as high quality might benefit from situations in which consumers are characterized by time pressure, even if the price is high. Time of Year Seasonality refers to regularly occurring conditions that vary with the time of year. Fireworks are not worth as much to consumers in the middle of February. Other not so obvious effects of seasonality include the time of day that consumers shop in the winter months as well as their spending habits. Time of Day/Circadian Cycles What’s the most popular drink of the Danes, Italians, and French in the morning? Coffee! What’s the most popular drink of the United Kingdom and many parts of Asia? Tea! Whether it’s beverage consumption, attire, or choice of entertainment, the time of day affects the value of products and activities. The circadian cycle refers to the rhythm within our bodies that varies with the time of day. A circadian cycle determines our body’s natural rhythm. The daily ups and downs that accompany natural circadian rhythms can be annoying and interfere with normal activities. Thus, ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 when consumers find a product that helps them cope with the down times associated with circadian rhythms, that product is likely to offer value. Slide 8 Ask which of your students are morning persons and which are night persons. Have their online social networking habits changed whether they are morning or night people? Advertiming Advertiming is an advertising schedule that primarily runs an advertisement at times when customers will be most receptive to the message. It can also be based on seasonal patterns or day-to-day changes in the weather. Swimming pool marketers know that consumers are more receptive to their ads in the spring or summer. Slide 9 LO3. Analyze shopping as a consumer activity using the different categories of shopping activities. Place Shapes Shopping Activities ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Slide 10 Introduction Shopping is not only an activity but an important component of the U.S. economy. Many activities in the CVF and consumer behavior theory in general take place in the shopping process. What exactly is shopping? The following questions can help put shopping in perspective. 1. Do consumers have to buy to shop? 2. Is a store necessary for shopping? 3. What motivates consumer shopping? A physical location is no longer required for shopping to take place. Married consumers report that one of the main reasons for not shopping with a spouse is time pressure. Men see an advantage to shopping together to reduce the financial risk by making joint decisions. Consumers appear to have more pleasure when shopping alone or with a friend as opposed to shopping with a family member. Slide 11 Q: Ask students where they like to shop and to describe their shopping activities. Who do they usually shop with? A: Answers may include catalogs, online, or in stores. Answers will vary about who they shop with. What Is Shopping? The shopping activity ranges from surfing the Internet for a song to download or visiting the mall for a new item. Shopping can be looked at as the inverse of marketing. Shopping is the set of ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 value-producing consumer activities that directly change the likelihood that something will be purchased. Shopping Activities Shopping activities take place over time in specific places under specific conditions or contexts. They can be divided into four different types. Any given shopping experience is characterized by at least one of these types. They are: 1. Acquisitional Shopping – Activities oriented toward a specific, intended purchase or purchases. 2. Epistemic Shopping – Activities oriented toward learning about products. 3. Experiential Shopping – Recreational-oriented activities designed to provide interest, excitement, relaxation, fun, or some other desired feeling. Outshopping is a term used to refer to consumers who are shopping in a city or town that they must travel to rather than in their own hometown. Outshopping is often motivated simply by the desire for the experience. 4. Impulsive Shopping – Spontaneous activities characterized by a diminished regard for consequences and a desire for immediate self-fulfillment. Exhibit 11.2 provides an example of each type of shopping activity and ties the activities to the types of value to which they are most associated. Slide 12 Slide 13 Shopping Value All shopping activities are aimed at one key result: value. Personal shopping value (PSV) is the overall subjective worth of a shopping activity when considering all associated costs and benefits. PSV can be divided into two types: utilitarian shopping value is a value that pertains to the worth obtained because some shopping task or job is completed. Hedonic shopping value is the value that pertains to the worth of an activity because the time spent doing the activity itself is personally gratifying. Slide 14 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Retail Personality The definition of a retail personality is the way in which a retail store is defined in the mind of a shopper based on the combination of functional and affective qualities. The two retail personality dimensions are extremely useful when viewed as a perceptual map. 1. Affective quality – This quality refers to positioning a unique environment, an impressive décor, friendly employees, and pleasant emotions that can provide relatively high hedonic shopping value. 2. Functional quality – This quality refers to positioning a store by using things such as a wide selection of goods, low prices, guarantees, and knowledgeable employees that can provide a high proportion of utilitarian shopping value. Slide 15 Q: Ask students which quality has an impact on their shopping experiences: the functional or the affective quality. Why? A: Student answers will vary. LO4. Distinguish the concepts of unplanned, impulse, and compulsive consumer behavior. Impulsive Shopping and Consumption Slide 16 So, just what is a compulsive consumption act? As the definition implies, impulsive consumption involves consumption acts that are characterized by the following three components: 1. They are spontaneous and involve at least short-term feelings of liberation. 2. They are associated with a diminished regard for any costs or consequences. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 3. They are motivated by a need for immediate self-fulfillment and are thus usually highly involving emotionally. The more any activity contains relatively high amounts of these characteristics, the more likely that act is impulsive. For example, a consumer might have a bad morning at work and decide to cancel a business lunch to take a shopping break for self-gifts or “happies” via the Internet. The behavior can be broken down as follows to demonstrate the impulsiveness involved: 1. The act involves willingly deviating from previous plans and thus shows spontaneity and feelings of liberation from the negative events of the day. 2. The act shows diminished regard for the consequences of missing the business lunch or for any expense incurred. 3. The act fulfills the need to maintain a positive outlook on the self and thus provides hedonic value. Impulsive versus Unplanned Consumer Behavior Use Exhibit 11.4 to discuss the relationship between impulsive and unplanned consumer activity. The right side of the Exhibit illustrates that unplanned consumer acts, such as shopping, are characterized by the following factors: Situational memory – Situational memory characterizes unplanned acts because something in the store (e.g., a display) triggers the need for the item, such as a pack of gum. Utilitarian orientation – A utilitarian orientation fulfills the need to replenish the supply of a product. Spontaneity – Spontaneity implies “without forethought.” Slide 17 Distinguishing Impulsive and Unplanned Consumer Behavior The line between impulse and unplanned is not always clear. Some unplanned acts are impulsive, and many impulsive acts are unplanned. For years, Las Vegas tourism has used a tagline that states: “What Happens in Vegas, Stays in Vegas.” The tagline emphasizes the impulsive nature of consumer behavior in Las Vegas. Certainly, the campaign highlights the heightened hedonic value that can be obtained and encourages consumers not to worry about the consequences. Go to YouTube (www.youtube.com), and show students some of the Las Vegas TV spots. Students generally like these commercials and can relate well to them. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Susceptibility to Situational Effects All consumers are susceptible to unplanned and impulsive behavior, but not all equally. Impulsivity is a personality trait that represents how sensitive a consumer is to immediate rewards. For example, consumers with attention deficit disorder typically have high degrees of impulsivity, which makes them more prone to impulsive acts. Consumer Self-Regulation A key personality trait that affects a consumer’s tendency to do things that are unplanned or impulsive is self-regulatory capacity. Consumer self-regulation is a tendency for consumers to inhibit outside, or situational, influences from interfering with shopping intentions. Consumers tend to be referred to as either of the following: 1. Action-oriented consumers – These consumers have a high capacity to self-regulate their behavior and are not affected by feelings of dominance in the environment. 2. State-oriented consumers – These consumers have a low capacity to self-regulate their behavior and are affected by feelings of dominance in the environment. This type of consumer is more apt to buy a product in an upbeat electronics store. Exhibit 11.6 lists questions that can distinguish consumers based on self-regulatory capacity. Slide 18 Slide 19 Impulsive versus Compulsive Behavior Although impulsive and compulsive behaviors share many of the same characteristics, there are differences between the two. Compulsive consumer behavior: 1. Is harmful. 2. Seems to be uncontrollable. 3. Is driven by chronic depression. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Slide 20 LO5. Use the concept of atmospherics to create consumer value. Places Have Atmospheres Slide 21 Retail and Service Atmospherics The term atmospherics pertains to the emotional nature of an environment or, more precisely, to the feelings created by the total aura of physical attributes that comprise the physical environment. View Exhibit 11.7 for a partial list of atmospherics and the qualities of an environment. Atmospherics can be affected by both the functional and affective qualities. Servicescape is a term used to refer to the physical environment in which consumer services are performed. Each servicescape has its own unique environment. Slide 22 Slide 23 Functional Quality The functional quality of an environment describes the meaning created by the total result of the attributes that facilitate the function and make it perform efficiently. In a shopping environment, this includes convenience in all of its forms: price levels, number and helpfulness of employees, breadth and depth of merchandise, and other characteristics that facilitate the shopping task. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Affective Quality The affective quality represents the emotional meaning of an environment, which results from the sum effect of all ambient attributes that affect the way a consumer feels in that place. It appears that female shoppers are more demanding and react more negatively when this element is missing. Q: Ask students whether a retail environment with a distinctly high functional quality necessarily has an uninteresting or poor affective quality. A: Quite the contrary! An environment with a favorable functional quality also could be associated with some degree of positive affect. Adolescent girls, for example, find an environment with high levels of functional qualities, such as accessibility and safety features, to also be more pleasing places to shop. Atmosphere Elements The way that an atmosphere makes a consumer feel is actually determined by the consumer’s perception of all of the elements in a given environment working together. The two factors that help merchandisers and retail designers create this atmosphere are the following: 1. Fit – Designates the appropriateness of the elements in a given environment. 2. Congruity – Designates how consistent the elements of an environment are with one another. Odors Odors are prominent environmental elements that affect both a consumer’s cognitive processing and affective reaction. The Knot Shop uses the smell of tobacco and leather to show that the environment is masculine. Olfactory refers to a human’s physical and psychological processing of smells. While shoppers process ambient citrus odors, the odors tend to make consumers feel more relaxed and receptive to product information. Music Music affects consumer shopping experiences. Whether the music is fast or slow, consumers will show either a willingness or an avoidance to shop based on this factor. For example, consumers who dislike rap or country music will likely have a difficult time shopping in a place playing loud rap or country music. Foreground music is music that becomes the focal point of attention. Foreground music can have strong effects on a consumer’s willingness to approach or avoid an environment. Background music is music played below the audible threshold that would make it the center of attention. Typically, service providers use this type of music for a retail setting. The effects of background music include the following: 1. The speed of background music determines the speed at which consumers shop. Slower music means slower shopping, and faster music means faster shopping. 2. The tempo of music affects the patience of consumers. Faster music makes consumers less patient. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 3. The presence of background music enhances service quality perceptions relative to an environment with no background music. 4. Pop music used in the background contributes to discount store perceptions. 5. Incongruent music lowers consumers’ quality perceptions. Color Some colors are preferred more than other colors, but personal preference isn’t really the key to understanding consumer reactions to color. The following are a few examples of how color affects consumers: Blue – The most universal color and presents few cultural taboos. Red, black, and white – Present cultural variables and may represent bad omens or death in some cultures. Red and orange – May signify poor quality and low price expectations. Slide 24 Merchandising The social environment refers to the other customers and employees in a service or shopping environment. The type of salespeople will affect the shopping experience. A cosmetic salesperson must fit the appearance of the product being sold. Ask students if they prefer to shop online because of poor experiences they have had in stores, either with salespeople or the mood, music, or odors they might experience while in a store. Social Settings The term crowding refers to the density of people and objects within a given space. Crowding actually exerts a nonlinear effect on consumers; meaning that a plot of the effect times the amount of crowding does not make a straight line. Exhibit 11.9 illustrates how crowding affects consumers. An empty store might indicate a sign of poor-quality merchandise. A savvy retailer knows that moving displays around will create a better shopping environment. Salespeople and service providers are an important source of information and influence. Source attractiveness is the degree to which a source’s physical appearance matches a ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 consumer’s prototype for beauty and elicits a favorable or desired response. Social comparison is a naturally-occurring mental personal comparison of the self with a target individual. Slide 25 Slide 26 Virtual Shopping Situations Many effects that are evident in “bricks and mortar” shopping environments are also evident in the virtual shopping world. For example, the effects of color and sound work in much the same way. A website with a blue background can enhance quality perceptions just as easily as the background in a physical store. LO6. Understand what is meant by antecedent conditions. Antecedent Conditions Slide 27 Antecedent conditions are situational characteristics that a consumer brings to a particular information-processing, purchase, or consumption environment. Antecedent conditions include economic resources, mood, and other emotional perceptions, such as fear, and they can shape the value in a situation by framing the events that take place. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Slide 28 Economic Resources Buying power – Found in the form of cash on hand, credit card spending limits, or money available by draft or debit card. Thus, consumer buying power may determine where people shop. Consumer Budgeting – While the majority of consumers do not perform a formal budgeting process, consumers who do budget end up with different spending habits than those who do not. Generally, budgeting is associated with frugality. Even consumers who do not prepare a formal budget do perform mental budgeting, which is an accounting from memory for recent spending. Orientation When consumers enter each exchange environment, they may have natural tendencies toward one shopping orientation or another. Gift shopping can dramatically shift a shopper’s orientation and change the shopping experience altogether. Mood Each consumer brings their current mood to the particular consumption situation. Consumers in particularly bad moods may be prone to binge consumption, such as eating an entire bag of Matt’s Chocolate Chip cookies. Mood can also affect shopping. The mood that consumers bring to the shopping environment can exaggerate the actual experience. Shoppers who go shopping in a bad mood are particularly prone to buying less and experiencing lower consumer satisfaction than consumers who are in good moods. Security and Fearfulness Consumers today live with the ever-present reminders of vandalism, crime, and even terrorism. Shopping malls, markets, airports, and other places where large numbers of consumers gather are consistently mentioned as potential terrorist targets, thus providing another reason for consumers to feel less secure. Fearfulness can affect consumers in multiple ways: Consumers who go shopping in a fearful mood will not go about their shopping in the same manner. Fearful consumers will tend to buy less and enjoy the experience less. Consumer may cope with the fear of shopping by utilizing non-store outlets, such as the Internet, as a seemingly safer means of doing business. Retailers can enhance the shopping experience for consumers by making them feel safe in a number of ways, which are discussed in Exhibit 11.10. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Slide 29 VIDEO CLIP PowerPoint Clip from Murray’s Cheese Run time 1:43 minutes Slide 30 Murray’s Cheese is dairy retailer that has grown in recent years from a single counter to a multistore, wholesale business with a partnership with a large chain of grocery stores. One of the keys to Murray’s success lies in its employees who do more than just sell cheese. Counter mongers walk customer’s through an experience helping them to learn and choose the cheese that is right for their taste and occasion. Part of the experience involves tasting the cheese. This helps customers make informed decisions and also provides Murray with immediate product feedback. This strategy also involves providing promotional cheeses for sampling at the counter to increase sales from a single cheese to multi-cheese. Ask your students: 1. What type of shopping value does Murray’s provide for its customers? Answer: Murray’s provides a personalized, friendly, and sensory shopping experience that engages consumers. 2. Why does at-counter tasting help promote Murray’s Cheese sales? Answer: Allowing consumers to interact directly with the product, particularly because it is a food product, helps consumers to make an informed decision, rather than purchasing a product they do not understand or with which they are unhappy. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 END OF CHAPTER MATERIAL REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] What exactly are situational effects on consumer behavior? Provide at least three examples of ways in which situational effects influence your own consumer behavior. Provide at least one example of how situations influence brand preference, one example of how situations stimulate purchases, and one example of how situations cause you to pay more than you might otherwise pay. Answer: Situational effects are contextual effects, meaning that they are independent of enduring consumer, brand, or product characteristics that influence consumer decision making and the value received from consumption. Potential examples include the following: Brand preference – A consumer might prefer Levis but, while shopping with friends, is encouraged to try Seven for All Mankind jeans. If shopping alone, the consumer may not have experienced this influence. Therefore, the social context influenced brand preference. Stimulate purchase – A sudden rain shower may cause consumers to purchase an umbrella. Such behavior can be seen in downtown areas and amusement parks, for example. Pay more money – Time and place can come together to influence how much money a consumer will pay. Consumers going to Florida for Spring Break are probably prepared to pay more for a simple hotel room than they might otherwise. This situation would be compounded if the consumers arrive in Ft. Lauderdale late one night and only a few hotels have vacancies. 2. [LO1] How does a situational influence change value for consumers? For example, how does the value of different types of restaurants change for a consumer who only has 25 minutes to have lunch? Answer: The time limit may shift the consumer away from any hedonic motivation. Rather than finding a place for lunch that he or she would truly enjoy and find relaxing, the consumer will simply choose something nearby that provides a quick meal. Therefore, utilitarian value becomes a priority. 3. [LO2] Define the term temporal factors. What are the different ways in which temporal factors can influence consumer behavior? Which do you think are strongest? Answer: The term temporal factors is sometimes used to refer to situational characteristics related to time. Temporal factors include time pressure, time of day, time of year, and time of life. Determining which factor possesses the strongest type of temporal influence is a matter of opinion. This part of the question focuses on generating some elaborative thinking on the part of students that will ideally prompt them to think of situations when temporal factors have played a role in their own consumption. Time pressure may be argued as the ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 strongest factor because certain needs must be addressed right away (toothache). Time of year determines the type of clothes people wear, foods people eat, and activities that consumers enjoy. Time of day determines similar issues (e.g., office clothes, workout clothes, evening clothes; going to work, eating, sleeping). 4. *[LO2] How does time pressure affect consumer behavior? Name at least two businesses or industries whose survival depends on consumer segments that experience high amounts of time pressure. Answer: Time-related factors, such as time pressure, can affect consumer thoughts, feelings, and behavior, all of which coalesce to create differing perceptions of value. These factors illustrate how certain goods or services take on added value due to time pressure: FedEx/Kinko’s – This establishment provides copying, printing, and other related services on demand and many times at locations open around the clock. Fast food restaurants – These establishments provide food for the segment of consumers without enough time for a more elaborate meal. Express delivery services – These establishments exist for consumers who need to get packages or documents somewhere in a hurry. If the consumer has procrastinated, express delivery may be the only viable option (have students check FedEx web site for prices based on how fast a letter or package is delivered). 5. [LO2] What is the concept of advertiming? Is advertiming a good thing for marketers and for consumers? Answer: Companies occasionally buy advertising with a schedule that runs the advertisement primarily at times when customers will be most receptive to the message. Advertiming also can be based on seasonal patterns or even on day-to-day changes in the weather. The second part of the question should generate discussion to prompt students to consider the benefits and detriments of advertiming. Some students may form the opinion that advertiming is just another marketing ploy to generate sales; therefore, only marketers would win. Other students may form the opinion that advertiming allows consumers to satisfy their desires and receive value from timely purchases; therefore, both marketers and consumers win. 6. [LO3] Define shopping. What are the two key dimensions of PSV? Answer: Shopping can be defined as the set of value-producing consumer activities that directly increase the likelihood that something will be purchased. The two key dimensions of personal shopping value are utilitarian shopping value and hedonic shopping value. 7. *[LO3] What are the different types of shopping activities in which consumers participate? What types of value would you associate with each? Can a retail website be designed to cater specifically to each type of orientation? Explain. Answer: Exhibit 11.2 describes how value types might vary across different types of shopping activities. The different types of shopping activities are: Acquisitional shopping – These activities carry predominantly utilitarian value, although acquisitional shopping does not rule out hedonic value. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 Epistemic shopping – These activities could provide either or both types of value depending largely on whether consumers have ongoing or situational involvement in the category. Experiential shopping – These activities are oriented toward hedonic value based on the role of the experience itself. Impulsive shopping – Heightened emotion is associated with hedonic shopping value, but it does not rule out utilitarian value based on what might be purchased. A website can be designed to cater specifically to each value type based on the relative degree of functional versus affective qualities. The chapter contains a list of items that can influence impulse purchases. By building in some of these factors (e.g., making payment easy), web sites can cater to impulsive buyers while also facilitating acquisitional shoppers. However, factors that may heighten the shopping experience, such as games or animations, may distract from acquisitional shopping value. 8. [LO4] Define impulse, unplanned, and compulsive shopping. List three examples of impulse, unplanned, and compulsive consumer behavior. Explain each using the characteristics of each type of behavior. Answer: Impulsive shopping can be defined as spontaneous shopping activities characterized by a diminished regard for consequences, heightened emotional involvement, and a desire for immediate self-fulfillment. Examples could include leaving for the weekend even though there is a big test on Monday, getting dessert in a restaurant even though you are on a diet, and buying a new outfit for yourself during your lunch hour instead of buying your sister’s birthday gift because the outfit had just been placed on the sales floor and you had not seen it previously. Unplanned shopping shares some, but not all, characteristics of truly impulsive shopping. Exhibit 11.4 illustrates the relationship between impulsive and unplanned consumer activity. The right side of the Exhibit demonstrates that unplanned consumer acts are characterized by situational memory, utilitarian orientation, and spontaneity. Examples could include almost any item that consumers buy when they actually need the product but simply forget to buy it until they reach the point of sale. Grocery store items that are not on the shopping list also qualify. Compulsive shopping consumer behavior can be distinguished from impulsive consumer behavior. The three distinguishing characteristics are: Compulsive shopping is harmful. Compulsive shopping seems uncontrollable. Compulsive shopping is driven by chronic depression. Examples could include excessive casino gambling to the point where harm is being done to the individual and/or the individual’s family or chronic buying of shoes to the point where a consumer cannot pay for all of the shoes purchased. Drug and alcohol purchase and consumption can become compulsive once the activities interfere with other personal responsibilities. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 9. [LO4] What are the key distinctions between impulse, unplanned, and compulsive consumer behaviors? Answer: This answer is touched upon in the answer to Question 9. Impulsive consumer behavior can be distinguished from unplanned consumer behavior by heightened emotional involvement and diminished regard for any consequences as opposed to behavior largely driven by situational memory and utilitarian value. Compulsive consumer behaviors are best distinguished from impulsive consumer behaviors based on their relative harmfulness. 10. *[LO5] What is the sequence of events through which atmosphere might encourage a purchase? Use an example to illustrate your answer. Answer: Atmosphere is the effect of the retail environment, and perceptions of the environment stimulate thoughts. The thoughts evoke feelings that influence behavior, and this consumer behavior generates value. For example, a consumer on vacation at Disneyworld’s Magic Kingdom has thoughts shaped by the festive atmosphere. These thoughts shape the consumer’s feelings, and these feelings make the consumer more likely to purchase a souvenir item (e.g., T-shirt, décor item, hat). 11. [LO5] Define atmosphere. List local dining establishments with unique atmospheres. What qualities make them unique? Are the restaurants distinguished more by functional or affective qualities? Answer: In consumer behavior, atmospherics refers to the emotional nature of an environment or, more precisely, to the feelings created by the total aura of physical attributes that comprise the physical environment. The second part of the question prompts students to elaborate on the difference between the functional and affective qualities of environments by describing familiar eating establishments. For example, Lambert’s Café, “home of the throwed rolls,” provides a humorous and upbeat atmosphere that adds to the value of the dining experience. Lambert’s Café has functional restrooms but no waiting lounge. Jokes are written on the floor, on walls, on rocking chairs, and on tables on the porch. If students have difficulty producing examples, you might contrast something like a Luby’s Cafeteria with a Hooters restaurant. 12. [LO5] A consumer is doing some virtual shopping. How might color influence the perceived value of a product viewed on a retail website? Could music also influence the perceived value of the website product? Answer: The color blue, or a cooler color in general, is associated with higher product quality than warmer colors, such as orange or red. However, warmer colors may attract attention to a specific part of the web site. Music could also influence consumers by affecting the rate at which they shop and are willing to remain viewing a given page. Faster music would make the consumer go faster. These effects would mirror those found in real shopping environments. 13. [LO5] List at least three ways in which social influences affect consumer behavior. Answer: Social influences affect consumer behavior in the following ways: ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 An environment can be so crowded that a shopper becomes distressed and leaves without finishing the shopping experience. The distress lowers any potential hedonic value. If the originally intended items are not purchased, utilitarian value is also lowered. An environment can also contain so few consumers that it becomes boring and potentially uncomfortable for a consumer to enter. If a consumer were the only one in a hair salon at a large mall, he or she may feel that the quality may not be high and also feel too much like the object of attention. The number and type of salespersons can also influence consumers. More salespeople are generally associated with more purchasing. Salespeople should also look and act appropriately for the type of sales setting. Attractive others can cause upward social comparisons that diminish the value or products and lower the chance of purchase. This is particularly true when the attractiveness has little to do with the value being delivered. Other shoppers can also influence consumers. Shopping buddies, for example, are usually associated with increased purchasing. 14. [LO6] What is meant by antecedent conditions? How do they shape the value of objects? Answer: Antecedent conditions refer to situational characteristics that a consumer brings to a particular information-processing, purchase, or consumption environment. They can shape value in a situation by framing the events that take place. They include economic resources, consumer orientation, mood, and fears. 15. [LO6] What steps can a retailer take to deal with fear as a potential antecedent condition of consumers? Answer: Exhibit 11.10 illustrates some of these steps. They include: Increase the number and visibility of security personnel. Increase the number and prominence of security cameras in parking lots. Have brightly lit parking lots. Add carry-out service for consumers, particularly those shopping alone. Maintain an uncrowded, open entrance. Clearly mark all exits. Prevent loitering. Discourage gangs from visiting the center. INTERACTIVE/APPLICATION EXERCISES 16 Earlier in the text, individual difference characteristics such as personality were discussed. Do you believe that situational characteristics or individual differences have a greater effect on consumer behavior? Write a 300-word report explaining your choice. Answer: While some academic research addresses this issue and points to the relative strength of situational effects, there is no real right or wrong response here. However, the question does force students to review these aspects of the CVF and develop a deeper understanding of situational characteristics and individual differences. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 17. If you were creating a fashion store to cater to students at your local university, how would you position it in terms of functional and affective qualities? What environment characteristics would be used to implement this positioning? Would this environment tend to be oriented more toward creating hedonic or utilitarian value? Answer: The focus is to have students use information summarized in Exhibit 11.7 to develop a position. Affective qualities are mostly associated with hedonic shopping value. Functional qualities contribute more strongly to utilitarian shopping value. Thus, the positioning really depends on whether students believe that the consumers in their local market are more functionally oriented and thus just looking for a place to buy clothes when they need them or are instead the types of shoppers who will go to this store whether they have something specific to buy or not. In other words, the latter group is looking for an experience that would be characterized by an emphasis on affective qualities and hedonic shopping value. Think also too about the attractiveness of the salespeople and how that might influence the experience. 18. *Take a look at 35 Internet retail sites for multichannel retailers (meaning those with both physical stores and virtual shores), such as www.harrods.com. Is the real shopping environment or the virtual shopping environment likely to have a greater impact on consumer behavior? Explain your choice. Answer: There is no right or wrong answer to this question. This is an opportunity for students to elaborate on the characteristics of situational influences by arguing that the place characteristics are either stronger or weaker in either real shopping or virtual shopping environments. 19. What characteristics can be used to encourage unplanned and/or impulse purchases? Is it morally right or ethical to take steps to encourage unplanned or impulse purchases? Prepare a short essay defending your choice. Answer: Exhibit 11.5 provides the list of factors that can encourage impulsive consumer behavior, including purchasing behavior. While students may develop various opinions, one key point is that both unplanned and impulsive shopping and consumer behavior are viewed as relatively harmless compared with compulsive consumer behavior. Because of the relative lack of harm, it may be easier to argue that neither is morally wrong. 20. Have someone describe to you a recent online shopping experience. Describe how situational factors may have influenced the outcome. Answer: The question gives a student an opportunity to apply many concepts in the class. Time pressure for example probably plays a role. Impulsive motivations may be at play as well as other shopping orientations. *GROUP ACTIVITY Have students pair up to work on this group activity. Have each group describe a woman’s level of involvement with purchasing a designer item (e.g., shoes or outfit); another option is for students to determine a man’s level of involvement with his car. In both cases, the group should determine the different marketing stimuli. For the women, determine how you might design a strategy for consumers who like to purchase items at discounters, such as Marshall’s or DSW ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 Footwear. For the men, determine a strategy that fits the DIY (do-it-yourself) market for those who are very involved in working on their cars. CHAPTER VIDEO CASE To view the video case High Sierra Climbs to New Heights, go to the CB companion website login.cengage.com to select this video.1 Long gone are the days when only hikers carried backpacks into the mountains or stuffed duffels with climbing gear and lashed them to the back of a mule or llama. Today, these bags are the gear of choice for students and savvy travelers of all types. They are lightweight, durable, and can be stowed easily under an airplane seat, on a bus, or in the back of an SUV. High Sierra Sport Company is one of the premier manufacturers of adventure bags—regardless of how you define adventure—and in less than 30 years has become the 10th largest outdoor company in the United States. High Sierra manufactures an impressive array of day packs, backpacks, and duffels. But the firm also makes book bags specifically for students, business and computer cases, bike messenger bags, yoga bags, hydration packs (packs with water reservoirs), lumbar packs, and ski and snowboard packs. Many of these items also come in wheeled models for easy transport. In short, whatever activity you do, High Sierra probably has a pack or bag made specifically for it. The firm even has a “Build-a-Bag” service for customers who can’t find exactly what they want. High Sierra distributes its goods through more than 1,500 retailers—both online and brick-and-mortar stores—including such outlets as MC Sports, Modell’s, Bag ‘n Baggage, eBags, TravelGizmos.com, Kittery Trading Post, and Fogdog Sports. You can’t buy your bag directly from the company, but you can visit the site to view every single bag they make, read about the features, and even get some tips on how to get the perfect fit. In addition to retailers, High Sierra also has corporate accounts, providing bags and packs to companies. And the firm has a strong presence at the Travel Goods Association (TGA) convention, where travel industry experts eagerly examine more than 2,000 new product lines every year. High Sierra is always innovating with its designs and construction techniques. Its executives—including top officer Hank Bernbaum—and employees are travelers who use the products they make, and they constantly look for ideas to create new products and improve existing ones. New colors, lighter and more durable fabrics, additional security features, multiuse bags, and trendy accessories are often on the list of improvements. “Consumers are driving this continuing surge of innovation,” explains TGA president Michele Marini Pittenger. “They want to travel more safely and securely, with greater comfort. And manufacturers and retailers have learned just how fast they can adapt to those changing needs. Rather than a year to get a new product to market, they’re realizing they can do it in months.” High Sierra added to its reputation for quality and cutting-edge design a few years ago, when it became the official supplier of bags to the U.S. Olympic Ski Team and U.S. Olympic Snowboarding Team. The firm manufactures customized backpacks, boot bags, ski and board bags, and duffels for these teams. In addition, High Sierra makes a limited number of these models available for sale to consumers—with the official team logos—including the Loop Pack, the Jackknife Pack, the Mia Messenger Bag, and the Kahuna 70 Hydration Pack. So, a few lucky 1 Boone & Kurtz. High Sierra Climbs to New Heights from Contemporary Business 12e, pg. 622-623. Copyright (c) 2007 by John Wiley & Sons. Reprinted with permission of John Wiley & Sons, Inc. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 skiers and snowboarders can own the same bags the U.S. Olympians carry. All of these models and more are available through the U.S. Ski Team and Snowboarding Team Websites. High Sierra has also won various awards for design and for customer service. High Sierra continues to reach new heights in supplying goods to travelers, students, skiers and boarders, hikers, and everyone else who wants durable, fashionable packs and bags. “You provide the adventure, we provide the gear,” says the company slogan. Whether you’re standing on a mountain summit or a street corner, High Sierra’s got a bag for you. Sources: U.S. Ski Team website, www.ussa.org, accessed August 1, 2006; High Sierra website, www.highsierrasport.com, accessed August 1, 2006; “Great Gifts for Grads,” USA Shopping News, www.usa101.com, accessed July 6, 2006; “High Sierra Sport Company,” Google Finance, www.google.com/finance, accessed July 6, 2006; Gear Trends, www.geartrends.com, accessed July 6, 2006; “Cyber Sidebar/Leader of the Pack,” Hemispheres, www.zipit.gear.com, accessed July 6, 2006; “About High Sierra,” Luggage.com, www.luggage.com, accessed July 6, 2006; “High Sierra Sport Company Wins Microsoft Pinnacle Award,” Sikich Worldwide, April 14, 2006, www.lcsadvantage.com. Ask your students: 1. How would you classify High Sierra’s products? Explain your choice. Answer: High Sierra’s offerings are consumer products, and most students will probably respond that they are in the shopping goods category because consumers would compare High Sierra’s bag features with others before purchasing. Consumers might visit several stores or Websites before purchasing a backpack, book bag, or similar product. 2. Visit High Sierra’s website at www.highsierrasport.com to view the firm’s products. Briefly describe the High Sierra’s overall product mix. Then choose a product line and outline the features that make it unique as well as those that make it fit the mix. Answer: Students will have a variety of responses depending on which product lines they choose, but High Sierra’s product mix generally includes product lines that focus on the needs of travelers, adventure seekers, students, athletes, and others. The mix includes bags, packs, and related accessories, all with design features, hardware, and fabric that give High Sierra a unified look and feel. This exercise should help students make the distinction between a firm’s product mix and its product lines. 3. Describe the factors that contribute to High Sierra’s brand equity. Answer: High Sierra is well known for its design innovations and high-quality materials, and the company has won awards for design and customer service. But perhaps one of the biggest contributors to its brand equity is its association with the U.S. Olympic Ski Team and U.S. Olympic Snowboarding Team. Olympic athletes need the best equipment available to compete in their sports, so High Sierra gains brand equity by being their supplier. These goods display both the High Sierra name and the U.S. Ski or Snowboarding Team logo, and consumers must purchase them through the team Websites, creating a strong association in consumers’ minds between High Sierra and Olympic performance. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23 4. High Sierra sells its products through retailers and through the U.S. Ski and Snowboarding Teams. Do you view this as an effective distribution strategy? Why or why not? Answer: Students are encouraged to use their own judgment in answering the question. High Sierra relies on its relationships with marketing intermediaries because it does not sell directly to consumers. So, the channel is longer than it would be if the firm sold directly to consumers. Consumers buy High Sierra’s goods from retailers both online and in brick-andmortar stores. With online retailing, customers cannot pick up or try on the packs, although they can learn about fit from High Sierra’s website. With brick-and-mortar stores, customers must rely on the knowledge or helpfulness of the salespeople on hand. In the current situation, High Sierra can concentrate on what it does best—creating innovative designs for many types of consumers. However, if High Sierra suddenly began to sell its goods directly to consumers, its relationship with intermediaries might change significantly. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24