10-1 Chapter 10 Buying and Disposing 10-2 Introduction • Making a purchase is often not a simple, routine matter of going to the store and quickly picking out something. • Situational Effects on Consumer Behavior – Consumption Situation – Situational Self Image Issues Related to Purchase and Post Purchase Activities ANTECEDENT STATES •Situational Factors •Usage Context •Time Pressure •Mood •Shopping Orientation PURCHASE ENVIRONMENT • The Shopping Experience •Point of Purchase Stimuli •Sales Interactions 10-3 POSTPURCHASE PROCESSES •Consumer Satisfaction •Product Disposal •Alternative Markets 10-4 Social and Physical Surroundings • Temporal Factors – Economic Time » Timestyle » Time poverty • Polychronic Activity or Multi-Tasking – Psychological Time » Queuing Theory – Antecedent States: If It Feels Good, Buy It » Pleasure and Arousal (see next slide) 10-5 Dimensions of Emotional States 10-6 Shopping Experience: A Job or An Adventure? Thrill of the Chase Instant Status Social Experiences Understanding Shopping Motives Interpersonal Attraction Sharing Common Interests Shopping Experience: A Job or An Adventure? Shopping Orientation Economic Shopper Rational, Goal-Oriented, Maximize Value of Their Dollar Personalized Shopper Forms Strong Attachments to Store Personnel Ethical Shopper Supports Locally Owned Stores Rather Than Big Chains Apathetic Shopper Doesn’t Like to Shop, a Necessary But Unpleasant Chore Recreational Shopper Views Shopping as a Fun, Social Activity 10-7 Shopping Experience: A Job or An Adventure? • E-Commerce: Clicks Versus Bricks • Retailing as Theater – Malls are becoming giant entertainment centers appealing to consumer’s social motives as well as providing access to desired goods. Themed environments for shopping and eating. » Store Image • Location. • Merchandise suitability. • Knowledge and congeniality of sales staff. » Atmospherics • The conscious designing of space and its various dimensions, such as colors, scents, and sounds, to evoke certain effects in buyers. 10-8 The Purchase Environment • In-Store Decision Making – Many purchases are influenced by the store environment and contribute to: » Spontaneous/Unplanned Buying - result from time pressures or reminders. » Impulse Buying - sudden urge to purchase. – Point-of-Purchase stimuli (POP) is increasingly popular and sophisticated and includes: » In-Store Displays that dispense products and/or coupons. • Salesperson – An important factor who attempts to influence the buying behavior of the customer through: » Resource Exchange, “What do I get from the salesperson?” » Sales Interaction through Identity Negotiation. 10-9 Postpurchase Satisfaction 10-10 Consumer Satisfaction/ Dissatisfaction (CS/D) is Determined by the Overall Feelings, or Attitude, a Person Has About a Product After It Has Been Purchased. It is Influenced By: Perceptions of Product Quality Price Follow-up Letters & Calls Brand Name Warranties Advertising Quality is What We Expect It To Be 10-11 • Expectancy Disconfirmation Model – Consumers form beliefs about product performance based on prior experience with the product and/or communications about the product that imply a certain level of quality. – If performance exceeds expectations, consumers are satisfied and pleased. – If performance falls below expectations, consumers are dissatisfied. • This illustrates the importance of Managing Expectations - customer dissatisfaction is usually due to expectations exceeding the company’s ability to deliver. 10-12 Expectation Zones 10-13 Acting on Dissatisfaction Marketers Should Encourage Customers to Complain Since People Are Likely to Spread the Word About Unresolved Negative Experiences. If a Person is Not Happy With a Product or Service, What Can They Do? Acting on Dissatisfaction Voice Response Private Response Third-Party Response Consumers’ Disposal Options 10-14 PRODUCT Get Rid of Item Permanently Keep Item Use It to Serve Original Purpose Throw It Away To Be (Re)sold Convert It to Serve a New Purpose Give It Away To Be Used Store It Get Rid of Item Temporally Rent It Trade It Directly to Consumer Loan It Sell It Through Middleman To Middleman 10-15 Product Disposal • Lateral Cycling: Junk or “Junque”