CHAPTER SEVENTEEN Outlet Selection and Purchase McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. 2 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: – – – – – CHAPTER 17 major grocery shopping trip buying a quart of milk in a hurry buying a suit buying a watch buying a newspaper 3 CHAPTER 17 Marketing Strategy Based on Decision Sequence 4 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 CHAPTER 17 5 CHAPTER 17 The Internet: Online Sales by Categories 6 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? CHAPTER 17 7 CHAPTER 17 Figure 17-2 8 CHAPTER 17 Table 17-2 9 In-Store Influences that Impact Alternative Evaluation and Purchase Displays Price reductions Store Atmosphere Alternative evaluation Stockouts Sales personnel CHAPTER 17 Modify intended purchase behavior 10 CHAPTER 17 Supermarket Decisions 11 CHAPTER 17 In-Store Purchase Behavior 12 CHAPTER 17 Sales Impact of Point-of-Purchase Displays 13 The Effect of P-O-P Display Location on Sales of Listerine Mouthwash +162% +141% Percent Regular price on shelf Average unit sales per store 120 100 80 60 +11% 40 20 Feature price/display 0 CHAPTER 17 Shelf Rear Endcap Front Endcap 14 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? CHAPTER 17 15 CHAPTER 17 Store Atmosphere 16 CHAPTER 17 Impact of a Stockout Situation