Chapter 6: Outlet selection and
product purchase
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
Outlet selection and product purchase
A further step in the consumer decision making process
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
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
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
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
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
Outlet choice vs product choice
• Brand (or item) first, retail outlet second
• Retail outlet first, brand second
• Brand and retail outlet simultaneously
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
Marketing strategy based on the
consumer decision sequence
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
Retailers use quality brands to promote
the store
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
Use of advertising to create brand demand
and direct consumers to outlets
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
The retail scene
• In retail stores
• Other outlets, non-store outlets
–
–
Internet sales
Markets, direct sales, etc.
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
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
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 by age groups
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
Reasons for not purchasing on the
internet
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
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
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
Dimensions and components of store
image
Dimension
Component(s)
 Merchandise
 Quality, selection, price, style
 Service
 Sales assist., return, credit
 Clientele
 Customers
 Physical features
 Clean, layout, etc.
 Convenience
 Location, parking
 Promotion
 Advertising
 Store atmosphere
 Fun, excitement, comfort
 Institutional
 Store reputation
 Post-transaction
 Satisfaction
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
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
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
Expenditure of individuals drawn
to a store by an advertised item
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
Outlet location and size:
retail attraction model
MSi =
Si / Til
n
S Si / Til
i= 1
MSi = market share of store i
Si = size of store i (or mall)
Ti = travel time to i
l = attraction factor for a particular product
category
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
Consumer characteristics and outlet
choice
• Shopping orientation
• Perceived risk
–
–
Financial risk
Social risk
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
Financial and social risks for
various types of products
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
Reducing health risk via
endorsement
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
In-store influences that impact on
evaluation of alternatives and purchase
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 alter brand
choices
• The nature of unplanned purchases
–
Reminder purchases
–
Impulse purchases
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 (cont.)
•
The nature of unplanned purchases
–
The specifically planned decision
– The generally planned decision
– The substitute decision
– The unplanned decision
– The in-store decisions
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
Encouraging unplanned purchases ‘gift-time’ and suggesting products
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
In-store buying habits
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
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.
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
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
Shopper behaviour in response
to frequent stockouts
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
Impact of stockout situation
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
Store atmosphere and shopper behaviour
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
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
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
Next lecture
Chapter 7:
Postpurchase processes,
customer satisfaction and
consumer loyalty
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