Chapter 6 Outlet Selection and Purchase • Factors that affect retail outlet selection • Why consumer characteristics can also affect outlet selection • In-store influences that can affect brand choice • Why marketers need to consider these influences • How the retail environment is changing to respond to the online challenge Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–1 Consumer Outlet Selection and 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 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–2 Outlet Choice vs Product Choice 1. Brand (or item) first, outlet second 2. Outlet first, brand second 3. Brand and outlet simultaneously Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–3 Marketing Strategy Based on the Consumer Decision Sequence 6–4 Use of Advertising to Create Brand Demand and Direct Consumers to Outlets 6–5 The Retail Scene • In stores • Other outlets, non-store outlets – – markets, direct sales, etc. Internet sales Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–6 Internet Retailing 6–7 Reasons for not Purchasing on the Internet 6–8 Characteristics of Online Consumers 6–9 Online Shopping • Increasing number of consumers preferring to shop online • Females now using the Internet • Image of the outlet: – – – – Web page design Convenience Security Pricing Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–10 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 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–11 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 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–12 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 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–13 Expenditure of Individuals Drawn to a Store by an Advertised Item 6–14 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 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–15 Consumer Characteristics and Outlet Choice • Shopping orientation • Perceived risk – – Financial risk Social risk Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–16 Financial and Social Risks for Various Types of Products 6–17 In-Store Influences that Impact on Evaluation of Alternatives, and Purchase 6–18 In-store Influences that Alter Brand Choices • The nature of unplanned purchases – – Reminder purchases or Impulse purchases Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–19 In-Store Buying Habits 6–20 Shopper Purchase Behaviour Insert table 6.8 6–21 Shopper Behaviour in Response to Frequent Stockouts 6–22 Impact of Stockout Situation 6–23 Store Atmosphere and Shopper Behaviour 6–24 Next Lecture… Chapter 7: Postpurchase Processes, Customer Satisfaction and Consumer Loyalty Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–25