Outlet Selection and
Product Purchase
Chapter 6
 The factors that affect retail outlet selection
 Why consumer characteristics can also affect outlet
selection
 The 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 on-line challenge
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
1
Consumer Outlet Selection
and Purchase
 Where will consumers shop?
 How do they choose a retail outlet?
 consumer characteristics
 store characteristics
 In-store decisions alterations
 The purchase process
 Alternative to store selection
 Implications for strategy
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
2
Reilly’s Law
Ba
Bb
=
Pa
Pb
Ba
Bb
P
D
=
=
=
=
% trade from x to A
% trade from x to B
Population
Distance
x
Da
Db
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
3
Dimensions and
Components of Store
Image
s Insert Table 6.2 3/e
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
4
In-store Influences that Impact
on Evaluation of Alternatives and
Purchase
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
5
In-store Buying Habits
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
6
Shopper Behaviour in
Response to Frequent
Stockouts
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
7
Expenditure of Individuals Drawn
to a Store by an Advertised Item
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
8
Outlet Location and
Size — Huff’s Law
Pij
Sj / Tijl
=
n
S
j= 1
Sj / Tijl
Pij = probability that consumers from i go to j
Sj = size of store j (or mall)
Tij = travel time to j
1 = attraction factor for a particular product
category
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
9
Marketing Strategy Based
on the Consumer Decision
Sequence
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
10
Financial and Social Risks
for Various Types of
Products
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
11