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WEEK 4: Outlet selection and product purchase - Coggle Diagram
WEEK 4: Outlet selection and product purchase
Objectives
Attributes affecting retail outlet selection
Consumer characteristics and outlet choice
The retail scene
In-store influences that impact on evaluation of alternatives and purchase
Outlet choice vs. product choice
Purchase
Marketing strategy based on the consumer decision sequence
Brand first? What should the brands do?
Store first? What should the stores do?
Brand and store simultaneously? What should the stores and the brands do?
Attributes and Criteria affecting retail outlet selection
Criteria affecting retail outlet selection
Store brands
Retail advertising
Store image
Outlet location and size
Retail format
Criteria used for store evaluation and selection
Assortment
Price
Location
Advertising
Promotion
Sales personnel
Service
Customers
Store atmosphere
Post purchase services
Satisfaction
Attributes affecting retail outlet selection
Low-involvement buying:
Convenience stores, supermarkets, discount stores, vending machines, mail order, telephone order
High-involvement buying:
Department stores, specialty stores
Criteria for outlet selection
Store image
Creates Store Atmosphere
Creates feelings
Consumer may stay longer
Creates consumer experience
Consumer remembers
Store image dimensions
Merchandise:
Quality, selection, price, style
Service:
Sales assistance, return, credit policies
Clientele:
Customers
Physical features:
Clean, layout, colour etc
Convenience:
Location, parking
Promotion:
Advertising
Store atmosphere:
Fun, excitement, comfort etc
Institutional:
Store reputation
Post-transaction:
Customer satisfaction
Consumer shopping orientation
Reason for shopping or a preferred shopping style
Consumers’ shopping motivation helps identify their shopping orientation
Influences their choice of retail format
Retail strategies must accommodate core customers
Why do you shop?
Consumer shopping orientation and perceived risk
Shopping orientation:
Shopping style
Love shopping, hate shopping, shop online, look for discounts, don’t have time etc.
Perceived risk
Financial risk:
Consumer’s perceived risk to financial status as a result of purchase
Social risk:
Consumer’s perceived risk to personal image as a result of purchase
Types of perceived risk
Financial and social risks for various types of products
What is your shopping motivation?
Sensory stimulation
Social interaction
Leisure
Learning about new trends
Diversion
To exert interpersonal power over sales staff
To buy
In-store factors affecting evaluation of alternatives and purchase
POP and digital displays inform consumers or encourage them to buy.
Attract attention
Inform
Stimulate purchase
Increase sales
Add atmosphere
How does your brand perform in-store?
Partially planned purchase
Plan to buy in product category but will select brand in store, or on website
In-store marketing tactics may influence choice
Unplanned purchase
Product category and brand choice made in store
In store marketing tactics have strong impact
Fully planned purchase
Brand has been selected. High involvement, repeat or brand loyal purchases
Consumer may be interrupted by in-store marketing tactics
With point of purchase (POP) materials, sales promotions may increase because:
Current customers buy ahead
Users of competing brands may switch
Non-users may buy as a substitute
Consumers who do not normally shop at the store may come to the store to buy brands on promotion
POP devices at the point of sale to encourage consumers to buy.
posters
cards
shelf wobblers
etc
Outlet selection: Consumer shopping experience and store layout
Enter store
Move through store
Arrive at store
Check out
Prepare to shop
Going home
Consumer logistics:
Impact of crowding in store
Note: There are cultural differences
In-store factors affecting evaluation of alternatives and purchase: Stock-outs
Purchase behaviour
Delaying the purchase until the brand is available at the original store.
Forgoing the purchase entirely.
Purchasing a substitute brand or product at the original store. The substitute brand/product may or may not replace the regular brand in future purchases.
Purchasing the desired brand at a second store. Either of the items initially desired or the stockout items only may be purchased at the second store. The second store may or may not replace the original store on future shopping trips.
Verbal behaviour
The consumer may make positive comments to peers about the substitute store.
The consumer may make positive comments to peers about the substitute brand/product.
The consumer may make negative comments to peers about the original store.
Store is temporarily out of a particular
brand so consumers may decide
To buy same brand at another store
To switch brands
Delay purchase
Not buy at all
Attitude shifts
The consumer may develop a more favorable attitude towards the substitute store.
The consumer may develop a more favorable attitude towards the substitute brand/product
The consumer may develop a less favorable attitude towards the original store.
Outlet selection criteria: Sales Personnel
Can have great effect on purchases, especially high-involvement purchases
b. Nature of the customer’s buying task
c. Customer-salesperson relationship
a. Salesperson’s knowledge, skill and authority
Purchase
Payment methods – cash, credit cards (Visa, Mastercard, American Express), bank cards (Vietcombank Connect, DongA, ANZ card)…
Complete transaction – Facilitate purchasing?
