Ch 11 Notes Flashcards
11-1 Value In Situations
Situational influences: contextual effects that have an impact on the value a consumer obtains from a purchase or consumption and are independent of enduring consumer, brand, or product characteristics.
Contexts can affect communication, shopping, brand preference, purchase, actual consumption, and the evaluation of that consumption
Situations and Values
11-1 Value In Situations
Situational influences can be categorized on the value extracted from the customer journey into three categories:
- Time
- Place
- Conditions
Situational Influences Can Exist in Any of These Forms
As a consumer has less discretionary time, the value of many household maintenance services increases
Time
Situational Influences Can Exist in Any of These Forms
Consumer’s economic condition will change the value of lunch in a restaurant
Conditions
Situational Influences Can Exist in Any of These Forms
An environment can make a consumer feel at ease and relaxed, meaning they will linger longer in that space
Place
11-2 Time and Consumer Behavior
Time-related factors affect a consumer’s thoughts, feelings, and behavior, all of which come together to create differing perceptions of value
Can affect consumption in any of these forms:
-Time pressure
-Time of year
-Time of day
Temporal Factors
Time
11-2 Time and Consumer Behavior
Affects consumers in several ways:
Consumers process less information because time is a critical resource necessary for problem solving.
Consumers are more likely to rely on simple choice heuristics.
It can switch a consumer’s orientation from hedonic to utilitarian.
Consumers are more likely to make poor judgments about prices
Time Pressure
11-2 Time and Consumer Behavior
Biggest constraint on most consumers’ time is their job
When consumers feel like they lack spare time, personalized services that make routine activities convenient increase hedonic value, as the feelings of relief bring about instant gratification.
Service providers need to be able to detect whether consumers are time starved or have extra time
Spare Time
11-2 Time and Consumer Behavior
Seasonality
Consumers tend to shop earlier in the day during winter months, and, overall, they tend to spend more during the summer months
Almost all products are susceptible to some type of seasonal influence.
Effectiveness of social media marketing depends strongly on seasonality and timing the market push when demand for the product is highest.
Time of Year
11-2 Time and Consumer Behavior
Whether it’s beverage consumption, attire, or choice of entertainment, the time of day affects the value of products and activities
**Circardian Rythm
-Responsible for productivity in many activities
Consumers would prefer to sleep between the hours of midnight and 6 a.m. and from about 1 to 3 p.m.
Cycles
11-2 Time and Consumer Behavior
Advertiming
-Advertiming
-Growth Hacking
-Near field communication (NFC)
11-3 Place Shapes Shopping Activities
Not every shopping act culminates in a purchase
Consumers shop using their computers, tablets, phones, vending machines, or other non-store alternatives, including physical flyers and catalogs sent by snail mail.
When very involved in the purchase, consumers may be shopping simply from the things they hold in memory
Place Shapes Shopping Activities
11-3 Place Shapes Shopping Activities
What is shopping?
Represents the inverse of marketing.
Shopping constitutes the largest part of the consumer journey.
11-3 Place Shapes Shopping Activities
**Many effects seen in real brick-and-mortar shopping environments exist in the virtual shopping world too.
-Color and sounds work in much the same way.
-Images play a key role in shaping the virtual shopping experience
-Smart Agent Software
Virtual Shopping Situations
11-3 Place Shapes Shopping Activities
Shopping Activities
-Acquisitional shopping
-Epistemic shopping
-Experiential shopping
-Impulsive shopping
Types of Shopping Activities
Ex: Buying printer cartridges
Utilitarian Shopping Value: 3 stars
Hedonic Shopping Value: 0 stars
A chore depending on high utilitarian value to create satisfaction.
Acquisitional shopping
Types of Shopping Activities
Ex: Studying vacation destinations
Utilitarian Shopping Value: 2 stars
Hedonic Shopping Value: 2 stars
Motivates the shopper to increase knowledge.
Either situational involvement or enduring involvement.
Could produce utilitarian value and/or hedonic value.
Epistemic Shopping
Types of Shopping Activities
Ex: Shopping with friends
Utilitarian Shopping Value: 0 stars
Hedonic Shopping Value: 3 stars
Include things done just for the experience.
**Outshopping
-Often motivated simply by the desire for the experience
-Provides value by allowing consumers to experience new or unique things
**Online Outshopping
Experiential Shopping
Types of Shopping Activities
Ex: Buying 4 pairs of shoes
Utilitarian Shopping Value: 1 star
Hedonic Shopping Value: 2 stars
Illustrate how a single shopping experience can result in more than one type of activity.
Reversal Theory
Impulsive Shopping
11-3 Place Shapes Shopping Activities
All shopping activities are aimed at one key result—value.
**Personal Shopping Value (PSV)
- Utilitarian Shopping Value
- Hedonic Shopping Value
Shopping Value
11-3 Place Shapes Shopping Activities
Consumers window-shop to find information so that an upcoming shopping trip might be more successful (epistemic shopping).
May also window-shop as a way of passing time in a gratifying way (experiential shopping).
Situational influences may affect the type of shopping value
Time pressure may lead consumers to be more concerned with simple product acquisition than they might otherwise be.
Consumers who are in a bad mood may choose to change it by going shopping.
Value and Shopping Activities
11-3 Place Shapes Shopping Activities
-Functional quality
-Affective Quality
**Come together and create retail personality
Retail Personality
11-4 Impulsive Shopping and Consumption
Impulsive behavior can be broken down as follows:
- The act involves willingly deviating from previous plans and thus shows spontaneity and, undoubtedly, feelings of liberation from the negative events of the day.
- The act shows diminished regard for consequences either for missing the business lunch or for any expense incurred.
- The act fulfills the need to maintain a positive outlook on the self and thus provides hedonic value
11-4 Impulsive Shopping and Consumption
Situational memory characterizes unplanned acts because something in the environment usually triggers the knowledge in memory that something is needed.
Utilitarian motivations drive many unplanned purchases.
Unplanned acts are done without any significant deliberation or prior decision making.
Impulsive versus Unplanned Behavior
11-4 Impulsive Shopping and Consumption
Some unplanned acts are impulsive, and many impulsive acts are unplanned.
Simple unplanned purchases usually lack any real emotional involvement or significant amounts of self-gratification.
Unplanned purchases often involve only minimal, if any, negative consequences.
Distinguishing Impulsive and Unplanned Consumer Behavior
11-4 Impulsive Shopping and Consumption
Not all consumers are equally susceptible; individual difference characteristics can play a role
Impulsivity
Online retailers can facilitate the impulse buying process by making the transaction a simple one-step process.
Susceptability to Situational Effects
11-4 Impulsive Shopping and Consumption
-Action Oriented
-State Oriented
Consumers with a high ability to self-regulate their behavior (action-oriented consumers) generally form rules that they stick by to limit the extent to which situational influences determine their behavior.
Consumer Self Regulation
Questions Distinguishing Low from High Self-Regulatory Capacity
If I had to work at home…
Action Oriented: I would get started right away
State Oriented: I would often have problems getting started
Questions Distinguishing Low from High Self-Regulatory Capacity
When I have important things to buy…
Action Oriented: I make a shopping plan and stick to it
State Oriented: I don’t know how to get started
Questions Distinguishing Low from High Self-Regulatory Capacity
When I have an important assignment to finish in the afternoon…
Action Oriented: I can easily concentrate on the assignment
State Oriented: It often happens that things will distract me
Questions Distinguishing Low from High Self-Regulatory Capacity
When it is absolutely necessary to do some unpleasant task…
Action Oriented: I finish it as soon as possible
State Oriented: It takes a while before I can start on it
Retail Approaches Aimed at Encouraging Impulse Purchases
- Merchandise Complementary Products Together
- Encourage “add-on” purchases
- Create an emotionally charged atmosphere
- Make things easy to buy
- Provide a discount
Tools
Retail Approaches Aimed at Encouraging Impulse Purchases
Peruse social networking entries on the internet for consumers talking about recent purchases and generate push advertising aimed at complementary products
Merchandise Complementary Products Together
Retail Approaches Aimed at Encouraging Impulse Purchases
Asking consumers to buy socks after they have agreed to buy shoes seems like a small request. Turning the request down would risk creating negative feelings. Smart agents generate suggested add ons of the type, “other consumers who purchased x also purchased y”
Encourage “add-on” purchases
Retail Approaches Aimed at Encouraging Impulse Purchases
Creating an upbeat, exciting dining atmosphere encourages customers to linger and order something extra
Create an emotionally charged atmosphere
Retail Approaches Aimed at Encouraging Impulse Purchases
Strong credit card information using an instant pay app, which makes transactions easy and quick, reduces time for consumers to have second thoughts
Make things easy to buy
Retail Approaches Aimed at Encouraging Impulse Purchases
Offering an instant discount at checkout diminishes the perceived consequences associated with a purchase
Provide a Discount
11-4 Impulsive Shopping and Consumption
Three characteristics distinguish compulsive consumer behavior from impulsive consumer behavior.
- Compulsive CB is harmful.
- Compulsive CB seems to be uncontrollable.
- Compulsive CB is driven by chronic depression.
Impulsive vs Compulsive Behavior
11-5 Places Have Atmospheres
All consumption takes place in some physical space.
**Atmospherics
**Servicescape
-E-scape refers to a virtual shopping environment as portrayed by a website.
-Festivalscape refers to the array of environmental characteristics a consumer encounters when attending a festival.
Retail and Service Atmospheres
11-5 Places Have Atmospheres
Describes the meaning created by the total result of attributes that facilitate and make efficient the function performed there.
**Shopping Environment
**Service Environment
Functional Quality
11-5 Places Have Atmospheres
The number and helpfulness of employees
Ease of parking and movement through the environment
The breadth and depth of merchandise
Shopping Environment
11-5 Places Have Atmospheres
The amount and expertise of service employees
The convenience of the environment
The capability of the support staff
Service Environment
11-5 Places Have Atmospheres
Represents the emotional meaning of an environment, which results from the sum effect of all ambient attributes that affect the way one feels in that place.
Female consumers appear much more demanding based on how they react to a place with a negative affective quality.
An environment with a favorable functional quality tends to be associated with some degree of positive affect.
Affective Quality
11-5 Places Have Atmospheres
Determined by the consumer’s perception of all the elements working together in a given environment.
2 Factors:
-Fit
-Congruity
Atmosphere Elements
11-5 Places Have Atmospheres
Prominent environmental elements that affect both a consumer’s cognitive processing and affective reaction
Olfactory
Citrus odors produce positive responses in practically all consumers.
Consumers express a higher maximum acceptable price in the presence of pleasant odors
Odors
11-5 Places Have Atmospheres
-Foreground
-Background
Background music can affect the bottom line
Music
11-5 Places Have Atmospheres
Blue is perhaps the most universally liked color.
Color helps frame the shopping experience
Color
11-5 Places Have Atmospheres
Lighting can have dramatic effects on the environment and even reverse the effect of color.
Warm colors accented with soft, colored lights lead consumers to a more favorable image of retailers
Lighting
11-5 Places Have Atmospheres
**Provide customers with the best opportunity to purchase something.
-This is done by the placement of goods and store fixtures, along with the use of signage.
Signs change consumers’ perceptions.
Poor merchandising can increase the sense of crowding in a store environment.
Merchandising
11-5 Places Have Atmospheres
Crowding
Shopping density can exert relatively strong influences on consumer behavior.
Exerts a nonlinear effect on consumers.
**Crowding can be caused by stuff and not just customers.
-Web pages that crowd too many things into a given space can create the perception of a dense and crowded environment
Social Settings
Crowding Can Be Too High or Too Low
**Shopping Value: None
Low Hedonic Value: Boring
**Shopping Value: Some
High Hedonic Value: Exciting
**Shopping Value: Extreme
Low Hedonic Value: Frustrating
Crowding
11-5 Places Have Atmospheres
Salespeople, service providers, and brand agents are an important source of consumer information and influence
-Source Attractiveness
-Emotional Availability
-Social Comparison
Shopping companions can affect hedonic and utilitarian value.
11-6 Antecedent Conditions
Events occurring prior to this particular point in time have created a situation.
Include things like economic resources, orientation, mood, and other emotional perceptions such as fear.
They can shape the value in a situation by framing the events that take place
Antecedent Conditions
11-6 Antecedent Conditions
The economic resources a consumer brings to a particular purchase setting refer to the consumer’s buying power.
The method of payment represents a situational influence on consumers.
Cash payments have a way of emphasizing the sacrifice required for a purchase.
If consumers are near their credit limits, their shopping behavior changes.
Buying Power
11-6 Antecedent Conditions
Sometimes, a third party provides the financial backing for a purchase.
-Another consumer, like a parent or guardian
-An institution, like an insurance company or charity
-Employer or even the government (such as when traveling for)
When consumers are in essence spending somebody else’s money, they tend to be less price sensitive.
Third Party Payments
11-6 Antecedent Conditions
Instant credit enables consumers to avoid delaying gratification.
The easier it is to use a credit card, the more consumers spend.
-Mental budgeting
Consumer Budgeting
11-6 Antecedent Conditions
Most consumers prefer the gift card despite the lower economic value.
Open-loop gift cards can be redeemed at any number of merchants accepting the form of payment.
Closed-loop gift cards can be redeemed only at a single merchant
Gift (Prepaid) Cards
11-6 Antecedent Conditions
Gift shopping can dramatically shift a shopper’s orientation and change the shopping experience altogether.
Employees who sense the orientation and can adjust their approach will create higher value for the consumer
Orientation
11-6 Antecedent Conditions
-Consumers in particularly bad moods may have a tendency to binge-consume.
-Consumers in good moods find more hedonic shopping value but can be more prone to buy as well.
Mood
11-6 Antecedent Conditions
Large parking lots attract criminals who prey on seemingly defenseless consumers.
Places where consumers frequently gather are all too often the site of terrorist attacks.
**Fearfulness can affect consumers in multiple ways:
-A fearful consumer will tend to buy less and enjoy the experience less.
-A fearful consumer may cope by turning to alternatives to brick-and-mortar stores, such as the Internet.
Security and Fearfulness
Enhancing Value by Making Consumers Feel Safer
Ways to make consumers feel safer:
- Increase number and visibility of security personnel
- Create contactless curbside pickup
- Increase number and prominence of security cameras in parking lots
- Have brightly lit parking lots
- Add carry-out services for consumers –particularly for those shopping along
- Maintain an uncrowded, open entrance
- Clearly Mark all exits
- Prevent Loitering
- Discourage gangs from visiting the center
