Chapter 10: Buying and Disposing Flashcards
Issues related to Purchase and Post-purchase activities
1) Antecedent States
2) Purchase Environment
3) Post-Purchase Processes
Antecedent States (Before the purchase)
Situational Factors Usage contexts Time pressure Mood Shopping Orientation
Purchase Environment
The shopping experience
Point of purchase stimuli
Sales Interactions
Post-Purchase Processes (after the purchase)
Consumer Satisfaction
Product Disposal
Alternative Markets
Relationship marketing
The process of creating, maintaining, and enhancing strong value-laden relationships with customers
A consumption situation
Defined by contextual factors over and above characteristics of the person and the product
Situational effects can be behavioural (e.g., entertaining friends) or perceptual (e.g., being depressed or feeling pressed for time)
Situational self-image
Another reason to take environmental circumstances seriously is that the role a person plays at any time is partly determined by his or her situational self-image
According to which he or she basically answers the question “Who am I right now?
Example: Someone trying to impress his date by playing the role of “gentleman” may spend more lavishly, ordering champagne instead of beer and buying flowers
Co-consumers
Other patrons in a consumer setting
Density
refers to the actual number of people occupying a space
Crowding
the psychological state of crowding exists only if a negative affective state occurs as a result of this
density
Example: For example, 100 students packed into a classroom designed for 75 might be unpleasant for all concerned, but the same number jammed together at a party occupying a room of the same size just might make for a great party
Interestingly, some research has shown that perceptions of crowding in a retail context cause more variety seeking among consumers.
For example, consumers in narrower aisles seek out a greater variety of products than do those in wider aisles
Economic Time
Time is an economic variable; it is a resource that must be divided among activities.
Time Poverty
The feeling that one is more pressed for time than ever before
People may just have more options for spending their time and feel pressured by the weight of all these choices
More so based on perception than to fact
Polychronic activity
wherein consumers do more than one thing at a time
Psychological Time / Temporal Factors
1) Flow Time
2) Occasion Time
3) Deadline Time
4) Leisure Time
5) Time to Kill
1) Flow Time
in a flow state we become so absorbed in an activity that we notice nothing else. This is not a good time to be hitting people with ads. While it’s great when enjoying a movie, in some contexts, like gambling, it can be problematic and lead to more money or time being spent while in flow
2) Occasion Time
This includes special moments when something monumental occurs, such as a birth or an important job interview.
Ads clearly relevant to the situation will be given our undivided attention.
3) Deadline Time
Any time when we’re working against the clock is the worst time to try to catch our attention.
4) Leisure Time
During downtime, we are more likely to notice ads and perhaps try new things
5) Time to Kill
This is when we’re waiting for something to happen, such as catching a plane or sitting in a waiting room. This is bonus time, where we feel we have the luxury to focus on extraneous things.
As a result, we’re more receptive to commercial messages, even for products we don’t normally use.
The researchers identified four dimensions of time:
(1) the social dimension
(2) the temporal orientation dimension
(3) the planning orientation dimension
(4) the polychronic orientation dimension
(1) the social dimension
which refers to individuals’ categorization of time as either “time for me” or “time with/for others”
(2) the temporal orientation dimension
which depicts the relative significance individuals attach to past, present, or future;
(3) the planning orientation dimension
which alludes to different time-management styles varying on a continuum from analytic to spontaneous
(4) the polychronic orientation dimension
which distinguishes between people who prefer to do one thing at a time from those who have multi-tasking timestyles
TIME IS A PRESSURE COOKER
Women who personify this metaphor are usually analytic in their planning, other-oriented, and monochronic in their timestyles. They treat shopping in a methodical manner and often feel under pressure and in conflict.
TIME IS A MAP
Women who exemplify this metaphor are usually analytic planners and have a future temporal orientation and a polychronic timestyle. They often engage in extensive information search and comparison shopping.
Linear separable time
events proceed in an orderly sequence and different times are well defined, as exemplified by the phrase, “There’s a time and a place for everything.”
Queuing theory
the mathematical study of waiting lines
–Waiting for product = good quality
–Too much waiting = negative feelings
–Marketers use “tricks” to minimize psychological waiting time
Waiting in line
Recent research shows that consumers tend to buy more if they have to wait longer in line. Apparently, they reason that a bigger purchase compensates for the extra time they had to spend waiting
A person’s ______ or _______condition at the time of purchase can have a big impact on what is bought and can also affect how products are evaluated
mood or physiological
Two dimensions determine whether a shopper will react positively or negatively to a store environment
1) Pleasure
2) Arousal
Dimensions of Emotional States
Arousing Exiting Pleasant Relaxing Sleepy Gloomy Unpleasant Distressing Arousing (pretend it is a circle)
Moods can be affected by
store design, the weather, website structure, or other factors specific to the consumer
In addition, music and TV programming can affect mood, which has important consequences for commercials
Positive Moods
When consumers hear happy music or watch happy programs, they have more positive reactions to commercials and products, especially when the marketing appeals are aimed at arousing emotional reactions.
consumers process ads with less elaboration
They pay less attention to specifics of the messages and rely more on heuristic processing
Hedonic shopping motives can include the following:
Social Experiences Sharing of Common Interests Interpersonal attraction Status The Thrill of the Hunt Group Pressure
shopping orientation
Consumer’s general attitudes about shopping
Several shopping types have been identified:
Economic Consumer Personalized Consumer Ethical Consumer Apathetic Consumer Reactional Shopper
Social shopping
an emerging form of e-commerce that allows an online shopper to simulate the experience of shopping with others in a bricks-and-mortar store
More generally, online shoppers value these aspects of a website:
AKA some pros of ecommerce
The ability to click on an item to create a pop-up window with more details about the product, including price, size, colours, and inventory availability
The ability to click on an item and add it to your cart without leaving the page you’re on
The ability to merchandise more tangibly through better imagery, more product descriptions, and details
The ability to enter all data related to your purchase on one page rather than going through several checkout pages
The ability to mix and match product images on one page to determine whether they look good together
Benefits: Good customer service, technology value allows for short runs of products, other services
Negatives to ecommerce
Security!
-Such as credit cards and other identity identification get stolen
Shopping Experience!
-buying clothing and other items where touching the item or trying it on is essential might be less attractive
Limitations: Security/identity theft concerns, actual shopping experience, large delivery/return shipping charges
Retail theming
Strategy involving the creation of imaginative store environments that transport shoppers to fantasy worlds or provide other kinds of stimulation
Type of theming
1) Landscape themes
2) Marketspace themes
3) Cyberspace themes
4) Mindscape themes
Store image
Store’s personality composed of such attributes as location, merchandise sustainability, and the knowledge and congeniality of the sales staff
Atmospherics
The use of space and physical features in a store design to evoke certain effects in buyers
Unplanned buying
may occur when a person unfamiliar with a store’s layout is under time pressure, or a person may be reminded to buy something by seeing it on a store shelf.
impulse buying
occurs when the person experiences a sudden urge that he or she cannot resist.
The tendency to buy spontaneously is most likely to result in a purchase when the consumer believes that acting on impulse is appropriate, such as when purchasing a gift for a sick friend or picking up the tab for a meal
Exchange theory
which stresses that every interaction involves an exchange of value; each participant gives something to the other and hopes to receive something in return
–Expertise, likeability
–Commercial friendship
–Incidental similarity
Consumer satisfaction/dissatisfaction (CS/D)
Postpurchase satisfaction
is determined by the overall feelings, or attitude, a person has about a product after it has been purchased
Marketers constantly on lookout for sources of consumer dissatisfaction
Expectancy disconfirmation model
consumers form beliefs about product performance based on prior experience with the product and/or on communications about the product that imply a certain level of quality
•Marketers should manage expectations
–Don’t promise what you can’t deliver
–Expectations determine satisfaction and/or dissatisfaction
–Underpromising strategies often work well
If a person is not happy with a product or service, what can be done?
1) Voice response: Appeal to retailer directly
2) Private Response: Express dissatisfaction to friends or boycott store
3) Third-Party Response: Legal Action
total quality management (TQM)
a complex set of management and engineering procedures aimed at reducing errors and increasing quality
Gemba
means the one true source of information
Japanese term
Sharing economy aka Collaborative consumption
Consumption that involves the purchase, use, or sharing of goods and services by two or more consumers
When a consumer decides that a product is no longer of use, several choices are available.
(1) keep the item,
(2) temporarily dispose of it, or
(3) permanently dispose of it
Lateral Cycling
Process where already-purchased objects are sold to others or exchanged for other items
The reuse of other people’s things is so important in our throwaway society because, as one researcher put it, “there is no longer an ‘away’ to throw things to.”
Flea markets, garage sales, Craigslist, bartering for services, hand-me-downs, and the black market all represent important alternative marketing systems that operate in addition to the formal marketplace
•Internet has revolutionized lateral cycling
Divestment rituals
The act of ‘freeing up’ objects as they are passed from one owner to another
ICONIC TRANSFER RITUAL
taking pictures and videos of objects before selling them
TRANSITION-PLACE RITUAL
putting items in an out-of-the way location, such as a garage or an attic, before disposing of them
RITUAL CLEANSING
washing, ironing, and/or meticulously wrapping the item
Shopping: Job or Adventure?
Social motives for shopping are important
–Shopping for utilitarian or hedonic reasons
–Women “shop to love,” while men “shop to win”
Hedonic reasons to shop include:
–Social experiences –Sharing of common interests –Interpersonal attraction –Instant status –The thrill of the hunt –Group pressure
Several shopping types:
–Economic consumer –Personalized consumer –Ethical consumer –Apathetic consumer –Recreational shopper
Point-of-purchase POP
Can be an elaborate product display or demonstration, a coupon-dispensing machine, or even someone giving out free samples
–Pepsi changes pop can design
–Coors Light sport labels
–Huggies’s Henry the Hippo hand soap bottles
The Real Value of Happy Customers
- A loyal buyer with a low referral rate averaged $49, a buyer with a high referral rate brought in $670.
- 78% of customers are willing pay more for products if they experience great customer service
- Good service travels fast via social networking
The Evolution of Product Ownership
•Provides the benefits of the product when needed, but to not have to worry about:
–Initial capital cost
–Maintaining and storing the product
–Disposal issues
Bit Coin Video
BitCoin Video
What problem did Bitcoin want to fix from traditional currency?
Trust!
It wanted to fix the trust aspect by removing the financial banks aspect of the process
What is the fundamental difference between bitcoin and regular money
It is decentralized
What got bitcoin accelerated
Institutionalized endorsements such as Tesla
