Chapter 3 - Shopper Behavior Flashcards
Consumer motives for shopping - personal motives and social motives
Personal motives:
Relaxing
Role playing
Seeking variety
Seeking sensory stimulation form the retail environment
Social motives:
Social interaction away from home
Fulfilling status needs
Being with peer groups
Different types of shopper
Multichannel enthusiast
Positive attitudes towards multiple channels for searching and buying
Highly innovative people
Enjoy shopping
Show LOW loyalty
Different types of shopper
Uninvolved shopper
Not positive toward any channel of shopping
Do not enjoy shopping
Show LOW loyalty
Low price consciousness
Different types of shopper
Store focused shoppers
Favour brick and mortar stores
Negative attitudes towards any other channel except stores
They are loyal shoppers
Show little innovativeness
Different online shopper types
Credibility first purchasers - strong preference for high reputation stores
Risk averse purchasers - take a long time to decide to buy a high price item by comparing info on items in different stores
Economical purchasers - favour purchasing low price items and take a long time to decide to buy an item, they do not like to communicate with others
Active star purchasers- fond of communicating with others of their shopping experience, lots of word to mouth interaction make them most influential group
Direct purchasers - similar to economical shopper but are task orientated and do not take long to make a buying decision
High loyalty purchasers - clear preferences and add items to favourite lists, share their online experience word to mouth and they are very informed with the products and services - making them loyal customers
Retail outlet customer base consists of
Core customers: use the outlet because it is their first choice, small percentage of outlets shopper but represent most of its sales.
Secondary shoppers: use the outlet to compare price and merchandise, not necessarily the first choice outlet
Tertiary shoppers: browse the outlet occasionally but seldom make a purchase
Four product classes
Convenient products
Convenience products
- inexpensive and purchased regularly
- little to no comparison shopping is done
- minimum time and effort spent on buying these
3 groups
Staples - bread
Impulse goods - magazines or sweets @ checkout
Emergency goods - suntan lotion
Four Product classes
Shopping Products
- Cause consumers to engage in comparison process before buying
- these cost more and bought less frequently than convenience goods
Examples - clothes, furniture
Four product classes
Speciality products
These have unique characteristics for which the consumer will not accept substitutes.
- these consumers are well informed and make special efforts to acquire the products they want
Examples - photographic and electronic equipment and designer clothes
Four product classes
Unsought products
These are products that are either known or not known by the consumer and which they usually don’t consider buying .
Examples
New products of which the consumer was not previously aware and products like insurance which the consumer does not want immediately
Perceived risk and its implication for retailing
Perceived risk: the level of risk a consumer believes exists in respect for purchasing a specific product or service from a specific retailer.
Perceived means that is not always based on facts
Innovative outlets such as television shopping are viewed as higher risk
Traditional outlets have an advantage with high perceived risk items because their reputation and well trained sales persons are reassuring to the customer.
Financial risks can be reduced by offering guarantees and trial periods
Social risks can be reduced though a skilled sales force and established brands
Physical and functional risk can be addressed by using respected organisations as endorsers for the quality and functioning of the product.
Eight types of perceived risk
Functional risk : risk that products will not perform as expected like breaking down soon etc
Physical risk : risk to self and other that the product poses like possibility of health hazard
Financial risk : risk that product will not be worth it’s cost either in time or in money. Any possible further immediate costs to make it work properly
Social risk: risk that shopping at a specific retailer will cause embarrassment and may not meet with peer approval
Psychological risk: risk that poor product choice will risk consumers ego, where the purchase might be incompatible with consumers self image
Time loss risk: risk of spending too much or to little time on the purchasing, inconvenience or delays when product needs to be repaired or replaced
Future opportunity cost: risk that an improved or lower cost product may be available in the future
- rapid rate of new technology
Source risk: risk of trusting the retailer or organisation involved in the transaction
- relevant for online retailers
Factors affecting perceived risk
Familiarity with the product
Amount of information available
Number of alternatives available
Social visibility
Guarantees offered
Urgency of the need
Time available to shop
Risk relievers for consumer s
Seeking information from friends and family
Having brand loyalty
Obtaining expert advice
Product testing through private of gov organisations
Buying most expensive model
Seeking reassurance
Requiring guarantees
Retail outlet selection process for consumers
Same as choosing a brand
Recognises a problem Select an outlet Engages in external and internal search Evaluates alternatives Then makes a decision