Lecture Unit 9: Pre-purchase, purchase and post-ppurchase proces (2/3) Flashcards
What are noncompensatory evaluation strategies?
= a product’s weakness on one attribute cannot be offset by strong performance on another attribute
What is the Lexicographic strategy?
- Brands are compared based on the most important attribute
- The brand that scores highest on this attribute is chosen
- If multiple brands score equally, the comparison moves to the second most important attribute,
- and so on, until a winner is identified.
What distinguishes the elimination by aspects strategy from the lexicographic strategy?
- Similar to the lexicographic strategy, brands are compared on key attributes one at a time
- However, the consumer sets a cutoff point for each attribute
- Brands that do not meet the cutoff for any attribute are immediately eliminated from consideration
How does the conjunctive strategy work in selecting brands?
- Each brand is compared, one at a time, against a predefined set of minimum acceptable standards for each salient attribute
- A brand must meet or exceed all the established cutoffs for all attributes to be chosen
What are compensatory evaluation strategies in consumer decision-making?
- a perceived weakness in one attribute of a product can be offset by a strong performance in another
What is the simple additive strategy in consumer decision-making? (Compensatory evaluation strategies)
- the consumer evaluates each alternative based on a set of salient evaluative criteria
- They count or add the number of times each alternative is judged favorably across these criteria
- The alternative with the** highest total** number of favorable judgments is chosen
What is the weighted additive strategy in consumer decision-making? (Compensatory evaluation strategies?
- Judgments about an alternative’s performance on each attribute are weighted according to the importance of that attribute
- The alternative that scores the highest when all weighted scores are summed up is chosen
Why do consumers often struggle to determine the best alternative for themselves?
- Consumers often face difficulties in decision-making
- because they may not have the capability or the necessary information to accurately evaluate all available choice alternatives.
- This limitation can lead to suboptimal choices
How do consumers use signals in decision-making, and what are the risks?
- tend to rely on signals such as price, brand name, warranty, and packaging to infer product quality
- these signals may not always be accurate indicators of actual quality, leading to potential misjudgments
What do consumers decide in the purchase process?
- Whether to buy
- When to buy
- What to buy (product type/brand)
- Where to buy
- How to pay
–>Consumers Make
- A fully planned purchase
- A partially planned purchase
- An unplanned purchase
What is a fully planned purchase?
Fully planned: both the product and brand are chosen in advance
- Purchase planning is more likely to occur when product involvement is high with purchase affected by in-store factors and marketing efforts
What is a partially planned purchase?
Partially Planned: intent to buy the product exists, but brand choice is deferred until shopping
- When involvement is low, consumers resort to buying a brand they know and like but may also be influenced by price reductions or special displays
What is a unplanned purchase?
Unplanned: both the product and brand are chosen at the point of sale
- In-store influences can guide product and brand choices made by consumers
- reminding them of a need and triggering a purchase
What is the purchase factor?
- When and if purchase occurs is affected by timing factors
- Timing also affects the price and the liklihood of a purchase
- When making a purchase, consumers must also decide how to pay - cash, checks, or plastic
What is important to consider for the retail image?
- Consumers rely on their overall perception of a store (store image)
- Involves both functional and emotional attributes
- The perceived level of crowding within the store may also affect shopping behavior, reducing shopping for some consumers while appealing to other segments
What are determinants of retailer sucess?
- Location
- Price
- Physical store attributes
- Consumer logistics
- Advertising and promotion
- Nature and quality of assortment
- Sales personnel
- Service offered
- Nature of store clientele
- Point of purchase displays
Determinants of retailer sucess:
What is important to consider about the location?
- Perceived in terms of time and hassle in addition to actual distance
- Cognitive maps or consumer perceptions of store locations and shopping areas are more important than actual location
- Consumers generally overestimate both actual distance and time
Determinants of retailer sucess:
What is important to consider about the nature and quality of assortment?
- Depth, breadth, and quality of assortment
- Specialty stores
- Mass merchandisers
- Department stores
- Value merchants
Determinants of retailer sucess:
What is important to consider about the price?
- Price as a determinant of store patronage varies by type of product
- The importance of price depends on the nature of the buyer
- Consumers’ perception of price is usually more important than the actual price
- Consumers ultimately rely on their overall image of the retailer to filter the effects of price advertising
Price promotions effect?
Effects of price promotions on:
- Building store patronage
- Demand for different brands
- Short-term buying behavior
- Long-term buying behavior
Determinants of retailer sucess:
What is important to consider about the advertising and promotion? (Image vs. information advertising)
Image advertising:
- Visual components and words that
help consumers form an expectation about their experience in the store
- and about what kinds of consumers will be satisfied with the store’s experience
Information advertising:
- Details provided about products, prices, hours of operation, locations
- and other attributes that might influence purchase decisions
Determinants of retailer sucess:
sales personnel: What makes them effective?
= Salespeople are important when choosing a store or shopping center
What makes a salesperson effective?
- Perceived knowledge and expertise
- Perceived trustworthiness
- Customer knowledge
- Adaptability
- Recruiting, training, and motivating
Determinants of retailer sucess:
What is important to consider about the service offered?
- Varies depending on the type of outlet and consumer expectations
- Includes such considerations as self-service facilities, ease of merchandise return, delivery, credit, and overall good service
Determinants of retailer sucess:
What is important to consider about the Physical store attributes?
- The physical properties of the retail environment designed to create an effect on consumer purchases are referred to as store atmospherics
- Can help shape the direction and duration of consumer attention, express the store’s character or elicit particular emotional reactions
Determinants of retailer sucess:
What is important to consider about the Nature of store clientele?
- The type of people who shop in a store affects consumer purchase intention because of the tendency to match one’s self-image with that of the store
- Some customers may be attracted to or repelled from a store due to their perception of the store’s clientele
Determinants of retailer sucess:
What is important to consider about the Point-of-sales displays?
POP displays and signs can increase the odds of capturing attention and stimulating purchase
* * Digital POP
* * Computer Enhanced Merchandising
* * Digital Self-Service
What is the advantages of POP displays?
- Inexpensive compared to other forms of promotion
- They reach people where they buy the products
- They add atmosphere to retail stores
Determinants of retailer sucess:
What is important to consider about the Consumer logistics?
- The speed and ease with which consumers move through the retail and shopping process: Preparation to shop + Arriving at the store + Entering the store + Movement through the store + Checkout + Travel home and home-warehousing + Inventory stockouts (which prompt repurchase)
- The purchase process is facilitated, positively or negatively, by consumer logistics
- What consumers expect and demand from a purchase situation changes depending on what type of store they are visiting
What do people spend when they make a purchase?
- Money
- Tiime
- attention
What is the concept of time budgets?
- People have “unlimited” money budgets: have potential to earn as much money as they want
- People have limited time budgets: maximum of 24 hours per day
- How consumers allocate their time depends on their timestyles
What are timestyles?
= determine how consumers allocate their time
As people work and make more money, leisure time decreases leading to an increased value of time
What is discretionary time?
leisure time when individuals feel no sense of economic, legal, moral, social or physical
compulsion or obligation
What is nondiscretionary time?
= : includes physical obligations, social obligations and moral obligations
What are time-using goods?
- Goods that require time to use, such as television, skiing, fishing, golfing and playing tennis
- As consumer have less leisure time, they are often willing to spend more money on the precious time they do have (travel, extreme sports and eating out)
What are time-saving goods?
- Goods and services that gain leisure time by decreasing nondiscretionary time expenditures
- Housecleaning services or dishwashers and microwave ovens free up time to spend on leisure or other activities
- Some firms position products with time-saving benefit
What is polychromic time use?
Involves combining activities simultaneously
This trend has given rise to products:
- cellular phones (talk and walk or drive)
- online radio services (listen to music while working on computers)
- beepers for dental patients (wait for appointments and shop)
- prepared meals (shop for groceries and buy completed dinner at same store)
What is time price?
- Products have economic prices as well as time prices
- How much time it takes to shop for, install or use a product
- Firms sometimes use time prices in their ads (only takes 2 hours to install or 10 seconds for quick-dry paint)
