The Retail Environment Flashcards
Maslow’s Hierarchy of Needs
Self-actualisation Aesthetic needs Cognitive needs Esteem needs Belonging needs Security needs Survival needs
(Sethna & Blythe 2016)
Shopping has changed
= Shopping used to be for needs
= Now we define ourselves by what we consume, not by what we produce
Classification of consumer motives
Personal Motives
want or need? • Self-gratification • Learning about new trends • Physical activity • Sensory stimulation • Entertainment
(Schiffman et al., 2013)
(Personal Motives) Hedonism vs. Utilitarianism
- Hedonism is the cult of pleasure.
- Utilitarianism is the cult of practicality.
- Products have a mix of both features.
(Sethna & Blythe 2016)
(Personal Motives) How Personality Influences…
= Consumer Innovativeness – How receptive a consumer is to new experiences
= Consumer Susceptibility to Interpersonal Influence – How consumers respond to social influence
= Self-Monitoring – How sensitive an individual is to their environment and how they adapt their behaviour in response to this
= Consumer Ethnocentrism – Consumer’s likelihood to accept or reject foreign-made products
(Schiffman et al., 2013)
Social Motives
- Social experiences outside of the home
- Communication with like-minded
- Peer group attraction
- Status and authority
- Pleasure of bargaining (not modern enough, doesn’t fit high street retail)
(Social Motives) So it seems…
= Shopping is not always an outcome of product need
= Shopping activities may satisfy a variety of wants and needs
= Social-recreational industry
Therefore…
= Retailers need to understand the variety of shopping motives that may be present and incorporate this information into a retailing strategy
7P’s = service marketing
- Product
- Promotion
- Price - acts as an indicator of perceived quality
- Place = 4Ps = product marketing
- People = Personnel in key position to influence customer perceptions, Service quality inseparable from service provider, Training is crucial, Know expectation of customer, Adopt customer-first policy
- Physical evidence = Environment in which the service is delivered, Has a big impact on the customer’s decision, E.g. prospective customers look through a restaurant window at décor, furnishings, appearance of waiters, Colour and noise are major factors
• Process = Procedures and mechanisms by which a service is acquired, Efficient & effective, Enjoyable experience for
customer
(Kotler, 2016)
Servicescape
Servicescape is defined as:
• “the impact of the physical environment in which a service process takes place” (Bitner, 1992)
• “The physical elements of a consumption environment” (Bitner, 1992)
• “The servicescape offers a multitude of easily accessible
cues to customers seeking an information searching shortcut”
(Hooper, Coughlan and Mullen, 2013)
selling environment = sell products but made of many layers, create an environment, what our target consumers want? how would the experience make consumers feel? an experience can make a consumer feel things w/o even seeing the products.
(critiquing the role of servicescape in a consumers experience- list of retail marketing mix)
The Selling Environment
The idea of ‘the selling environment’ is made up
of many layers…
The Brand
The Store Exterior
The Window Display
The Interior
Makes you feel a certain way without even mentioning the physical products
The Retail Marketing Mix
- Store location
- Merchandise assortment
- Store ambience
- Customer service
- Price
- Communication
- Personal selling
- Store image
- Sales incentives
(Factors determining store choice) Store location
Traditionally, with physical stores, the closer consumers are to a store the greater their likelihood to purchase from that store
The further away consumers are from a store, the greater the number of intervening alternatives, thus the lower likelihood to visit that store
(Schiffman et al., 2013)
(Factors determining store choice) Merchandising
The goods and services offered by a retail outlet
Merchandising Techniques
= Store Layout and Traffic Patterns = A store’s interior is organised in such a manner as to accomplish the firm’s merchandising strategy. Retailers sometimes find, however, that their layout and design approach is failing to achieve company objectives.
= Displays = An effective combination of good store layout and attractive displays can change a boring retail environment into one that not only is more exciting but also produce more sales
= Product Shelving = Product Shelving has an important influence on consumer behaviour. Both the height at which products are displayed and the number of rows presented can influence sales of products.
(Factors determining store choice) Store Design and Physical Facilities
The design characteristics of a store can dramatically influence image perceptions and shopper loyalty. Both internal and external aspects of the store are important!
