What Influences Shopping? Flashcards
Culture can be described as…
The beliefs, customs and behaviour of a particular group of people
The culture of a group of people can determine:
What they wear How they speak Where they travel What they eat Where they live
Examples of how culture would affect shopping
Those with strong beliefs about protecting the environment would consider energy efficiency and recycling when purchasing electrical goods e.g. fridge freezer.
Mediterranean countries value food quality (i.e. home grown f+v, avoiding convenience foods, cooking with raw ingredients). Food shopping mainly carried out at small independent shops (i.e. delicatessens, bakeries and fishmongers) rather than at large supermarkets.
What happens during periods of economic growth?
Wages increase Easy access to credit Consumer confidence is high Retailers make large profits due to: - people shopping more frequently - impulse buying
What happens during periods of economic decline?
Disposable income decreases
Cost of living increases
Focussed shopping patterns (needs over wants)
How would high consumer confidence affect shopping?
High consumer confidence = increase on buying on credit. Many buy luxury things (e.g. holidays, fridge freezers, furniture) using interest free loans offered either in store or via credit card deals.
People’s income decreases for various reasons like…
Unemployment
Ill health
Retirement
Being a student/ single parent
How would a decrease in income affect shopping?
You might review use of services like gym membership, cable TV or internet use and ‘shop around’ for better deals.
A change in what/when/where you buy
Environmental and ethical factors
It’s our responsibility to consider these factors
Environmental factors
If it is food, is it organic?
Can it, and its packaging, be recycled?
Does it use a lot of energy?
In the case of fish, is it sustainable?
Ethical factors
We also need to think about the people involved in making/providing the product/service…
Has child labour been used?
Are they treated fairly?
Has a positive/negative impact been made on their culture/work force?
Examples of how environmental/ethical factors influence shopping
‘Bags for Life’ bags encourage consumers to recycle and reduce the amount of plastic carrier bags going to landfill.
Clothing brands that rely on child labour have been exposed in the press and consumers have been encouraged to stop buying the clothes.
Consumers’ personal characteristics and circumstances
Age Likes/dislikes Occupation Lifestyle Amount of free time
These factors tend to change at different stages of the lifespan.
Examples of how personal factors affect shopping
A student may have a quick packed lunch or canteen meal at a set time.
A business person may entertain clients over leisurely meal at restaurant.
A consumers interest in technology and branding may affect their choice of mobile phone.
Physiological factors relate to…
Maintenance of the body
Prevention of disease
Dietary disorders
Depend on interest and motivation to take care of well-being.
Examples of how physiological factors affect shopping
Avoiding food/ clothing material if you’re allergic to it.
Consumers wanting to achieve a healthy weight may consider
- weight loss services e.g. slimming club
- gym membership
- personal trainer
- new clothes
Psychological factors that inform who we are and what we do as individuals
Attitudes
Emotions
Body image
Personality (aggressive, sociable, self confident)
Examples of how psychological factors affect shopping
Sociable people
- eat out regularly (frequency of purchase)
- meet friends for coffee/drinks (types of things bought)
People with negative feelings about body image may choose to shop online rather than trying on clothes in store.
Social influences
Family
Friends
Sports teams
Church groups
Shops often use social factors in their marketing campaigns
Examples of how social factors affect shopping
Adults often loyal to supermarket chain and brands most frequently used by their family growing up.
Teenagers often take on attitudes and values of their peer group and this can impact on type, style and brand of clothing they purchase and wear.
Advantages and disadvantages of Independent shops
Advantages
- offer personal and friendly service
- usually in residential areas for ease of access
- usually sell things in small quantities, helping consumers to save money and reduce waste
Disadvantages
- may be more expensive
- stock may not be rotated or replaced regularly
- limited range of products for sale
Advantages and disadvantages of high street chain stores
Advantages
- uniform store layout making shopping easier
- stock wide range of items
- buy in bulk and can offer consumers value for money
Disadvantages
- can be very busy, making shopping stressful
- impersonal customer service
- lack individuality
Advantages and disadvantages of supermarkets
Advantages
- Economy of Sale means they can offer value for money
- offer extensive range of products, services and facilities
- offer range of financial incentives eg loyalty cards
Disadvantages
- usually situated out of town - need car or public transport
- often busy and large, making shopping time consuming
- special offers can encourage impulse buying, increase in expenditure
Advantages and disadvantages of shopping centres
Advantages
- offer range of shops under one roof
- extended opening hours and extensive parking improve accessibility
- often well designed and luxurious, and making experience enjoyable
Disadvantages
- if situated out of town - car or public transport
- often busy - stressful
- can be very large - difficult to navigate and time consuming
Advantages and disadvantages of internet shopping
Advantages
- products/services can be accessed/evaluated in comfort of own home
- available 24 hours a day
- extensive range of products/services, including specialist and overseas brands
Disadvantages
- need internet access and know how to use it
- need credit/debit card
- goods/services can be time consuming to compare and may be misrepresented
Advantages and disadvantages of mail order
Advantages
- convenient for those who have difficulty accessing shops
- often payment can be spread over no of months
- large/heavy items can be delivered directly to your address
Disadvantages
- can be difficult to judge quality from catalogue
- consumer needs to be at home to accept delivery
- may have to pay for postage to return unwanted goods
Advantages and disadvantages of going to markets
Advantages
- may be cheaper than shops
- local products often available
- friendly, sociable shopping experience
Disadvantages
- packaging/labelling may not be available to help determine quality
- often outdoors, affected by weather
- usually operate early in the morning, or on specific days only
Advantages and disadvantages of shopping channels
Advantages
- can see products being demonstrated by experts
- products can be viewed in comfort of own home
- entertaining
Disadvantages
- persuasive selling can encourage impulse buying
- difficult to determine quality
- returning unsatisfactory products can be time consuming and expensive
What is marketing?
Marketing is a complex process which ultimately persuades consumers to buy a particular product or service
What is a marketing strategy?
A marketing strategy is a plan of action designed to promote and sell a product or service - used to increase sales and achieve a competitive advantage
What are the principles of marketing?
PRODUCT what is it?
PRICE what does it cost?
PLACE where will we sell it?
PROMOTION how will we tell consumers it exists?
What are the 3 main marketing strategies?
Advertising
Selling techniques
Financial incentives
Contexts for advertising
Media (newspapers, magazines, TV)
Outdoors (billboard posters, transportation eg bus shelters, illuminated signs)
Direct mail (leaflets, fliers, vouchers)
Sponsorship (sports events, entertainment events, charitable events)
What is the main purpose of advertising?
To develop increased levels of recognition and awareness among consumers.
Advertisements often provide limited factual information and instead rely on matching up with consumers’ desires, dreams and aspirations.
What is a target group?
A target group of consumers within the market, that a business has decided to aim its marketing efforts towards.
Egs children, girls, students
Packaging as a selling technique
Bright, colourful, glossy packaging creates a perception of quality and increases likelihood of purchase
Loss leaders as a selling technique
Stores may sell a product at a special offer price which is so low that the sales make the store a loss rather than a profit - encourages consumers into store, hoping that they’ll buy other things while they’re there
Own brands as a selling technique
Stores that offer their own brands as cheaper alternatives to branded products
Price checking as a selling technique
Shops highlight products that they are offering at lower prices than other stores, to show that they are giving better value for money
Beacon colours as a selling technique
Stores use bright colours to highlight special offers
Pester power as a selling technique
Products are marketed specifically at children, often with endorsements from TV/cartoon characters
Store layout as a selling technique
To encourage consumers through the door and get them to stay for some time, bc the longer they stay, the more they spend
Financial incentives - price promotions
May take form of discount
eg Buy one get one free
or 20% extra free
Financial incentives - cross-brand promotions
Where different brands are sold together, as part of a special offer. They offer consumers the opportunity to buy a product and sample the complementary product free e.g. perfume/aftershave
Financial incentives - money-off vouchers
Often used to offer a current or future discount. Highly versatile as they can be included on the pack (to encourage repeat purchase), in direct mail or in newspaper ads
Financial incentives - loyalty cards
Allows consumers to collect points which are then used to give them money off vouchers or to offer them a choice of gifts.
Brands/retailers will retain more customers if the focus of their loyalty cards is on building long-term relationships between the retailer and the customers
Financial incentives - gift with purchase
E.g. spend £25 on groceries and get a free set of BBQ utensils. This style of promotion is often used with luxury goods, with the gift hopefully enhancing quality of purchase
Store layout - entrance
Clear space to allow adjustment to atmosphere
Heating blows warm air on customer - psychologically welcoming
Store layout - look to right
75% customers look to right when entering
Magazines encourage browsing
Store layout - fruit and veg
Near front - associated with freshness and quality
Positive effect on sales
Store layout - on the shelf
From left to right - more expensive on right
Cheaper products on highest/lowest shelves to prevent customers from seeing it too easily
Items appealing to children on lower shelves
Store layout - aisle
Customers with trolleys slow down at end of aisle - “hot spots” where they display special offers and impulse purchases
Grouping items around theme e.g. BBQs - encourages customers to buy more than they’d planned
Store layout - bread and milk
Essential purchases displayed at back so customers have to walk past everything else to get there
Store layout - end
Alcohol displayed at end
Store layout - at the checkout
Last chance to tempt customers - usually include sweets or other good depending on the weather/season
Lifestyle changes that impact on choices and management of resources
Commitments e.g. dependents (children) Economic climate Time Stress Leisure Travel Work
