Chapter 10 Buying and Disposing

1. Chapter 10Buying and Disposing CONSUMER BEHAVIOR, 8eMichael Solomon

2. Issues Related to Purchase and Postpurchase Activities • A consumer’s choices are affected by many personal factors…and the sale doesn’t end at the time of purchase

3. Situational Effects on Consumer Behavior (cont.) • Mood Effects: The way we feel at a particular time affects what we buy or do • Day Reconstruction Method • How do morning vs. afternoon vs. evening vs. late-night purchases differ? • Weekend vs. weekday purchases • Situational self-image (“Who am I right now?”)

4. Social and Physical Surroundings Affect a consumer’s motives for product usage and product evaluation • Décor, odors, temperature • Co-consumers as product attribute • Large numbers of people = arousal • Examples: Jam-packed bars and stadiums • Interpretation of arousal: density versus crowding • Type of consumer patrons • social class • similarity to me

5. Temporal Factors (Time) What exactly is TIME? • Time styles: consumers try to maximize satisfaction by dividing time among tasks • Time poverty • One-third of Americans feel rushed • Marketing innovations allow us to save time • Polychronicactivity – “multitasking”

6. Temporal Factors (cont.) Psychological time: consumers’ perception of time • Often much different than reality • Time categories relevant to marketers • Good times for ads / sales messages: occasion/leisure times, time to kill, distraction needs • Bad times for ads / sales messages : flow, engrossment and deadline times • Time perspective metaphors • Time is a pressure cooker • Time is a map • Time is a mirror • Time is a river • Time is a feast

7. Temporal Factors (cont.) • Time styles / attitudes come from culture • Linear separable time – “there’s a time and place for everything”, follow the clock (Americans) • Procedural time – “when the time is right”, ignore the clock (French) • Circular/cyclic time – present-oriented, actions governed by the seasons (Hispanics), little sense of future • Queuing theory: mathematical study of waiting lines • Waiting for product = perception of good quality • Too much waiting = negative feelings • Marketers use “tricks” / distractions to minimize psychological waiting time

8. The Shopping Environment Antecedent states: mood/physiological condition influences what we buy, how much we spend and how we evaluate products and services • Mood = combination of “affective valence” and arousal • The difference between “mood” and “emotion” • Happiness = high in pleasantness and moderate in arousal • Elation = high pleasantness, high arousal • Mood biases judgments of products/services • Moods are affected by store design, music, interaction with staff, TV programs, ad humor, etc.

9. Reasons for Shopping Reasons for shopping: • Utilitarian vs. Experiential • Experiential / Hedonic reasons include: • Social experiences • Sharing of common interests • Interpersonal attraction • Instant status • The thrill of the hunt

10. Retailing as Theater • Competition for customers is becoming intense as nonstore alternatives multiply • Malls gain loyalty by appealing to social motives (much less about ‘buying product’) • Retail techniques: • Landscape themes • Marketscape themes • Cyberspace themes • “Home away from home”

11. FedEx Makeover BEFORE AFTER

12. Store Image Store image: personality of the store • Atmosphere • Location • Merchandise mix and layout • Congeniality / politeness / helpfulness of sales staff Is store image easy to copy?

13. E-Commerce: Clicks versus Bricks • E-commerce reaches customers around the world, but competition increases exponentially • Benefits: good customer service, technology value • Limitations: security/identity theft, actual shopping experience, large delivery/return shipping charges • Can marketers instill “good mood online?” • Is “store image” still relevant online?

14. Atmospherics & Consumer Involvement Atmospherics: conscious designing of space and dimensions to evoke certain effects • Colors/lighting, scents, and sounds/music affect time spent in store and spending • Getting Consumers Involved in a Product Creation Experience • Build-A-Bear Workshop • Club Libby Lu • Viking Home Chef and Viking Culinary Academy • Universal Studios

15. In-Store Decision Making • Spontaneous shopping consists of: • Unplanned buying: reminded to buy something • Impulse buying: sudden, irresistible urge to buy • Point-of-purchase (POP) stimuli: product display or demonstration that draws attention • Music store CD sampler, “endcap” displays • Salespeople Effects • Commercial friendships • Are “commercial friendships” a good idea? • Good salespeople vs. bad salespeople

16. Quality Is What We Expect It to Be • Expectancy disconfirmation • consumers form expectations of product quality based on prior performance and experience • Disconfirmation is when expectations aren’t met • Marketers must “manage expectations” • Don’t promise what you can’t deliver • Consider under-promising a little • When product fails, marketers must reassure customers with honesty

17. Customer Expectation Zones

18. Acting on Dissatisfaction Three ways consumers can act on dissatisfaction: • Voice response: appeal to retailer directly (encourage this!) • Private response: express dissatisfaction to friends or boycott store • Third-party response: take legal action • Or… Do nothing.

19. TQM: Going to the Gemba • Observe first-hand how people actually interact with their environment in order to identify potential problems • Gemba: the one true source of information • Need to send marketers/designers to the precise place of product consumption • Host Foods study in airport cafeterias

20. Going to the Gemba

21. Product Disposal • Strong product attachment = painful disposal process • Ease of product disposal is now a key product attribute to consumers • Disposal fees for tvs, computers, etc. • Some consumers buy new products before disposing of old products • The “move-then-throw-away” phenomenon • Disposal options (see next slide)

22. Consumers’ Disposal Options

23. Lateral Cycling: Junk versus “Junque” • Lateral cycling: already purchased products are sold to others or exchanged for still other things • EBay, Flea markets, garage sales, classified ads, bartering for services, hand-me-downs, etc. • Divestment rituals: • Iconic transfer: taking photos of objects before selling them • Transition-place: putting items in an out-of-the-way location before disposing of them • Ritual cleansing: washing, ironing, and/or meticulously wrapping the item