5 th edition. mcgraw-hill/irwin levy/weitz: retailing management, 5/e copyright © 2004 by the...
TRANSCRIPT
5th Edition5th Edition
McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
CUSTOMER CUSTOMER BUYING BEHAVIORBUYING BEHAVIOR
Chapter 4Chapter 4
Illustration
Jennifer Sanchez, at San Francisco State University, is beginning to interview for jobs. For the first interviews on campus, Jennifer had planned to wear the blue suit her parents bought her three years ago. But looking at her suit, she realizes that it’s not very stylish and that the jacket is beginning to show signs of wear. Wanting to make a good first impression during her interview, she decides to buy a new suit.
Illustration (Continued)
Jennifer surfs the Internet for tips on dressing for interviews (www.collegegrad.com and www.careercity.com) and looks through some catalogs to see the styles being offered. But she decides to go to retail store so she can try it on and have it for her first interview next week. She likes to shop at Abercrombie and Fitch and American Eagle Outfitter, but neither sells business suits. She remembers an ad in the San Francisco Chronicle for women’s suits at Macy’s. She decides to go to Macy’s in the mall close to her apartment and asks her friend Brenda to come along. Jennifer values Brenda’s opinion, because Brenda is a clothes horse and has good taste.
Illustration (Continued)
Walking through the store, they see some DKNY suits. Jennifer looks at them briefly and decides they’re too expensive for her budget and too stylish. She wants to interview with banks and thinks she needs a more conservative suit.
Illustration (Continued)
Jennifer and Brenda are approached by a salesperson in the career women’s department. After asking Jennifer what type of suit she wants and her size, the salesperson shows her three suits. Jennifer asks Brenda what she thinks about the suits and then selects one to try on. When Jennifer comes out of the dressing room, she feels that the shoulder pads in the suit make her look too heavy, but Brenda and the salesperson think the suit is attractive. Jennifer decides to buy the suit after another customer in the store tells her she looks very professional in the suit.
Illustration (Continued)
Jennifer doesn’t have a Macy’s charge card, so she asks if she can pay with a personal check. The salesperson says yes, but the store also takes VISA and MasterCard. Jennifer decides to pay with her VISA card.
As the salesperson walks with Jennifer and Brenda to the cash register, they pass a display of scarves. The salesperson stops, picks up a scarf, and shows Jennifer how well the scarf complements the suit. Jennifer decides to buy the scarf also.
Types of Purchase Decisions
Extended Problem Solving
-High financial or Social Risk
Limited Problem Solving
-Some Prior Buying Experience
Habitual Decision Making
-Store Brand, Loyalty
What Retailers Need to do for Customers Engaged in Extended Problem Solving
Provide a Lot Information
-Use Salespeople rather than advertising to communication with customers
Reduce the Risks
-Offer Guarantees
-Return Privileges
What Retailers Need to do for Customers to Engage in Habitual Decision Making
It DependsIf the Customer Habitually Comes to You,
Reinforce Behavior-Make Sure Merchandise in Stock-Provide Good Service-Offer Rewards to Loyal Customer
If the Customer Goes to Your Competitor’s Store, Break the Habit-Offer Special Promotions
Customer Loyalty
Brand Loyalty Committed to a Specific BrandReluctant to Switch to a Different BrandMay Switch Retailers to Buy Brand
Store LoyaltyCommitted to a Specific RetailerReluctant to Switch Retailers
What Do Retailers Need To Do for Customers Engaged in
Limited Problem Solving
It Also Depends…If the Customer Is Coming to You, Provide a
Positive Experience and Create LoyaltyMake Sure Customer is SatisfiedProvide Good Service, Assortments, valueOffer Rewards to Convert to Loyal Customer
If the Customer Goes to Your Competitor’s Store, Change BehaviorOffer More Convenient Locations, Better Service and
Assortments
Encouraging Impulse Buying
Have Salespeople Suggest Add-onsHave Complementary Merchandise
Displayed Near Product of InterestUse Signage in Aisle or Special DisplaysPut Merchandise Where Customers Are
Waiting
Stages in the Buying Process
Why People Go Shopping
Purchase merchandise or services
Take a break from daily routine
Social experience
Learn new trends and fashions
Satisfy need for power and status
Self-rewards
Stimulating Need Recognition
Advertising and Direct Mail
Visual Merchandise in Store
Signage
Displays
Suggestions by Sales Associates
Factors Affecting Amount of Information Search
Characteristics of the Product Complexity Cost
Characteristics of Customer Past experience Perceived risk Time pressure
Market Characteristics Number of alternative brands
Sources of Information
ExternalConsumer reportsAdvertisingWord of mouth
Internal
Past experiences
Memory
How Can Retailers Reduce Information Search?
Extensive merchandise assortmentAssistance in locating alternativesEveryday low pricingCreditInformation from sales associates
Providing Information on Internet
Information about Retailers Selling Groceries
Belief About Retailers’ Performance Benefits
Information Used in Evaluating Retailers
Information Used in Purchasing a Suit
Information Needed to Use Multi-Attribute Model
Alternative Consumer ConsideringCharacteristic/Benefits Sought in Making
Store and Merchandise ChoicesRatings of Alternative Performance on
CriteriaImportance of Criteria to Consumer
Methods for Increasing Consumer Evaluation
Increase Performance Beliefs of Your StoreDecrease Performance Beliefs About
Competitor
Increase Importance Weight of Attributes
on which You Have an AdvantageAdd a New Benefit on which You Excel
Factors Influencing the Buying Decision Process
Social Factors Influencing Buying Decisions
Family
Reference Group
Culture
Methods for Segmenting Retail Markets
GeographicDemographic
Feelings and BehaviorsLifestyle
Segmenting Markets
Geodemographic Segmentation“Birds of a feather Flock Together”
Latino AmericaHispanic Middle ClassBoxing (+)Dance Music (+)Barbequing (-)Avocados (+)Cosmopolitan (+)Touched By an Angel (+)
Latino AmericaHispanic Middle ClassBoxing (+)Dance Music (+)Barbequing (-)Avocados (+)Cosmopolitan (+)Touched By an Angel (+)
Town and Gown
College Town Singles
Foreign Films (+)
Dogs (-)
Sewing (-)
Coca Cola (+)
Fast Food (+)
Friends (+)
Sports Illustrated (+)
Town and Gown
College Town Singles
Foreign Films (+)
Dogs (-)
Sewing (-)
Coca Cola (+)
Fast Food (+)
Friends (+)
Sports Illustrated (+)
Distribution of Grey Collar Aging Couples Near Suburbs
VALS2 American Lifestyles
Lifestyle SegmentationVALS
Action Oriented
High Resources
Follow Fashions and Fads
Spend a lot on socializing, entertainment
Impulse buyers
Influenced by advertising
Believers
Lower resources
Buy American
Look for bargains
Watch TV a lot
Read home and garden magazines
Criteria for Evaluating Segmentation Schemes
Actionability
Identifiability
Accessibility
Stability
Size
Example of a Composite Segmentation Scheme
Example of a Composite Segmentation Scheme
What is Fashion?
A type of product or way of behaving that is temporarily adopted by a large number of consumers because it is viewed as socially acceptable.
Why Consumers Buy Fashions
Communicate with Others
Manage Appearance
Express Self-Image
Enhance Ego
Impress Others
What Creates Fashion?
Economic Factors
Sociological Factors
Factors Affecting Fashion
Economic Development
Social Environment
Class structure
Role of men and women
Structure of the family
Personal Issues
Stages in the Fashion Life Cycle
What Affects the Rate Fashion Spreads?
Advantage
Compatibility
Complexity
Trialability
Observability
Theories of Fashion Diffusion
Trickle-Down Theory
Mass Market Theory
Subculture Theory