Bài giảng Consumer behaviour - Chương 4: Outlet selection and product purchase. Post-purchase processes - Nguyen Hoang Sinh
1/19/2018
Lecture 04
Outlet selection and product
purchase – Post-purchase
processes
The consumer decision process
Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 20
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1
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Learning objectives
• How the traditional retailing environment is
changing
• Trend towards internet retailing
• Factors that affect retail outlet selection
• Why consumer characteristics can also affect
outlet selection
• In-store influences that can affect brand
choice
• How marketers can capitalise on these
influences
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Postpurchase processes
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Consumer outlet selection
and product purchase
• Where will consumers shop?
• How do they choose a retail outlet?
– Consumer characteristics
– Store characteristics
• In-store decision alterations
• The purchase process
• Alternative to store selection
• Implications for strategy
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Outlet choice vs product choice
• Retail outlet first, brand second
• Brand (or item) first, retail outlet second
• Brand and retail outlet simultaneously
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Marketing strategy based on the
consumer decision sequence
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Retailers use quality brands to promote
the store
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The retail scene
• In retail stores
• Other outlets, non-store outlets
– Internet sales
– Markets, direct sales, etc.
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Online shopping
• Increasing number of consumers preferring to
shop online
– 5% in 1999 to 31% in 2004-5
• Females now using the internet
– Males 64%, females 62%
• Image of the outlet influenced by:
– Webpage design
– Convenience
– Security
– Pricing
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Online shopping by age groups
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Reasons for not purchasing on the
internet
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Attributes affecting retail
outlet selection
• Retail format
– Reflect different types of shopping behaviours
• Outlet image
– A consumer’s or a target market’s perception
of all the attributes associated with a retail
outlet
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Dimensions and components of store
image
Dimension
Component(s)
Merchandise
Quality, selection, price, style
Sales assist., return, credit
Other customers
Service
Clientele
Physical features
Convenience
Promotion
Clean, layout, etc.
Location, parking
Advertising
Store atmosphere
Institutional
Post-transaction
Fun, excitement, comfort
Store reputation
Satisfaction
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Attributes affecting retail outlet
selection
• Store brands
• Retail advertising
– Price advertising
• size of discount
• reference/comparison may be used
• words accompanying the price information
• Outlet location and size
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Expenditure of individuals drawn
to a store by an advertised item
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Outlet location and size
• Retail attraction model:
Si / Til
MSi
=
n
i= 1
Si / Til
S
MS = market share of store i
i
Si = size of store i (or mall)
Ti = travel time to store i
l
= attraction factor for a particular product category
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Consumer characteristics and outlet
choice
• Shopping orientation
• Perceived risk
– Financial risk
– Social risk
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Financial and social risks for
various types of products
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In-store influences that can affect
evaluation of alternatives and purchase
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In-store influences that alter brand
choices
• The nature of unplanned purchases
– Reminder purchases
– Impulse purchases
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In-store influences that alter brand
choices (cont.)
• The nature of unplanned purchases
– The specifically planned decision
– The generally planned decision
– The substitute decision
– The unplanned decision
– The in-store decisions
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Encouraging unplanned purchases -
‘gift-time’ and suggesting products
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In-store buying habits
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Point-of-purchase (POP) displays
• A device used by marketers and retailers at the
point of sale to inform consumers or encourage
them to buy; may comprise posters, cards, shelf
wobblers, etc.
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Point-of-purchase (POP) displays
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Shopper behaviour in response
to frequent stockouts
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Impact of stockout situation
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Store atmosphere and shopper behaviour
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Purchase
• Once the brand and store have been selected
• Complete transaction:
– Payment
– Online/security risk
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Learning objectives
• Be aware of the post-purchase activities
• Understand post-purchase dissonance
• Know why product use is important to
marketers
• Know why product disposal is important to
consumers
• Understand the concept of customer
satisfaction
• Understand the concept of consumer loyalty
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Post-purchase consumer behaviour
Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 184
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Post-purchase processes
• Post-purchase dissonance
• Product use and non-use
• Disposal
• Purchase evaluation
• Customer satisfaction
– repeat purchase behaviour and
– consumer loyalty
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Post-purchase dissonance
• Some purchases are followed by post-
purchase dissonance
• Probability of post-purchase dissonance and
the magnitude of dissonance is a function of:
– degree of commitment and/or whether the
decision can be revoked
– importance of the decision to the consumer
– difficulty of choosing among the alternatives
– individual’s tendency to experience anxiety
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Product use and non-use
• Product use
– use innovativeness
– regional variations
– multiple vs single use
• Packaging
• Defective products
– product recalls
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Product disposal and
marketing strategy
• Recycling
– product
– package
• Trade-ins
– to motivate replacement
• Second-hand markets
– E.g. textbooks, clothes/ ‘Cash converters’
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Purchase evaluation
and customer satisfaction
• The evaluation process
– Demension of performance
• Dissatisfaction responses
• Marketing strategy and dissatisfied
consumer
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Purchase evaluation
and customer satisfaction
• Evaluation of a purchase is influenced by:
– Expectations
– Perceived performance
• Dimensions of performance:
– Instrumental: physical/functional
– Symbolic: image
– Affective: emotional
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Purchase evaluation
and customer satisfaction
• The evaluation process
– Dimensions of performance
• Customers switch ‘away’ from service providers
rather than ‘to’ providers:
• Core service failure
(44%)
• Service encounter
failures (34%)
• Response to service failures
(17%)
• Attraction to competitors
(10%)
• Pricing (30%)
• Ethical problems (7%)
• Inconvenience (21%) • Involuntary switching (6%)
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Measuring customer satisfaction
• Qualitative measurement techniques
• Focus groups
• Surveys
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Purchase evaluation
and customer satisfaction
• Dissatisfaction responses
– Possible outcomes of a negative purchase
evaluation:
• Taking no action
• Switching brands, products or stores
• Warning friends and colleagues
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