Topic&4

Buying,(Using(and(Disposing:
Situational(Influences
Chapter&10

BX2081'Consumer'Behaviour 1
It’s%all%about%the%experience

The$shopping$
experience$is$a$
pivotal$part$of$the$
purchase$decision.$
 5"aspects"to"consumer"experiences

1. Cognitive:"expectations,"goals"and"thought"processes.

2. Emotional:"feelings"and"emotions.

3. Physical:"physical"surroundings.

4. Sensorial:"the"interaction"with"the"senses.

5. Social:"the"influence"of"other"people."

BX2081'Consumer'Behaviour 4
Role'of'situation'in'consumer'behaviour
Situation is#a#set#of#factors#apart#
from#the#consumer#and#the#product.#
1.'Situation'Offer'
0pportunities'&'threats

Marketers#must#understand:
1. When#a#particular#situation#will#affect#consumer#behaviour.
2. How#strong#the#effect#is#likely#to#be.
3. The#way#in#which#the#situation#will#influence#behaviour. (Quester-et-al)
BX2081'Consumer'Behaviour 5
Key$factors$related$to$purchase$
and$post2purchase$activities
 5"contextual"effect"on"buying"
1. Physical"surroundings:'the'environment'surrounding'the'
consumer.

2. Social"surrounding:'deals'primarily'with'other'persons'present.

3. Temporal"perspectives:'deals'with'the'effect'of'time'on'
consumer'behaviour.

4. Task"definition:'the'purpose'or'reason'for'engaging'in'the'
consumption'behaviour.

5. Antecedent"states:'features'of'the'individual'that'are'not'lasting'
or'relatively'enduring'characteristics.
BX2081'Consumer'Behaviour 7
The$physical$(retail)$environment,$can$affect$
our$mood$and$behaviour

8
BX2081'Consumer'Behaviour
 1.#Physical#surroundings

• Store#location
• Interior#decor
• Music 2.#Music

• Smell/aromas 3.#Smell/aromas
• Temperature#(air#conditioning/heating)
• Choice#provided#(by#product#category#or#
across#the#categories)

(Quester(et(al)
 The$Effect$of$Physical$Surroundings
• Store&image:&a&store’s&personality&is&composed&of&attributes&such&as&
location,&merchandise&suitability&and&the&knowledge&and&congeniality&
of&the&sales&staff 4.&Store&image

• Atmospherics&– the&use&of&space&and&physical&features&in&store&design&
to&evoke&effects&in&buyers 5.&Atmospherics

• Shopping&centres as&‘third&places’
• Retail&theming:&strategy&where&stores&create&imaginative&
environments&that&transport&shoppers&to&fantasy&worlds&or&provide&
other&kinds&of&stimulation
• Being&space:&the&environment&resembles&a&commercial&living&room&
where&we&can&go&to&relax,&be&entertained,&hang&out&with&friends,&
escape&the&everyday&or&even&learn&(i.e.,&cafes)
• Other&spaces&cater&for&the&needs&of&minipreneurs:&oneFperson&
businesses. BX2081&Consumer&Behaviour 10
Store&atmosphere&and&shopper&behaviour

(Quester(et(al)
BX2081'Consumer'Behaviour 11
Shopping(centres are(a"‘third"place’,"a(public(place(where(
people(gather(for(socializing(beyond(home(and(work
 A"third"place"- example

Exhibit"6.5"The$Dubai$Mall$is$famous
for$its$highly$aesthetic$environment.

COURTESY)KIEV)VICTOR/SHUTTERSTOCK.COM

Consumer$Behaviour 13
 Shopping(
It#is#estimated#that#two$out$of$every$three$
supermarket#purchases#are#decided#in#the#store.
How#do#supermarkets#get#us#to#spend#more?#
Why#is#it#so#hard#to#avoid#‘impulse#buys’?#What#types#
of#products#are#bought#on#impulse?

BX2081'Consumer'Behaviour 14
Consumer)Behaviour 15
POP#Merchandising#
can#attract#attention#
and#stimulate#sales

(Val#Ortega)
Typology'of'service'environments

Figure'2.3
Note:&The&darker&the&shading,&the&more&important&the&physical&features&of&the&servicescape.
Source:(Adapted(from(Wakefield(KL(&(Blodgett(JG((1999),(‘Customer(response(to(intangible(and(
tangible(service(factors’,(Psychology&&Marketing,&January,&p.&54.. (Quester(et(al)
BX2081'Consumer'Behaviour 17
Impact'of'physical'environment'
on'sporting'event

<insert(figure(2.4>

Figure'2.4

(Quester(et(al)
Note:&The&darker&the&arrows,&the&more&important&the&physical&features&of&the&servicescape.
Source:(Adapted(from(Uhrich S(&(Koenigstorfer J((2009),(‘Effects(of(atmosphere(at(major(sports(events:(a(perspective(from(environmental(psychology’,(
International&Journal&of&Sports&Marketing&&&Sponsorship,&vol.&10,&issue&4,&pp.&325–44.
BX2081'Consumer'Behaviour 18
 The$Purchase$Environment
• Diageo$discovered)that)60%)of)bar)customers)don’t)know)what)they)
will)drink)until)seconds)before)their)place)their)order!
• They)experimented)with)the)bar)/)purchase)environment.)
• They)also)offer)an)online)experience)– make)your)own)cocktails)
.https://uk.thebar.com/

BX2081)Consumer)Behaviour 19
 2.#Social#surroundings

• Types#of#customers#in#the#store 6.#Type#of#customers

• Queues#and#crowding
• Whether#there#are#high;profile#
people/celebrities#shopping#at#that#store
• Whether#the#product#will#be#consumed#
privately#or#in#the#presence#of#others 7.#Private#or#public

(Quester(et(al)
 Examples)of)Social)Surroundings

• Presence'of'other'people'that'could'have'an'impact'on'
individual’s'behaviour
• Co#consumers:,other'patrons'in'a'consumer'setting
• Emotional,contagion:'the'transference'of'emotions'from'one'
individual'to'another
– Do'frontline'staff'express'positive'emotions?
• Density,versus,crowding,has'an'influence'on'shopper’s'perceptions,'
buying'and'post=purchase'response'(negative).
• Types of'consumers'who'patronise'a'store,'i.e.,'trend=setters,'high=
profile people/celebrities.

BX2081'Consumer'Behaviour 21
 3.#Temporal#influences

• Whether#the#product#is#seasonal 8.#Seasonal#food
• Whether#the#product#is#urgently#required#
(snack#between#lectures)
• Time#available#for#shopping 9.#Time#available

– limited/excess#(the#product#may#be#an#excuse#
for#shopping)
• How#long#the#previous#product#lasted#or#
was#expected#to#last
(Quester(et(al)
 Temporal)Factors
• Economic'Time
– Time)poverty:)a'feeling'of'having'
less'time'available'than'is'required'
to'meet'the'demands'of'everyday'
living
– Consumers'are'seeking'
convenience;'buying'new'products'
that'let'them'multi=task
– People'are'increasingly'
outsourcing'household'tasks'
(Airtasker)
BX2081'Consumer'Behaviour
• Psychological'Time
• Four)dimensions)of)time:)
– the'social'dimension'(time'for'me'
or'time'with/for'others)
– the'temporal'dimension'(past,'
present'or'future)
– planning'orientation'(i.e.'time'
management'styles)
– polychronic orientation'(i.e.,'
multi=tasking)
• Queueing)theory:'
– the'mathematical'study'of'waiting'
lines'
23
Temporal)factors

BX2081'Consumer'Behaviour 24
Temporal)perspective)of)purchase)decisions)

COURTESY)OF)HAIGH’S)CHOCOLATES,)PHOTOGRAPHY)RANDY)LARCOMBE COURTESY)OF)IRISH)INTERNATIONAL,)DUBLIN,)IRELAND

BX2081'Consumer'Behaviour 25
 Task'definition
• Task': the'reason'for'engaging'in'consumption'/'the'usage'
purpose'for'which'consumers'purchase'a'good'or'service
– is'it'a'gift'or'for'oneself? 10.'Utilitarian'or'
status'symbol
– Whether'the'product'is'utilitarian'or'used'as'a'status'symbol
• The'usage'situation'–How'is'the'product'going'to'be'used?'
Is'the'product'for'everyday'use'or'for'special'occasions?'Is'
the'product'going'to'be'used'by'several'people?'
– e.g.'furniture'for'a'beach'holiday'home'versus'main'residence.
– e.g.,'an'everyday'watch'or'a'dress'watch'
– e.g.'a'motorbike'for'commuting,'on'the'farm'or'a'dirt'bike.
• Can'be'a'basis'for'segmentation
BX2081'Consumer'Behaviour 26
Spontaneous*or*planned*shopping?*

Two$different$processes:

• They&engage&in&unplanned$buying$when&they’re&
unfamiliar&with&a&store’s&layout&or&perhaps&are&under&
some&time&pressure.&Or,&if&they&see&an&item&on&a&store&
shelf&this&might&remind&them&that&they&need&it.&About&
one<third&of&all&unplanned&buying&occurs&because&a&
shopper&recognises&a&new&need&while&they’re&in&the&
store.

• A&shopper&engages&in&impulse$buying$when&they&
experience&a&sudden&urge&they&simply&can’t&resist.

BX2081*Consumer*Behaviour 27
 5.#Antecedent#states

• Moods 12.#Moods

– Feeling#sad#triggers#buying#sweets#or#seeing#a#
funny#movie
– Feeling#rejected#triggers#buying#games'#software
• Momentary#conditions
– Can't#eat#ice=cream#because#teeth#hurt
– Can't#buy#a#book#because#the#credit#card#was#left#
at#home
– Buy#more#groceries#because#hungry#before#
shopping
 Antecedent'States

• Features'of'the'individual'that'are'not'lasting'characteristics
• Moods'– transient'state'of'mind'that'is'generally'not'tied'to'a'specific'event'
or'object;'some'combination'of'pleasure'and'arousal;'a'mood'state,'either'
positive'or'negative,'biases'the'judgement'of'products'and'services
– Feeling happy'means'we'process'ads'with'less'‘elaboration’'
– Feeling'mellow'means'we'might'buy'more
– Feeling'sad'might'trigger'the'purchase'of'chocolate.
– Feeling'hungry'means'buying'more'groceries

BX2081'Consumer'Behaviour 29
Dimensions(of(emotional(states

BX2081(Consumer(Behaviour 30
 Ritual'situations
• Socially(defined(ritualised(and/or(
symbolic(behaviours(
• Important(to(marketers(as(they(define(
consumption,(e.g.(anniversaries,(seasonal(
gifts
• Traditions(and(rituals(being(continued(
and(developed,(e.g.(Valentine's(Day 13.(Rituals
Contextual*factors*/ example

Table&2.2&Ten$examples$of$how$contextual$factors$could$influence$the$decision$to$eat$out$and$the$choice$of$
restaurant
BX2081'Consumer'Behaviour 32
Situational)influences)and)marketing)strategy

• Developing*a*situational*influence*matrix
• Positioning*the*product*based*on*situation
• Segmenting*the*market*based*on*usage*
situation
– Alone
– In*combination*with*other*segmentation*variable
– Person/situation*segmentation
Usage&situations&and&product&positioning

Figure&2.6&Usage&situations&and&product&positioning BX2081&Consumer&Behaviour 34
Online&shopping
E"Commerce:*online*
shopping*using*a*computer

F"Commerce:*shopping*
using*Facebook

14.$E&commerce
Online&versus&face.to.face&shopping&experience&

Online&shoppers&value&these&aspects&of&an&e2commerce&website:

• The&ability&to&click&on&an&item&to&create&a&pop2up&window&with&more&
details&about&the&product,&including&price,&size,&colours&and&inventory&
availability.
• The&ability&to&click&on&an&item&and&add&it&to&your&cart&without&leaving&the&
page&you’re&on.
• The&ability&to&‘feel’&merchandise&through&better&imagery,&more&product&
descriptions&and&details.&This&includes&being&able&to&view&the&product&
from&multiple&angles&and&zoom&in&to&see&quality.
• The&ability&to&enter&all&data&related&to&your&purchase&on&one&page,&rather&
than&going&through&several&checkout&pages.
• The&ability&to&mix&and&match&product&images&on&one&page&to&determine&
whether&they&look&good&together.

BX2081'Consumer'Behaviour 37
Pros%and%cons%of%e,commerce
 Shift&towards&m.commerce
• Shift&towards&m.commerce&(shopping&using&a&mobile&phone)&and&portable&
payments&(i.e.,&fashion&sector,&airlines)
• Impulsive&purchases
• Issues&include
– Optimising&website&for&mobile&(display&on&phone&versus&desktop
– Convenience&&&ease&of&use
– Security&(&concern&about&credit&card&details)
– Pricing&(expectation&that&goods&will&be&cheaper&– are&they?)
– Choice
– Creating&value&through&apps;&geo.location

Consumer+Behaviour 40
E"commerce(impact(on(consumer(
decision(making(process

• Quick'access'to'information.
• Allow'for'comparison.
• More'informed'decisions.
• Wider'choice'(global)'of'stores'to'purchase.
• 24'hours'shopping.
• Save'time.
• Avoid'long'queues.'
• Easy'payment.
• Easier'return'policy.
• Resell'platform.

(Val'Ortega)
Post%Purchase,Outcomes

Value:'economic,'
social,'hedonic'and'
altruistic'(Holbook,'
2006)
 Satisfaction
• Evaluation.of.a.purchase.is.defined.by.
perceived performance.relative.to.
expectations. 15..Satisfaction

– Satisfaction.if.expectations.are.exceeded
– Dissatisfaction.if.expectations.are.not.met
• Expectations.are.often.set.by.brand.
communications.
– Marketers.need.to.be.aware.of.consumer.
expectations.
(Quester*et*al)
Dimensions(of(performance
• Customers(switch('away'(from(service
providers(rather(than('to' providers.
• In(one(study,(the(reasons(were:
– core(service(failure((44%)
– service(encounter(failures((34%)
– inconvenience((21%)
– response(to(service(failures((17%)
– attraction(to(competitors((10%)
– ethical(problems((7%)
– involuntary(switching((6%). (Quester*et*al)
 Marketing*strategy*and*
dissatisfied*consumers

• Marketers(need(to(satisfy(consumer(
expectations(by:
– creating(reasonable(expectations(through(
promotional(efforts
– maintaining(consistent(quality(so(that(these(
reasonable(expectations(are(fulfilled
– offering(a(way(for(consumers(to(voice(complaints(
directly to(the(brand((avoid(public(voicing).

(Quester*et*al)
 Types&of&performance
• Instrumental 16.&Instrumental&/&Symbolic

– Does&the&product&actually&achieve&it's&required&
purpose?
• Symbolic
– Does&it&enhance&the&consumers&self<concept&in&
the&desired&way?
• Example:&iPads&were$symbolic&of&innovation&but&
now&even&grandparents&have&them,&therefore&they&
don't&enhance&self<concept.
• Affective
– Did&the&product&make&you&feel&good?
(Quester*et*al)
 Brand&loyalty
Brand&loyalty&is:
– biased
– a&behavioural&response
– expressed&over&time
– a&consumer&selects&a&brand&over&alternative&brands&
– a&function&of&psychological&processes.

Note:&repeat&purchase&behaviour&simply&involves&the&frequent&
repurchase&of&the&brand.
 Three%dimensions%of%brand%loyalty

There%are%three%core%dimensions%to%loyalty:

Attitude: consumers%attitudes%toward%the%brand%in%general%
or%attitudes%towards%the%suggestion%of%switching%brands.

Behaviour: consumers%tendency%to%buy%the%brand%over%
others.

Price0Sensitivity: consumers%tendency%to%be%prepared%to%
pay%more%for%the%brand%they%are%loyal%to.
(Val%Ortega)
Post%Purchase,Outcomes
Sustainability

Green%marketing:%integrating(sustainability(
efforts(into(core(marketing(and(business(
processes,(i.e.,(Toyota(Prius.
Social%Marketing:(influencing(consumers(or(
suppliers(to(encourage(behavioural change,(i.e.,(
reduce(car(use.
Critical%Marketing:(stimulate,(regulate(and(
control(innovation(in(markets(to(encourage(
sustainability<(a(critical(examination(of(
marketing(systems.,(i.e.,(making(Fair(Trade(
mainstream(rather(than(niche.
Sustainability
Consumers’*Disposal*Options
Product(disposal(and(marketing(strategy

• Disposal(of(the(product(or(its(package(may(
occur(before,(during(or(after(product(use.(
• Recycling 17.(Recycling

– Product
– Package
• Trade<ins/exchanging 18.(Trade<ins

– To(motivate(replacement
• Second<hand(markets
– Example:(textbooks,(clothes
– 'Cash(converters' (Quester*et*al)
 Disposal(and(the(environment

• Eco$friendly-disposal-options-are-increasingly-
important:
– both-for-consumers-and-the-finances-of-
companies.
• Brands-use-this-as-a-point-of-difference.
• Pro$environmental-organisations-do-too
– Example:-Greenpeace-'Stop-Coca$Cola-Trashing-
Australia' campaign 19.-Stop-Coca-Cola
(Quester'et'al)
CB#AS#I#LIVE#IT:#Recycling#and#upcycling#my#way#to#purchasing
Emmanuel#Nassar,"The"University"of"Sydney

Evoked'set:'choose'brands'that'are'
beneficial'for'me'and'the'environment.

Positive beliefs'regarding'upcycled'
products,'i.e.'using'unwanted'materials'
to'developed'something'of'greater'
value

Negative'attitudes'> dislikes'recycled'
toilet'paper'and'facial'tissues'> high'
hygiene'standards

Engages'in'recycling
 Summary

• Examined)five)contextual)effects)on)buying)and)
disposal)
• Identified)how)the)purchase)environment)influences)
the)consumer)buying)process
• Compared)the)online)and)face;to;face)purchase)
environments
• Applied)consumer)behaviour theories)to)explain)how)
consumers)respond)to)marketing)purchase)stimuli

BX2081)Consumer)Behaviour 58
 Chapter'10'Learning'Snapshot

• The%act%of%purchase%can%be%affected%by%many%factors.%These%include%the%five%
classes%of%contextual%factors:%social%surroundings,%physical%surroundings,%
antecedent%states,%temporal%factors%and%task%definition.

• Social%and%physical%surroundings%refer%to%the%built%environment%and%the%
density%and%behaviour%of%consumers%in%the%store.

• The%antecedent%state%refers%to%consumers’%moods,%time%pressure%or%
disposition%towards%shopping.

• Time%is%an%important%resource%that%often%determines%how%much%effort%and%
search%will%go%into%a%decision.

• Mood%can%be%affected%by%the%degree%of%pleasure%and%arousal%a%store%
environment%creates.

BX2081'Consumer'Behaviour 59
• The%shopping%experience%is%a%pivotal%part%of%the%purchase%decision.%In%many%
cases,%retailing%is%like%theatre—the%consumer’s%evaluation%of%stores%and%
products%may%depend%on%the%type%of%‘performance’%he%or%she%witnesses.%The%
actors%(e.g.%salespeople),%the%setting%(e.g.%the%store%environment)%and%the%
props%(e.g.%store%displays)%influence%this%evaluation.%A%store%image,%like%a%
brand%personality,%is%determined%by%a%number%of%factors%such%as%perceived%
convenience,%sophistication%and%expertise%of%salespeople.

• With%increasing%competition%from%nonEstore%alternatives,%the%creation%of%a%
positive%shopping%experience%has%never%been%more%important.%Online%
shopping%is%growing%in%importance,%and%this%new%way%to%acquire%products%has%
both%good%(e.g.%convenience)%and%bad%(e.g.%security)%aspects.

• Because%many%purchase%decisions%are%not%made%until%the%time%the%consumer%
is%actually%in%the%store,%pointEofEpurchase%(POP)%stimuli%are%very%important%
sales%tools.%They%include%product%samples,%elaborate%package%displays,%placeE
based%media%and%inEstore%promotional%materials%such%as%‘shelf%talkers’.%POP%
stimuli%are%particularly%useful%in%stimulating%impulse%buying%where%a%consumer%
yields%to%a%sudden%urge%for%a%product.
BX2081'Consumer'Behaviour 60
• Consumer*satisfaction*is*determined*by*the*person’s*overall*feeling*towards*
the*product*after*purchase.*Many*factors*influence*perceptions*of*product*
quality,*including*price,*brand*name*and*product*performance.

• Customer*value*is*a*subjective*purchase*outcome*and*comes*in*four*forms:*
economic,*social,*altruistic*and*emotional*value.Brand loyalty*is*an*important*
endAgoal*for*both*organisations*and*customers.*For*organisations,*loyal*
customers*create*sustainable*income*generation,*and*for*consumers,*loyalty*
can*be*emotionally*and*psychologically*rewarding.

• Product*disposal*is*an*increasingly*important*problem.*Recycling*and*
upcycling*are*two*options*that*will*grow*as*consumers’*environmental*
awareness*grows.

• Lateral*cycling*occurs*when*objects*are*bought*and*sold*secondAhand*or*
bartered*in*an*increasingly*important*underground*economy.*

BX2081'Consumer'Behaviour 61