CH 05

Consumer Behavior
Roger D. Blackwell
Paul W. Miniard
James F. Engel
Requests for permission to make copies of any part of the work should be
mailed to the following address:
Permissions Department, Thomson
Business and Economics
5109 Natorp Boulevard
Mason, OH 45040
800–423–0563
CHAPTER 5
Purchase
To Buy or Not to Buy?
The Purchase Process
Consumers decide:
Whether to buy
When to buy
What to buy (product type/brand)
Where to buy
How to pay
Fully Planned Purchase

Partially Planned Purchase
Unplanned Purchase
Fully Planned Purchase: both the

product and brand are chosen in
advance
Purchase planning is more likely
to occur when product
involvement is high with purchase
affected by in-store factors and
marketing efforts
Partially Planned Purchase: intent

to buy the product exists, but
brand choice is deferred until
shopping
When involvement is low,
consumers resort to buying a
brand they know and like but may
also be influenced by price
reductions or special displays
Unplanned Purchase: both the

product and brand are chosen at
point of sale
In-store influences can guide
product and brand choices made
by consumers reminding them of a
need and triggering a purchase
The Purchase Factor
When and if purchase occurs is

affected by timing factors such as
seasonality
Timing also affects the price and
the likelihood of a purchase
When making a purchase,
consumer must also decide how
to pay—cash, checks, or plastic
Why People Shop
While consumers may shop “to acquire
something,” there are many other
personal and social reasons
Why People Shop
Consumers who dislike shopping
embrace the Internet and other forms of
direct marketing to make shopping
quicker, easier, and less personally
involving
Why People Shop
Why People Shop
Consumers who dislike shopping
embrace the Internet and other forms of
direct marketing to make shopping
quicker, easier, and less personally
involving
Marketers should consider how their
core customers think of shopping—is it
fun or is it a chore for them?
The Purchase Decision Process
Deciding where and how to purchase

- Retail choice is an interactive
process where the type of store and
specific retailer affect each other
- Consumer characteristics are
matched to store characteristics and
purchase characteristics
- Past experience and store image
also influence specific store choice
Retail Image
Consumers rely on their overall
perception of a store (store image)
Involves both functional and
emotional attributes
The perceived level of crowding
within the store may also affect
shopping behavior, reducing
shopping for some consumers
while appealing to other segments
Retail Image
Retail Image
Retail Image
Determinants of Retailer Success
- Location
- Nature and quality of assortment
- Price
- Advertising and promotion
- Sales personnel
- Service offered
- Physical store attributes
- Nature of store clientele
- Point-of-purchase-displays
- Consumer logistics
Location
Perceived in terms of time and
hassle in addition to actual
distance
Cognitive maps or consumer
perceptions of store locations and
shopping areas are more important
than actual location
Consumers generally overestimate
both actual distance and time
Nature and Quality of Assortment
Depth, breadth, and quality of
assortment
- Specialty stores
- Mass merchandisers
- Department stores
- Value merchants
Assortment breadth: how vast or
wide the variety of products sold
(mass retailers)
(mass retailers)
Assortment depth: how deep the
categories of product sold
(specialty store)
(mass retailers)
Assortment depth: how deep the
categories of product sold
(specialty store)
Category killers: specialize in one
category of merchandise and
provide a dominant assortment of
products (Home Depot, Toys ’R Us)
Price
Price as a determinant of store
patronage varies by type of product
Importance of price depends on the
nature of the buyer
The consumer’s perception of price
is usually more important than the
actual price
Consumers ultimately rely on their
overall image of a retailer to filter the
effects of price advertising
Price
Effects of price promotions on:
- Building store patronage
- Demand for different brands
- Short-term buying behavior
- Long-term buying behavior
Advertising and Promotion
Image advertising: Visual
components and words that help
consumers form an expectation
about their experience in the store
and about what kinds of
consumers will be satisfied with
the store’s experience
Image Advertising
Advertising and Promotion
Information advertising: Details
provided about products, prices,
hours of operation, locations, and
other attributes that might
influence purchase decisions
Sales Personnel
Salespeople are important when
choosing a store or shopping center
Sales Personnel
What makes a salesperson effective?
Sales Personnel
- Perceived knowledge and expertise
- Perceived trustworthiness
- Customer knowledge
- Adaptability
Sales Personnel
- Perceived knowledge and expertise
- Perceived trustworthiness
- Customer knowledge
- Adaptability
Recruiting, training, and motivating
effective sales associates benefits
retailers
Services Offered
Varies depending on the type of
outlet and consumer expectations
Includes such considerations as
self-service facilities, ease of
merchandise return, delivery,
credit, and overall good service
Physical Store Attributes
The physical properties of the
retail environment designed to
create an effect on consumer
purchases are referred to as store
atmospherics
Can help shape the direction and
duration of consumer attention,
express the store’s character, or
elicit particular emotional
reactions
Physical Store Attributes
Store atmospherics
- Elevators
- Lighting
- Air conditioning
- Convenient and visible washrooms
- Layout
- Aisle placement and width
- Parking facilities
- Carpeting
- Architecture
Store Clientele
The type of person who shops in a
store affects consumer purchase
intention because of the tendency
to match one’s self-image with that
of the store
Some customers may be attracted
to or repelled from a store due to
their perception of the store and its
clientele
Point-of-Purchase Materials
POP displays and signs can
increase the odds of capturing
attention and stimulating purchase
- E-Theater
- Digital POP
- Computer Enhanced Merchandising
- Digital Self-Service
Point-of-Purchase Materials
Advantages of POP displays:
Inexpensive compared to other
forms of promotion
They reach people where they
buy the products
They add atmosphere to retail
stores
Consumer Logistics
The speed and ease with which
consumers move through the retail
and shopping process
- Preparation to shop
- Arriving at the store
- Entering the store
- Movement through the store
- Checkout
- Travel home and home-warehousing
- Inventory stockouts (which prompt repurchase)
Consumer Logistics
The purchase process is facilitated,
positively or negatively, by
consumer logistics
What consumers expect and demand
from a purchase situation changes
depending on what type of store
they are visiting
The Changing Retail Landscape
Consumers want to purchase
goods and services from a variety
of retailing formats
Marketers have implemented
multichannel retailing to reach
diverse segments through a variety
of formats based on their lifestyles
and shopping preferences
Location-Based Retailing
Retailers that have a physical
location for consumers to visit
Can be free-standing or housed
in a mall, strip center, central
market, or central business
district
Value-oriented retailers
- offer consumers lower prices than
other retailing forms because of the
large economies of scale generated
by high sales volume
- convenience of buying many
different types of products in one
store or have a large selection of
items
The Shopping Mall
- People visit malls less often and
spend less time than they used to
- Malls are becoming lifestyle
centers and emphasizing the
entertainment value of shopping
- Shift toward making malls become
“a place to be,” not just
“a place to shop”
Direct Marketing refers to strategies
used to reach consumers
somewhere other than a store
Direct Marketing
More consumer shopping and
buying activities are occurring in
someplace other than the store
Most in-home shoppers are active
retail shoppers who shop at home
for reasons other than deliberate
avoidance of the store or
shopping mall
Direct Marketing
Direct selling: any form of face-
to-face contact between a
salesperson and a customer
away from a fixed retail location
- door-to-door selling
- in-home parties
Direct Marketing
- door-to-door selling
- in-home parties
Direct mail ads
Direct Marketing
-door-to-door selling
-in-home parties
Direct mail ads
Direct mail catalogs
Direct Marketing
Telemarketing
- outbound telemarketing
- inbound telemarketing: use a
toll free number to place orders
directly
Direct Marketing
Telemarketing
- outbound telemarketing
- inbound telemarketing: use a
toll free number to place orders
directly
Direct response ads: ads that
require a direct response from
consumers
Purchase Behavior and E-Commerce
Purchase Behavior and E-Commerce
The technology of websites
determines what can be offered to
consumers, but only consumers
determine which technologies are
accepted
Today, more people use the
Internet for search and pre-
purchase evaluation than
purchase
Consumer Resources: What
People Spend When They
Purchase
Money
Attention Time
Concept of Time Budgets
People have “unlimited” money
budgets: have potential to earn as
much money as they want
People have limited time budgets:
maximum of 24 hours per day
How consumers allocate their
time depends on their timestyles
Concept of Time Budgets
Time and Money Budgets
Timestyles: determines how
consumers allocate their time
As people work and make more
money, leisure time decreases—
leading to an increased value of
time
Discretionary time: leisure time
when individuals feel no sense of
economic, legal, moral, social or
physical compulsion or obligation
Nondiscretionary time: Includes
physical obligations, social
obligations and moral obligations
Time-Using Goods
Time-Using Goods
Goods that require time to use, such
as television, skiing, fishing, golfing,
and playing tennis
As consumer have less leisure time,
they are often willing to spend more
money on the precious time they do
have (travel, extreme sports, and
eating out)
Time-Saving Goods
Time-Saving Goods
Goods and services that gain leisure
time by decreasing nondiscretionary
time expenditures
Housecleaning services or
dishwashers and microwave ovens
free up time to spend on leisure or
other activities
Some firms position products with
time-saving benefits
Polychronic Time Use
Polychronic time involves
combining activities simultaneously
Polychronic Time Use
Polychronic time involves
combining activities simultaneously
Trend has given rise to products:
cellular phones (talk and walk or drive)
online radio services (listen to music
while working on computers)
beepers for dental patients (wait for
appointments and shop)
prepared meals (shop for groceries and
buy completed dinner at same store)
Time Prices
Time Prices
Products have economic prices as
well as time prices
How much time it takes to shop for,
install, or use a product
Firms sometimes use time prices in
their ads (only takes 2 hours to install
or 10 seconds for quick-dry paint)
Cognitive Resources
Cognitive resources: mental
capacity available for undertaking
various information-processing
activities
Cognitive Resources
activities
Capacity: cognitive resources that
an individual has available at any
given time for processing
information
Cognitive Resources
activities
Capacity: cognitive resources that
an individual has available at any
given time for processing
information
How much of this resource do
consumers spend when shopping
or making a purchase?
Cognitive Resources
Attention: allocation of cognitive
resources
Cognitive Resources
resources
Attention consists of two
dimensions:
Cognitive Resources
resources
dimensions:
Direction: focus of attention
Intensity: the amount of capacity
focused in a particular direction
Cognitive Resources
resources
dimensions:
Direction: focus of attention
Intensity: the amount of capacity
focused in a particular direction
Gaining attention represents one of
the most formidable challengers a
marketer may face
Cognitive Resources
Shallow Attention
Many products are not important
enough to warrant consumers
investing a large amount of
cognitive resources
Consumers attempt to find
acceptable rather than optimal
solutions for their consumption
needs
Cognitive Resources
Exceeding Cognitive Capacity
Because capacity is limited, it is
possible to provide too much
information and exceed capacity
(information overload)
Consumers can become confused
and make poor choices or they may
stop processing information before
they are overloaded
Cognitive Resources
Exceeding Cognitive Capacity
The amount of attention given to a
product or specific purchase
choice depends on factors such as
involvement, situation, personality,
and other variables
Communicating with Consumers:
Integrated Marketing
Communications
Communications (IMC)
A systematic, cross-organizational
marketing communication process
that is customer-centric, data-
driven, technically anchored, and
branding effective
Communications (IMC)
IMC programs are comprehensive
IMC programs are unified
IMC programs are targeted
IMC programs have coordinated
execution of all the communications
components of the organization
IMC programs emphasize productivity
in reaching targets when selecting
communication channels and
allocating resources to media

CH 05

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CH 05

Uploaded by

Copyright:

Available Formats

Consumer Behavior

Fully Planned Purchase

Fully Planned Purchase: both the

Partially Planned Purchase: intent

Unplanned Purchase: both the

When and if purchase occurs is

Deciding where and how to purchase

You might also like