Situational Influence
Include all the temporary, external conditions or circumstances that influence a consumer’s purchasing decisions and actions at a specific time and place.
Consumers often behave very differently depending on situation.
5 situational dimensions
- Physical surroundings
- Social surroundings
- Temporal perspectives (time)
- Task definition
- Antecedent states (internal or emotional conditions)
Store Atmosphere
is the sum of all the physical
features of a retail environment.
Atmosphere known as servicescape
Atmospherics
influences consumer judgments of the
quality of the store and the store’s image.
Purchase Involvement
the level of concern for, or interest in,
the purchase process,
triggered by need to consider a
particular purchase, and so
it is a temporary state influenced by
the interaction of individual, product,
and situational characteristics.
Types of decision making
- Nominal Decision Making
• Brand Loyal Purchases
• Repeat Purchases - Limited Decision Making
- Extended Decision Making
Nominal Decision Making
Nominal decisions occur when
there is very low involvement with
the purchase. A completely nominal decision
does not even include consideration of the “do not
purchase” alternative.
Limited Decision Making
Involves internal and limited external search, few alternatives, simple decision rules on a
few attributes, and little postpurchase evaluation
Involves recognizing a problem for
which there are several possible
solutions.
Extended decision making
involves extensive internal and
external search followed by a complex evaluation of multiple
alternatives.
It is a response to the high level of
purchase involvement.
Internal Search
- if a satisfactory solution is known
- the characteristics of potential
solutions, and - ways to compare the possible
solutions.
Part of the Evoked set
External Search
If internal search doesn’t solve the problem,
the search process focuses on external
information:
• independent sources
• personal sources
• market-based information
• product experience
Five primary sources
- Memory of past searches, personal experiences, and
low-involvement learning. - Personal sources, such as friends, family, and others.
- Independent sources, such as magazines, consumer groups, social media influencers, and government agencies.
- Marketing sources, such as sales personnel, company websites and social media, and advertising.
- Experiential sources, such as inspection or product trial.
Driving Information to Consumers
Banner ads
Permission-based e-mail
Social media
Rational Choice Theory 1
Assumption: Consumers seek one optimal solution to a problem and choose on that basis.
• Reality: Consumers have all sorts of “metagoals” that are different from this.
Rational Choice Theory 2
Assumption: Consumers have the skill and motivation to find the optimal solution.
• Reality: Consumers often lack both the skill or motivation to do so.
Rational Choice Theory 3
Assumption: The optimal solution does not change as a function of situational factors such as time pressure, task definition, or competitive context.
• Reality: Context effects are common.
Direct Evaluative Criteria
Methods include asking consumers what criteria
they use in a particular purchase.
Indirect Evaluative Criteria
techniques assume consumers will not or cannot
state their evaluative criteria.
Projective tecniques
allow the respondent to
indicate the criteria someone else might use.
Perceptual Mapping
researcher uses judgment to
determine dimensions underlying consumer
evaluations of brand similarity
Evaluative Criteria
Various dimensions, features, or
benefits consumers look for in response to a specific
problem.
Can differ in: type, number, and importance
Barriers to Online Shopping
I buy it in store instead
Prefer to see it in person
Don’t want to pay shipping fees
Don’t want to wait on delivery
Prices are too high online
Prefer to talk to in person sales guy
Inadequate product description
Poor product images
Omni-Channel Retailing
Because consumers access many channels often
simultaneously, most retailers are engaging in multi- or
omni-channel marketing to reach consumers.
Showrooming
The practice of examining merchandise in a traditional brick-and-mortar retail store or other offline setting, and then buying it online, sometimes at a lower price
