Download Impact of Environment on Consumer Behaviour.

Impact of Environment
on Consumer Behaviour.
Situational influences
CONSUMER ENVIRONMENT
Those factors
 Existing independently of individual
consumers and firms
 That influence the exchange process
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The nature of situational influences
Temporary conditions or settings
 That occur in the environment
 At a specific time and place.
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Definition
All those factors particular to a time and
place that do not follow from a knowledge
of personal and stimulus attributes and
that have a demonstrable and systematic
effect on current behavior.
 Russell W Belk
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Situations
1.
2.
3.
Communication situation
Purchase situation
Usage or consumption situation
Communication situation
Setting in which consumers are exposed
to communication
 Will influence ?
 How much we notice
 How much we understand
 How much we value
 How much we retain
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Three types of communication
situation
1.The exposure situation
2.The context of communication
3.The consumer’s mood while exposure to
communication occurs
1.The exposure situation
1.
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5.
6.
Reads a magazine advertisement --------Views a TV commercial ALONE ? --------Sees the salesman while getting out to
work--Hears a radio commercial while eager to
listen to election results------------In between a serial----Watching stock market moves
2.The context
In between a sad programme
In between a Happy programme
Car race
Cricket
Comedy cinema
3.Mood of consumers
Pleasant mood –willing to listen to -- In a hurry ---- Waiting for viva voce ------ Why music and dance for communication-
II Purchase Situation
1.Instore environment
 Décor
 Sounds
 Aroma
 Lighting
 Dress and looks of sales people
 Behaviour of sales people
II Purchase Situation
Type of people who visit the store
 Product availability
 Shelf position
 Price deals
 Displays
 Physical space to move around
 Rush (crowding) or otherwise
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II Purchase Situation
Music
 Child care
 Play space
 Availability of Food and beverages
 Escalators
 Good counters
 Noise
 Beggars around you –how do you feel??
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II Purchase Situation
Refrigeration
 Air-conditioned
 Price tags/displays
 Queues
 Many intangibles ---------
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A lot more
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Atmosphere
Layout
Sounds
Smells
Texture...
Pleasure/displeasure
Arousal/Boredom
Time in Store
Affiliation
III Usage or consumption situation
Lunch
 A guest comes home
 Weekend trip
 In the college
 Treat for friends
 Wedding
 Onam
 X’mas
 Before exams
 After a funeral
Unanticipated purchase situations
Emergencies
 Breakdowns
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Gift Giving situations
Range of products for gifts
 Involvement
 Communicate to the receiver - what ?
 Symbolic meaning
 Money value
 Esteem measure
 Status of giver
 Giver’s impression of receiver’s personality
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Obligatory
 Altruism
 Reciprocity
 Ritual
 obligation
 Love, friendship
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Gift Giving situations
Functionality
 Ritual-culture specific
 Packing
 Quality ??
 Risky???
 You as marketer of specific gift items ----
TIME AND TEMPORAL
PERSPECTIVE
Deal with the effect of time on consumer
behavior
 Less time –shorter ,lesser information
search
 Buys with available information
 Less than optimal purchase
 Depend on others
 Brand loyalty to avoid risk
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Temporal effects
Internet shopping
 More time --
Social surroundings
Presence of other individuals during the
purchase
 Shopping with fiancé
 Shopping with friends
 Shopping when an enemy is present ??
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ANTECEDENT STATES
Antecedent States . . .
 are the temporary physiological and mood
states that a consumer brings to a
consumption situation.
 Physiological State: Hunger.
 Mood State: Happy feelings.
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Momentary moods
Momentary moods are
 such as temporary states of depression or
high excitement.
 (Moods are transient feeling states that
are not tied to a specific event or object.)
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Momentary conditions
Momentary conditions are such things as
 being tired,
 feeling ill, etc.
 Feeling excited
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Antecedent States . . .
 Can lead to problem recognition.
 Can change the “feeling” component of
hierarchy of effects
 Mood states influence behavior,
e.g. shopping to alleviate loneliness.
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Olfactory Cues
Shoppers perceive higher quality goods in
scented stores.
 Odors should be consistent with store
offerings.
 Note These cues are expensive to maintain.
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Effects of Spatial Arrangements
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Space modifies/shapes behavior
 Retail store space affects
consumers’ behaviour
 Retail stores affect attitudes, images
 Stores can create desired consumer
reactions
The Effects of Crowding
on Consumers
Density –
 how closely packed people are
 (i.e., the physical arrangements of people
in a space).
 High density in railway station –
 Bank ??
 In “fun” situations –better pleasure
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Crowding
The unpleasant feelings that people
experience
 When they perceive that densities are too
high
 Feel that their control of the situation has
been reduced to unacceptable levels.
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Store Location
influences consumers
 Store Layout
 I.e. the physical organization of a store
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Atmospherics
Design of the building
 Interior space
 Layout of aisles
 Texture of carpets and walls
 Scents
 Colours
 Shapes and sounds
 Experienced by customers
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Marketing Implications
 Positioning.
Situational
variables offer multiple
opportunities for positioning.
 Research
may indicate which
situations present opportunities
for new products.
Many Purchases Are Made to Buy
Time
 The “time-buying consumer” is a
consumer who engages in buying time
through products
 Time-saving qualities are a key promotional
idea
 Time can act as a product attribute
Marketing Mix. Firms may be able to
present time-saving attributes as a tradeoff for a higher price.
 Segmentation. An increase in the female
work force presents opportunities to
market to the segment of males doing
more of their own shopping.
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