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Chapter 3,Customer Buying Behavior,4-2,Jennifer Sanchez, at San Francisco State University, is beginning to interview for jobs. For the first interviews on campus, Jennifer had planned to wear the blue suit her parents bought her three years ago. But looking at her suit, she realizes that its not very stylish and that the jacket is beginning to show signs of wear. Wanting to make a good first impression during her interview, she decides to buy a new suit.,Illustration of Buying Process,Andrew Ward/Life File/Getty Images,4-3,Illustration (Continued),Jennifer surfs the Internet for tips on dressing for interviews ( and ) and looks through some catalogs to see the styles being offered. But she decides to go to retail store so she can try it on and have it for her first interview next week. She likes to shop at Abercrombie and Fitch and American Eagle Outfitter, but neither sells business suits. She remembers an ad in the San Francisco Chronicle for womens suits at Macys. She decides to go to Macys in the mall close to her apartment and asks her friend Brenda to come along. Jennifer values Brendas opinion, because Brenda is interested in fashion.,4-4,Illustration (Continued),Walking through the store, they see some DKNY suits. Jennifer looks at them briefly and decides theyre too expensive for her budget and too stylish. She wants to interview with banks and thinks she needs a more conservative suit.,John A. Rizzo/Getty Images,4-5,Illustration (Continued),Jennifer and Brenda are approached by a salesperson in the career womens department. After asking Jennifer what type of suit she wants and her size, the salesperson shows her three suits. Jennifer asks Brenda what she thinks about the suits and then selects one to try on. When Jennifer comes out of the dressing room, she feels that the shoulder pads in the suit make her look too heavy, but Brenda and the salesperson think the suit is attractive. Jennifer decides to buy the suit after another customer in the store tells her she looks very professional in the suit.,4-6,Illustration (Continued),Jennifer doesnt have a Macys charge card, so she asks if she can pay with a personal check. The salesperson says yes, but the store also takes VISA and MasterCard. Jennifer decides to pay with her VISA card. As the salesperson walks with Jennifer and Brenda to the cash register, they pass a display of scarves. The salesperson stops, picks up a scarf, and shows Jennifer how well the scarf complements the suit. Jennifer decides to buy the scarf also.,4-7,Stages in the Buying Process,4-8,Types of Needs,Utilitarian Needs satisfied when purchases accomplish a specific task. Shopping needs to be easy and effortless like Sams or a grocery store.Hedonic needs satisfied when purchases accomplish a need for entertainment, emotional and recreational experience as in department stores or specialty stores.,4-9,StimulationSocial experienceLearn new trends and fashionsSatisfy need for power and statusSelf-rewardsAdventure,Satisfied Hedonic Needs,(c) image100/PunchStock,4-10,Stimulating Need Recognition,Suggestions by Sales AssociatesAdvertising and Direct MailVisual Merchandise in storeSpecial Events in the Store SignageDisplays,Stockbyte/Punchstock Images,4-11,Factors Affecting Amount of Information Search,Nature of the ProductComplexityCostCharacteristics of CustomerPast experiencePerceived riskTime pressureAspects of the MarketNumber of alternative brands,4-12,Sources of Information,ExternalConsumer reportsAdvertisingWord of mouth,Internal Past experiences Memory,Digital Vision / Getty Images,The McGraw-Hill Companies, Inc./John Flournoy, photographer,4-13,How Can Retailers Limit the Information Search?,Information from sales associatesProvide an assortment of servicesProvide good assortmentsEveryday low pricingCredit,Royalty-Free/CORBIS,4-14,(c) image100/PunchStock,Providing Information on InternetBuying a Car On-line,4-15,Characteristics About Food Retailers,4-16,Evaluation of Retailers,4-17,Info Sanchez Used in Buying Suit,4-18,Information Needed to Use Multi-Attribute Model,Alternative retailers consumers can considerCharacteristic/Benefits Sought in Making Store and Merchandise ChoicesRatings of Alternative Performance on CriteriaImportance weights that consumers attach to the merchandise,4-19,Getting into the Consideration Set,Increase Performance Beliefs of Your StoreDecrease Performance Beliefs About CompetitorIncrease Importance Weight of Attributes on which You Have an AdvantageAdd a New Benefit on which You Excel,4-20,Purchasing Merchandise or Services,The high-rated item may not be available in the store.How can a retailer increase the chances that customers will convert their merchandise evaluations into purchases?,Customers do not always purchase a brand with the highest overall evaluation.,The McGraw-Hill Companies, Inc./Jill Braaten, photographer,4-21,Converting Merchandise or Services Evaluations into Purchases,Dont stock out of popular merchandiseOffer liberal return policies, money back guarantees, and refunds if same merchandise is available at lower prices from another retailerOffer creditMake purchases easy by having convenient checkoutReduce waiting times at checkout,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,4-22,Types of Purchase Decisions,Extended Problem Solving-High financial or Social RiskLimited Problem Solving-Some Prior Buying ExperienceHabitual Decision Making-Store Brand, Loyalty,Adam Crowley/Getty Images,Janis Christie/Getty Images,Greg Kuchik/Getty Images,4-23,Extended Problem Solving,Consumers devote time and effort analyzing alternativesFinancial risks purchasing expensive products or servicesPhysical risks purchases that will affect consumers health and safetySocial risks consumers will believe product will affect how others view them,4-24,What Retailers Need to do for Customers Engaged in Extended Problem Solving,Provide a Lot Information -Use Salespeople rather than advertising to communication with customersReduce the Risks -Offer Guarantees -Return Privileges, Royalty-Free/CORBIS,4-25,Limited Problem Solving,Customers engage in this when they have had prior experience with products or servicesCustomers rely more on personal knowledgeMajority of customer decisions involve limited problem solving,(c) Brand X Pictures/PunchStock,Purchase decisions process involving moderate amount of effort and time,4-26,It dependsIf the Customer Is Coming to You, Provide a Positive Experience and Create LoyaltyMake Sure Customer is SatisfiedProvide Good Service, Assortments, valueOffer Rewards to Convert to Loyal CustomerIf the Customer Goes to Your Competitors Store, Change BehaviorOffer More Convenient Locations, Better Service and Assortments,What do Retailers Need to do for Customers Engaged in Limited Problem Solving?,4-27,Encouraging Impulse Buying,Have Salespeople Suggest Add-onsHave Complementary Merchandise Displayed Near Product of InterestUse Signage in Aisle or Special DisplaysPut Merchandise Where Customers Are Waiting,PhotoLink/Getty Images,4-28,Habitual Problem Solving,For purchases that arent important to the consumerFor merchandise consumers have purchased in the pastFor consumers loyal to brands or a store,Purchase decision process involving little or no conscious effort,Royalty-Free/CORBIS,4-29,Customer Loyalty,Brand Loyalty Committed to a Specific BrandReluctant to Switch to a Different BrandMay Switch Retailers to Buy BrandStore LoyaltyCommitted to a Specific RetailerReluctant to Switch Retailers,4-30,What Retailers Need to do for Customers to Engage in Habitual Decision Making,If the customer habitually comes to you, reinforce behaviorMake sure merchandise in stockProvide good serviceOffer rewards to loyal customerIf the customer goes to your competitors store, break the habitOffer special promotions,4-31,Factors Influencing the Buying Decision Process,4-32,Family Influences Buying Decisions,Purchases are for entire famil
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