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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. The nature of situational influences. Temporary conditions or settings

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Impact of Environment on Consumer Behaviour.

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  1. Impact of Environment on Consumer Behaviour. Situational influences

  2. CONSUMER ENVIRONMENT • Those factors • Existing independently of individual consumers and firms • That influence the exchange process

  3. The nature of situational influences • Temporary conditions or settings • That occur in the environment • At a specific time and place.

  4. 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

  5. Situations • Communication situation • Purchase situation • Usage or consumption situation

  6. 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

  7. Three types of communication situation 1.The exposure situation 2.The context of communication 3.The consumer’s mood while exposure to communication occurs

  8. 1.The exposure situation • 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

  9. 2.The context In between a sad programme In between a Happy programme Car race Cricket Comedy cinema

  10. 3.Mood of consumers • Pleasant mood –willing to listen to --- • In a hurry ----- • Waiting for viva voce ------- • Why music and dance for communication--

  11. II Purchase Situation 1.Instore environment • Décor • Sounds • Aroma • Lighting • Dress and looks of sales people • Behaviour of sales people

  12. 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

  13. II Purchase Situation • Music • Child care • Play space • Availability of Food and beverages • Escalators • Good counters • Noise • Beggars around you –how do you feel??

  14. II Purchase Situation • Refrigeration • Air-conditioned • Price tags/displays • Queues • Many intangibles ---------- • A lot more

  15. Atmosphere  • Layout • Sounds • Smells • Texture...  • Pleasure/displeasure • Arousal/Boredom  • Time in Store • Affiliation

  16. 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

  17. Unanticipated purchase situations • Emergencies • Breakdowns

  18. 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

  19. Obligatory   • Altruism  • Reciprocity • Ritual • obligation  • Love, friendship 

  20. Gift Giving situations • Functionality • Ritual-culture specific • Packing • Quality ?? • Risky??? • You as marketer of specific gift items -----

  21. 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

  22. Temporal effects • Internet shopping • More time ---

  23. Social surroundings • Presence of other individuals during the purchase • Shopping with fiancé • Shopping with friends • Shopping when an enemy is present ??

  24. 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.

  25. 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.)

  26. Momentary conditions • Momentary conditions are such things as • being tired, • feeling ill, etc. • Feeling excited

  27. 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. 

  28. Olfactory Cues  • Shoppers perceive higher quality goods in scented stores. • Odors should be consistent with store offerings. • Note- • These cues are expensive to maintain.

  29. Effects of Spatial Arrangements • Space modifies/shapes behavior • Retail store space affects consumers’ behaviour • Retail stores affect attitudes, images • Stores can create desired consumer reactions

  30. 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

  31. 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.

  32. Store Location   • influences consumers • Store Layout • I.e. the physical organization of a store

  33. Atmospherics • Design of the building • Interior space • Layout of aisles • Texture of carpets and walls • Scents • Colours • Shapes and sounds • Experienced by customers

  34. Marketing Implications  • Positioning.  Situational variables offer multiple opportunities for positioning. • Research may indicate which situations present opportunities for new products.

  35. 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

  36. Marketing Mix.  Firms may be able to present time-saving attributes as a trade-off 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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