Chapter 17 Outlet Selection and Purchase

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Chapter 17Outlet Selection and Purchase
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Retailing and Outlet Selection

• Retailing includes all activities involved with
  selling to consumers (those purchasing for
  personal or household consumption).
• Retail stores
• In-home shopping
• Other non-store retailing
• Decision Sequence
• Outlet first, Brand second
• Brand first, Outlet second
• Simultaneous

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Outlet Selection

• Outlet image
• Store brands
• Retail advertising
• Spillover sales
• Outlet location and size
• Retail attraction model
• market share of a retail store f (size of the
  store, travel time to the store, and attraction
  factor for the product category)

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Retail Outlet Image

• Image refers to how a retailer is perceived by
  consumers and others.
• Atmospherics refers to the design of an
  environment via visual communications, lighting,
  colors, music, and scent to stimulate customers
  perceptual and emotional responses.
• Exterior Facilities
• General Interior
• Store Layout
• Interior Displays

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Dimensions and Componentsof Store Image

• Dimension Components(s)
• Merchandise Quality, selection, style, and price
• Service Layaway plan, sales personnel, easy
  return, credit, and delivery
• Clientele Customers
• Physical facilities Cleanliness, store layout,
  shopping ease, and attractiveness
• Convenience Location and parking
• Promotion Advertising
• Store atmosphere Congeniality, fun, excitement,
  comfort
• Institutional Store reputation
• Post-transaction Satisfaction

• The McGraw-Hill Companies, Inc., 1998

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Expenditures of Individuals Drawn to aStore by
an Advertised Item

• The McGraw-Hill Companies, Inc., 1998

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Influences on Outlet Choice

• Consumer Characteristics
• Perceived risk
• Shopping orientation
• In-Store Influences
• Point-of-purchase (POPs) displays
• Price reductions
• Store layout
• Stockout situations
• Sales personnel

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The Economic and Social Risk of Various Types of
Products

• Economic Risk
• Social
• Risk Low High
• Low Wine (home use) Personal computer
• Socks Auto repair
• Kitchen supplies Clothes washer
• Pens/pencils Insurance
• Gasoline Doctor/lawyer
• High Fashion accessories Business suits
• Hairstyles Living room furniture
• Gifts (inexpensive) Automobile
• Wine (entertaining) Snow board
• Deodorant Ski suit

• The McGraw-Hill Companies, Inc., 1998

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Supermarket Decisions Two-thirds Are Made
In-Store
Specifically planned Generally planned Substit
ute Unplanned
Type of store decision (percent)
Source The 1995 POPAI Consumer Buying Habits
Study, (Englewood, N.J. Point-of-Purchase
Advertising Institute, 1995), p.18.
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In-Store Shopper Purchase Behavior
Specifically Generally In-storeProduct P
lanned Planned Substituted Unplanned Decisi
ons Total study average 30 6
4 60 70 Hair care 23 4
5 68 77Magazines/newspapers 11 3
1 84 89Oral hygiene products 30 5
5 61 71Automobile oil 21
79 79Tobacco products 32 6
61 68Coffee 42 5 6 47 58First
aid products 7 10 83 93Cereal 33
9 6 52 67Soft drinks 40 3
5 51 60Alcoholic beverage mixers 23 6
4 68 77Fresh fruits, vegetables 67 7
1 25 33Cold remedies 28 35 19 18 7
2Toothpaste/toothbrushes 38 31 16 15 62
Antacids/laxatives 39 37 12 12 61Facial
cosmetics 40 34 11 15 60Sources 1995
POPAI Consumer Buying Habits Study (Englewood,
N.J. Point-of-Purchase Advertising Institute,
1995) 1992 POPAI/Horner
Canadian Drug Store Study (Englewood, N.J.
Point-of-Purchase Advertising Institute, 1992)

• The McGraw-Hill Companies, Inc., 1998

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The Sales Impact of Point-of-Purchase Displays
Percent Increase700
Source POPAI/KMart/Procter Gamble Study of
P-O-P Effectiveness in Mass Merchandising Stores,
(Englewood, N.J. Point-of-Purchase Advertising
Institute, 1993).
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Impact of Advertising and Point-of-Purchase
Displays on Sales of Juice and Cereal (percent
sales gain)
Purchases per 100 shoppers
Source 1987 POPAI Consumer Buying Habits Study
(Englewood, N.J. Point-of-Purchase advertising
Institute, 1987).
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Store Atmosphere and Shopper Behavior
Store Atmosphere Individual
Characteristics Response
Source Adapted from M. J. Bitner,
Servicescapes, Journal of Marketing, April 1,
1992, pp. 57-71.
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Impact of a Stockout Situation

• I. Purchase behaviorA. Purchase a substitute
  brand or product at the original store. The
  substitute brand/product may or may not replace
  the regular brand in future purchases.
• B. Delay the purchase until the brand is
  available at the original store.
• C. Forego the purchase entirely.
• D. Purchase the desired brand at a second store.
  All of the items initially desired may be
  purchased at the second store or only the
  stockout items. The second store may or may
  not replace the original store on future shopping
  trips.
• II. Verbal behaviorA. The consumer may make
  negative comments to peers about the original
  store.
• B. The consumer may make positive comments to
  peers about the substitute store.
• C. The consumer may make positive comments to
  peers about the substitute brand/product.
• III. Attitude shiftsA. The consumer may develop
  a less favorable attitude toward the original
  store.
• B. The consumer may develop a more favorable
  attitude toward the substitute store.
• C. The consumer may develop a more favorable
  attitude toward the substitute brand/product.

• The McGraw-Hill Companies, Inc., 1998

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• Terri recently went to Kroger to pick up a few
  items. Once in the store, however, she found that
  Kroger had changed the location of many items,
  and she was unable to find what she was looking
  for. Terris dissatisfaction with Kroger was due
  to
• point of purchase displays
• price of merchandise
• store layout
• a stockout situation
• sales personnel