Impact of Environment on Consumer Behaviour.

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.