Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
CHAPTER 17
OUTLET SELECTION AND PURCHASE
LEARNING OBJECTIVES
LO1: Describe how retailing is evolving
LO2: Discuss the Internet and mobile as part of multi- and omni-channel shopping
LO3: Explain the retail and consumer attributes that affect outlet selection
LO4: Summarize the in-store and online influences on brand choice
LO5: Understand how purchase plays a role in the shopping process
SUMMARY
LO1: Describe how retailing is evolving
Retail outlet refers to any source of products or services for consumers. Retailing has moved well beyond
traditional physical stores and catalogs to include the Internet, interactive TV ads, and mobile shopping
LO2: Discuss the Internet and mobile as part of multi- and omni-channel shopping
Internet retailing and other forms of in-home retailing including catalogs are increasingly important retail
outlets. While store-based retailing continues to dominate in terms of overall sales, consumers
LO3: Explain the retail and consumer attributes that affect outlet selection
The decision process used by consumers to select a retail outlet is the same as the process described for
selecting a brand. The only difference is in the nature of the evaluative criteria used. Retail outlet image is
LO4: Summarize the in-store and online influences on brand choice
While in a retail outlet, consumers often purchase a brand or product that differs from their plans before
entering. Such purchases are referred to as unplanned purchases. Most of these decisions are the result of
LO5: Understand how purchase plays a role in the shopping process
Once the outlet and brand have been selected, the consumer must acquire the rights to the item. This often
LECTURE TIPS AND AIDS
1) Have the students write down and rank order the characteristics (evaluative criteria) they look for in a
2) Repeat Question 1 as they think the following people would respond: (a) a middle-aged doctor, (b) an
unemployed mechanic, (c) a retired school teacher. Use their responses as a basis for additional
discussion of individual variation in desired outlet characteristics.
3) Have each student describe a recent stock-out experience and his/her total response to it.
5) Ask students to describe their shopping habits involving the use of the Internet and mobile apps.
Generate a list of functionalities (evaluative criteria) that students want from the Internet and mobile
apps when it comes to shopping.
REVIEW QUESTIONS
1) The consumer faces the problems of what to buy and where to buy it. How do these two types of
decisions differ?
In any purchase decision, a consumer faces two very basic decisions: which brand to buy and where
2) How is the retail environment changing?
Retail outlet refers to any source of products or services for consumers. Retailing has moved well
3) Describe Internet retailing.
Internet retailing is selling products and services through the Internet directly to consumers.
4) What is multi-channel shopping and what implications does it hold for retailer strategy?
Multi-channel shoppers are those who browse and/or purchase in more than one channel. Research
multi-channel retailers should (re)design various outlets in light of multi-channel shopping.
5) What is omni-channel shopping and what implications does it hold for retailer strategy?
Mobile phones and apps have led to a form of shopping and shopper termed omni-channel. Omni-
cross-channel shopping.
6) What is meant by online privacy concern? Why is it a particularly important issue for online
shoppers?
Consumers are concerned anytime they must provide personal information to strangers but these
7) Describe the six segments of shoppers in relation to the Internet.
• Upscale Clicks and Bricks (17 percent) are 68 percent more likely than average to have bought
online in past 12 months. Higher income and middle age, this segment is most likely to buy
online, also buy in-store on par with average consumer. Heavy online research prior to buying.
8) What is a store image and what are its dimensions and components?
Store image is the overall perception of a retail outlet that is formed on the basis of impressions of
9) Describe Internet retailer image and compare/contrast it with store image.
Internet retailer image is the online counterpart to store image – that is “the target market’s perception
10) What is a store brand? How do retailers use store brands?
A store brand is a brand with the same name as the store or a special name developed by the store. At
the extreme, the store or outlet is the brand. Patagonia, Victoria’s Secret, and Body Shop International
11) What key decisions do retailers make with respect to retail price advertising?
Retail price advertising attracts people to stores, generates sales of the advertised items, and increases
sales of other, unadvertised items in the store. In addition, both price and nonprice advertising affect
the store’s image.
12) What is meant by the term spillover sales? Why is it important?
Sales of additional items to customers who came to purchase an advertised item are referred to as
sales of the advertised item.
13) How does the size and distance to a retail outlet affect store selection and purchase behavior?
The larger a retail store or shopping center, the greater the selection and opportunity to fulfill needs.
14) How is store choice affected by the perceived risk of a purchase?
Perceived risk in a purchase situation produces a tendency to shop in established, well-known stores.
15) What is meant by social risk? How does it differ from economic risk?
16) What is a shopping orientation?
It is the way a person approaches shopping in general or for a particular type of product. It includes
the person’s activities, motivations, and attitudes.
17) Describe five motivation-based shopping orientations across retail types.
• Apathetic Shoppers (16 percent of mall shoppers) – have no particular shopping motive and are
“indifferent toward shopping.”
• Enthusiast Shoppers (22 percent of mall shoppers) – enjoy shopping and are motivated by many
18) What is meant by an in-store purchase decision? Why is it important?
An in-store purchase decision occurs when an important part of the decision is made on the basis of
19) What is meant by an impulse purchase? Why is it important?
This type of purchase occurs when a consumer sees a product in the store and purchases it with little
20) Once in a particular store, what in-store and/or online characteristics can influence brand and product
choice? Give an example of each.
a. Point-of-purchase displays can attract attention to a brand and produce a greater likelihood of
purchasing that brand. For example, an end-of-aisle display featuring a particular brand of
snack food can be expected to increase purchases of this brand over normal shelf sales.
21) Describe the impact of point-of-purchase displays on retail sales.
Although the sales impact of displays varies widely by product type and location and between brands
22) Describe the impact of price reductions and deals on retail sales.
Price reductions and promotional deals (coupons, multiple-item discounts, and gifts) are generally
23) What is meant by store atmosphere? Online atmosphere? How do they affect consumer behavior?
The store’s atmosphere or internal environment affects the shoppers’ mood and willingness to visit
24) What is a servicescape?
Atmosphere is referred to as servicescape when describing a service business such as a hospital, bank,
or restaurant.
25) Why do consumers planning to make a purchase at an online outlet frequently fail to do so?
26) What are frequent problems consumers encounter while shopping online?
A number of factors lead to shopping cart abandonment and are seen as consumer problems
with the online shopping/buying experience. These are listed below.
27) What can happen in response to a stockout?
Stockouts, the store being temporarily out of a particular brand, can obviously affect a consumer
store, or (d) forego the purchase altogether. They can also produce negative attitudes and/or word-of-
Discussion Questions
28) Name two mobile apps that affect the choice of brands in the store?
Answers will vary and evolve as the apps evolve and improve. Apps currently include price
comparisons and coupons which clearly can influence which brands are purchased.
29) Does the image of a retail outlet affect the image of the brands it carries? Do the brands carried affect
the image of the retail outlet?
30) What challenges face multi-channel retailers in managing their image across channel?
Managing one image in one channel is difficult enough. Managing across channels is a whole other
likely one of the major issues.
31) Respond to the questions in Consumer Insight 17-1.
Students should be encouraged to list additional elements not covered in the insight that could be used
to turn browsers to buyers.
Students will have varying opinions regarding the need for enhanced social elements and this will
32) How are social and economic risks associated with the following products likely to affect the outlet
choice behavior of consumers? How would the perception of these risks differ by consumer?
Situation?
a) Sports car
33) Describe an appropriate strategy for an online store such as Target for each of the motivation-based
shopping orientations described in the text.
34) Describe an appropriate strategy for an online store such as J. Crew for each of the five shopper
segments related to Internet shopping described in the text.
See the answer for question #33.
35) Suggest other methods for developing motivation-based shopping orientations.
One study used projective techniques to ascertain the ways college students approach shopping. It
had consumers “[t]hink about an animal that best describes you as a shopper... [and] explain what it is
36) How should retailer strategies to encourage unplanned purchases differ based on the type of
unplanned purchase generally associated with the product category?
37) What in-store characteristics could retailers use to enhance the probability of purchase among
individuals who visit a store? Describe each factor in terms of how it should be used, and describe its
intended effect on the consumer for the following products:
a) Perfume
b) Ice cream
38) What site characteristics could online retailers use to enhance the probability of purchase among
individuals who visit their sites? Describe each factor in terms of how it should be used, and describe
its intended effect on the consumer for the following products:
a) Dorm furniture from Target.com
b) Electronics from Amazon.com
39) What type of store atmosphere is most appropriate for each of the following retailer types? Why?
a) Bookstore serving college students
40) Repeat Question 39 (except for c and g) for online retailers.
Have the students focus on the interface the firms provide for consumers. They can use the
dimensions detailed in the in-text table relating to online retailer image.
41) How would you respond to a stockout of your preferred brand (or model) of the following? What
factors other than product category would influence your response?
a) SUV
b) Cereal
