Decision making & motivations to shop / customer experience - eCommerce & Retail Mrkt

eCommerce & Retail Mrkt

Who can be considered the consumer? (3)

• The purchaser

• The end user

• The decision maker

What does the ‘Shopkins’ example illustrate? (5)

That multiple people influence, initiate, decide, buy, and use a product — the consumer is not always one person.

Name the people & year, the ‘roles in buying decision’ were established

• People → Blackwell, Miniard, & Engel

• Year → 1990

What are the roles in the buying decision process? (5)

• Influencer → persuades others

• Initiator → begins the process

• Decider → has authority to choose

• Buyer → conducts the transaction

• User → consumes / uses the product

What are the types of consumer decisions? (4)

• Habitual

• Limited problem solving

• Extended problem solving

• Problem solving

What is habitual decision making? (with example)

Routine, low‑involvement purchases made with little thought (e.g., milk, bread).

What is limited problem solving?

Some consideration and comparison, but not extensive research.

What is extended problem solving?

High‑involvement, high‑risk decisions requiring research and evaluation

In correct order, what are the stages of the consumer decision-making process? (5)

1. Needs recognition / problem awareness

2. Information search

3. Evaluation of alternatives

4. Purchase

5. Post‑purchase evaluation

What triggers needs recognition? (3) + (example for each)

• Routine depletion (e.g., hunger, no petrol)

• Unpredictable events (e.g., washing machine breaks)

• Emotional needs (e.g., dressing up for a party)

What happens during the information search stage? (4)

• Internal and external search

• Identification of alternatives

• Application of criteria (price, value, design, risk)

• Creation of a shortlist

What is post‑purchase evaluation?

Consumers reflect on whether they made the right choice, often experiencing buyer’s remorse or FOMO.

Categories of decision-making criteria (4)

• Technical: reliability, performance, comfort, taste

• Economic: price, value for money, life‑cycle costs, residual value

• Social: status, belonging, fashion, convention

• Personal: self‑image, risk reduction, morals, emotions

Main categories of shopping motivations (2)

• Personal motivations

• Social motivations

Explain the concept of ‘role playing’ in shopping

Shopping to fulfil a perceived role (e.g., new mums buying baby clothes).

Explain the concept of ‘diversion / adventure’ in shopping

Shopping as an escape from everyday life.

Explain the concept of ‘self‑gratification’ in shopping

Shopping for happiness, relaxation, or emotional reward.

Explain the concept of ‘sensory stimulation’ in shopping

Enjoying the sensory experience of shopping (e.g., trying on clothes, browsing books).

Explain the concept of ‘idea shopping’?

Shopping to learn about new trends or technology.

Explain the concept of ‘social experience’ in shopping ?

Shopping to be around others (e.g., malls, markets).

Explain the concept of ‘communicating with the group’ in shopping

Shopping to interact with like‑minded people or friends.

Explain the concept of ‘status and authority’ in shopping

Shopping to feel important or be the centre of attention.

How can retailers design experiences that maximise role playing? (3)

• Offer products that fit life roles

• Provide personalised service

• Create themed sections (e.g., baby zones)

How can retailers maximise diversion/adventure (3)

• Exciting layouts

• Treasure‑hunt style merchandising

• Novelty displays

How can retailers maximise self‑gratification?

• Relaxing environments

• Treat‑yourself promotions

• Premium service

How can retailers maximise sensory stimulation?

• Try‑on areas

• Product demos

• Interactive displays

How can retailers maximise idea shopping? (3)

• Tech demos

• Trend zones

• Staff expertise

How can retailers maximise social experience? (3)

• Seating areas

• Cafés

• Social events

How can retailers maximise communicating with the group?

• Community events

• Workshops

• Social media integration

How can retailers maximise status and authority? (3)

• VIP service

• Personal shoppers

• Premium product areas

What are key motivations for online shopping? (8)

• Fun of bidding/haggling

• Role enactment

• Keeping up with trends

• Interacting with other online shoppers

• Website stimulation

• Personalised service

• 24/7 access

• Avoiding crowds

What is the first lesson about customer experience? (3)

Customers always have an experience —

• whether good,

• Bad, or

• Neutral.

How is ‘customer value’ defined?

Customer value = benefits received minus perceived sacrifices.

Examples of benefits and sacrifices? (@3)

• Benefits: product benefits, in‑store experience, good advice

• Sacrifices: money, time, bad advice

When must retailers compete on service?

When neither they nor competitors can control the product or pricing.

Difference between ‘customer service’ and ‘customer experience’ (2)

• Customer service = staff interactions and support.

• Customer experience = the entire journey, from awareness to long after purchase.

Why should retailers take a “holistic approach” to customer experience?

Because customers interact with the retailer across many touchpoints, not just in‑store.

What determines the appropriate level of customer service?

The retailer’s positioning.

Why won’t Aldi offer the same service level as SuperValu? (2)

• Too expensive for Aldi

• Sends the wrong message (Aldi must look and feel cheap)

What is the minimum level of service required? (2)

• Health and safety

• Basic expectations customers will not sacrifice

What does “Less be More” mean in customer service?

Some transactions work better with low‑touch service (e.g., self‑service tills, online shopping).

Why are retailers moving toward low‑touch service? (3)

• Customers are familiar with technology

• It reduces costs

• It increases convenience

What are pros and cons of automation for retailers?

• Pros

→ Lower labour cost, faster transactions, efficiency

• Cons

→ Upfront investment, less human interaction, potential customer frustration

What are pros and cons of automation for customers?

• Pros

→ Faster service, convenience, shorter queues

• Cons

→ Less personal help, tech issues, exclusion of non-tech users

Should customers be able to choose their service level ? - (explain)

• Yes

→ Different customers value different levels of service, and some may pay for premium service.

Where is ‘Tiered service’ common? (4)

• Travel

• Hotels

• Sports grounds

• Loyalty programmes.

Why does customer service matter? (4)

It influences

• Satisfaction

• Loyalty

• Brand perception, and

• Long‑term sales.

What is the SERVQUAL model used for?

Assessing service quality in retail and other service sectors.

What are the SERVQUAL dimensions? (5)

1. Reliability – consistent delivery

2. Responsiveness – prompt service

3. Assurance – trust and confidence

4. Empathy – personalised attention

5. Tangibles – physical appearance of store, layout, materials

What does Cognito (2012) say is required for good customer service? (5)

• Long‑term commitment from management

• Continuous feedback

• Recruiting the right staff

• Empowering staff

• Avoiding rigid scripts

What methods help gather customer feedback? (4)

• Mystery shoppers

• Focus groups

• Complaints

• Online feedback

Why should staff be empowered?

To make decisions that improve customer experience and avoid robotic scripted interactions.

What is the GAP ACT Framework?

A model for improving customer service performance (applied in the slides to a mobile phone store).

What roles do employees play in customer experience? (7)

• Providing information

• Demonstrating product knowledge

• Building trust

• Cross‑selling

• Up‑selling

• Handling complaints

• Managing returns and warranties

What does Cognito (2012) recommend for staff rewards? (4)

• Relevant, focused rewards

• Decisions on team vs individual rewards

• Longitudinal measurement

• Avoid exaggeration

Why is Disney included as an example for customer service?

Its a benchmark for world‑class customer service, staff empowerment, and consistent experience delivery.