Consumer Marketing Lecture 5: The Consumption Environment

breadth

number of different categories

depth

number of different items within categories

size

number of (unique) items sold by a retailer

crowding

the subjective experience of social density - defined as the number of people per unit area

what does crowding influence?

retail outcomes like time spent, store satisfaction, shopping intentions

crowding signaling

signals popularity (informational influence) signals status (exclusivity) - less people higher status

how does crowding influence decision process?

high crowds makes consumer more visceral and more emotional. in more crowded environments, decisions are based more on affect than on cognition which influences shopping behavior

sensory marketing

marketing techniques that aim to seduce consumers by using their senses to influence their feelings and behavior

affective

general positivity optimal stimulation

cognitive

association direct behavioral effects

visual

elements such as color, brightness, lighting shape consumers' perceptions of space and products

warm colors

increase arousal, but can reduce satisfaction - for example, among customers waiting in checkout lines

auditory

physical properties (volume, pitch, rhythm, tempo), emotional tone (positive. negative), and customer liking of auditory elements

• the presence of music typically beneficial for the shopping experience -fitting with brand values is important

olfactory

smells -the right scent can positively impact customers' behavior -presence (or absence), pleasantness, fit with product -retailers use pleasant ambient scents in stores in order to create a positive experience and increase sales

olfactory imagination

even when consumer can't actually smell a product, ads can trigger imagined scent experiences through visuals

tactile

The physical feel of a product (texture, weight, softness) signals quality and appeal to consumers.

Customers are more likely to purchase a product after they have touched it, as touch increases feelings of connection and ownership.

When do people like to touch products?

they love to touch products but not when touched by others unless the person was really cool

taste

Taste elicits strong visceral reactions and remains in memory for a long time (both positive and negative)

taste perceptions and experience

can be biased by expectations--such as price, brand, packaging -> even shows up in fMRi

design

visual and spatial elements that structure and organize the environment

examples of design

store layout, signage, website design, assortment

ambient

Background sensory cues that influence your experience of the environment

examples of ambient

music, scent, lighting, temperature

social

presence and behavior of others in the environment (physical or virtual)

examples of social

staff, other shoppers, crowding, (online: likes, reviews)

trialability

the extent to which customers can try, touch, or experience products or services before purchase

examples of trialability

product sampling, fitting rooms, demos

grid layout

albert heijn

freeform layout

de Bijenkorf

race track layout

ikea