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Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
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Types of needs
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■Utilitarian Needs
■Hedonic needs
|
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■Utilitarian Needs
–
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Satisfied when purchases accomplish a specific task. Shopping needs to be easy, and effortless
like Sam’s or a grocery store.
.
|
|
■Hedonic needs –
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Satisfied when purchases accomplish a need for entertainment, emotional, and
recreational experience as in department stores or specialty stores
|
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■Stimulation
nEx: Background music, visual displays, scents
■Social experience
nEx: Mixed-use developments, lifestyle centers
■Learn new trends and fashions
nEx: The Body Shop – learn how can live an environmentally friendly
lifestyle
■Satisfy need for power and status
nEx: Canyon Ranch – upscale health resorts
■Self-rewards
nEx: personalized makeovers
■Adventure
nTreasure hunting for bargains
|
Hedonic
Needs that Retailers can Satisfy
|
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Conflicting Needs
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■Ex:
Hedonic needs (wearing a DKNY suit to enhance self-image) conflict with her
budget, and her utilitarian need to get a job.
■Customers
make trade-offs between their conflicting needs
■Cross
shopping
|
|
??
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Cross shopping
|
|
Suggestions by Sales Associates
Advertising and Direct Mail
Visual Merchandise in store
Special Events in the Store
Signage
Displays
Free food sample
|
Simulation need recognition
|
|
■Amount
of Information Search Depends on
|
The value from searching versus the cost of searching
|
|
■
nProduct
Characteristics
•Complexity
•Cost
nCustomer
Characteristics
•Past
experience
•Perceived
risk
•Time
pressure
nMarket
Characteristics
•Number
of alternative brands
|
Factors Affecting Amount of Information Search
|
|
Sources of Information
|
External
Internal
|
|
Consumer reports
Advertising
Word of mouth
|
External
|
|
Past experiences
Memory
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Internal
|
|
■Information
from sales associates
■Provide
an assortment of services
■Provide
good assortments
■Everyday
low pricing
■Credit
|
How
Can Retailers Limit the Information Search?
|
|
Retailers
encourage customers
to |
Spend time
|
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■The more time customers spend shopping,
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The more they will buy.
nCustomers who spend 40 mins in a store are more than twice as likely to buy than someone who
spends 10 mins. Also, they typically buy 2x as many items.
|
