CHAPTER 17

Outlet
Selection and
Purchase

Copyright © 2020 by McGraw-Hill Education. All rights reserved.

PART IV: CONSUMER DECISION PROCESS

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 Learning Objectives

Describe how retailing is evolving

Discuss the relationship among retail outlets as part of

omni-channel shopping

Explain the retail and consumer attributes that affect

outlet selection

Summarize the in-store and online influences on brand

choice

Understand how purchase plays a role in the shopping

process
Applications in Consumer Behavior

This lively® mobile ad

shows how marketers
often use advertising
to create brand
demand and to direct
consumers to
appropriate outlets. .

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 The Evolving Retail Scene
 Online Retailing
• Barriers to Online Shopping

 Mobile Retailing

 Store-based Retailing

 Omni-Channel Retailing for the Omni-Channel

Shopper
• Omni-Channel Shopping Behaviors
• The Omni-Channel Retailing Strategy

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 The Evolving Retail Scene
Online Retailing
Online retailing is a major retail channel and one aspect of
in-home shopping:

Information in table based on “Internet Users and 2017 Population in North America,” Internet World Stats, June
2017, www.internetworldstats.com, accessed July 9, 2018; Statista, “E-Commerce Share of Total Retail Sales in
United States from 2013–2021,” 2018, www.statista.com, accessed July 9, 2018; U.S. Census Bureau, “Quarterly
Retail E-Commerce Sales,” May 17, 2018.

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The Evolving Retail Scene
Reasons Consumers Shop Online:

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The Evolving Retail Scene
Barriers to Online Shopping

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The Evolving Retail Scene
Mobile Retailing
The Evolving Retail Scene
Mobile Retailing
 The Evolving Retail Scene
Mobile Retailing
Emerging trends:

 Push-Based Apps

 In-Store Beacons and Mobile Ads

Shutterstock/ImYanis
 One-Click Mobile Payments

 Augmented Reality (AR)

 Artificial Intelligence (AI)

Shutterstock/supparsorn
The Evolving Retail Scene
Store-based Retailing

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 The Evolving Retail Scene
Store-based Retailing
In-store shopping is perceived as neither fun nor efficient
by many. Retailers are trying to enhance the experiential
component through layout, music, personal shoppers, etc.

Stores can add value

by providing a fun
shopping
environment

© Lars A. Niki

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 The Evolving Retail Scene
Omni-Channel Retailing for the Omni-Channel
Shopper
Because consumers access many channels--often
simultaneiously, most retailers are engaging in multi- or
omni-channel marketing to reach consumers.
Omni-channel shoppers are consumers who browse
and/or purchase using multiple channels.

Anna Zielinska/Getty Images

YuppieChef Opens Brick-and-Mortar as Part of Its

Omni-Channel Experience
YouTube Spotlight
Ingram Publishing 17-14
The Evolving Retail Scene
Omni-Channel Shopping Behaviors

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 The Evolving Retail Scene
Omni-Channel Retail Strategy
 Design the physical store to look like a “showroom”

 Educate employees to be more effective sales

associates

 Provide in-aisle checkout service

 Provide price comparison in-store

Sam’s Club Implemented Scan-and-Go App as Part of Its

Omni-Channel Retail Strategy
YouTube Spotlight
Ingram Publishing 17-16
Attributes Affecting Retail Outlet Selection
Retail outlet selection involves a comparison of the
alternative outlets on consumer’s evaluative criteria:
 Outlet Image

 Retailer Brands

 Retail Advertising

 Outlet Location and Size

McGraw-Hill Education

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Attributes Affecting Retail Outlet Selection
Outlet Image
Bricks-and-Mortar Image

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Attributes Affecting Retail Outlet Selection
Outlet Image
Online Image

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Attributes Affecting Retail Outlet Selection
Retailer Brands
Store brands are closely related to store image, and at the
extreme, the store or outlet is the brand.
Traditionally, retailers carried only manufacturers' brands,
and only a few, such as Sears, developed their own brands.
Increasingly retailers such as Walmart and Target are
developing and promoting high-quality brands with either the
store’s name or an independent name.
The key to success of store brands--high quality at a
reasonable price.

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Attributes Affecting Retail Outlet Selection
Retail Advertising
Expenditure of Individuals Drawn to a Store by an Advertised Item

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Attributes Affecting Retail Outlet Selection
Outlet Location and Size
Location and size play an important role in store choice.
All else equal, consumers generally select the closest store.
Outlet size is also important. Generally, customers prefer
larger outlets over smaller outlets.
The retail attraction model, or the retail gravitation model,
is used to calculate the level of store attraction based on
store size and distance from the consumer.

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Consumer Characteristics and Outlet
Choice
Two consumer characteristics that are particularly
relevant to store choice:

1. Perceived Risk

2. Shopping Orientation

© Floresco Productions/age fotostock

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Consumer Characteristics and Outlet
Choice
Shopping Orientation Segments

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In-Store and Online Influences on Brand
Choices
Supermarket Decisions: Two-Thirds Are Made In-Store

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 In-Store and Online Influences on Brand
Choices
Strategies used by manufacturers and retailers to influence
in-store and online decisions:
1. Point-Of-Purchase Materials
2. Price Reductions and Promotional Deals
3. Outlet Atmosphere
4. Stockouts
5. Website Functioning and Requirements
6. Mobile and Mobile Apps
7. Sales Personnel

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In-Store and Online Influences on Brand
Choices
Point-Of-Purchase Materials
Shelf-Based Point-of-Purchase Materials

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In-Store and Online Influences on Brand
Choices
Price Reductions and Promotional Deals
Price reductions and promotional deals
• coupons

• multiple-item discounts, and

• gifts
Getty Images

are generally accompanied by the use of some point-of-

purchase materials.

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In-Store and Online Influences on Brand
Choices
Outlet Atmosphere

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 In-Store and Online Influences on Brand
Choices
Stockouts
Stockouts affect a consumer’s purchase decision.

Three types of perceived costs:

1. Substitution costs
2. Transaction costs
3. Opportunity costs

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In-Store and Online Influences on Brand
Choices
Website Functioning and Requirements
Research suggests ~7 to 10 online shopping carts are
started but abandoned prior to purchase. This means
billions in potential lost sales!
Top five reasons for shopping cart abandonment:

“Reasons Why Website Visitors Abandoned Their Shopping Carts,” See Why, June 3, 2010,
http://seewhy.com/blog, accessed June 13, 2011.

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 In-Store and Online Influences on Brand
Choices
Mobile and Mobile Apps
 Mobile retailing is on the rise

 Mobile apps influencer how consumers shop, both inside

and outside the store environment

 Retailers should focus on features that make apps most

appealing—security, storage of preferences for future
shopping, and personalization, etc.

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In-Store and Online Influences on Brand
Choices
Sales Personnel
The effectiveness of sales efforts is influenced by the
interaction of
• the salesperson’s knowledge, friendliness, skill, and
authority
• the nature of the customer’s buying task
• the customer-salesperson relationship
In the online context, online sales clerks, called avatars,
interact with customers as they shop on their website.

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