UM Impulsive or A Surgical Shopper Consumer Behaviour Discussion Do you consider yourself more of an Impulsive or a Surgical shopper/consumer? Or maybe a l

UM Impulsive or A Surgical Shopper Consumer Behaviour Discussion Do you consider yourself more of an Impulsive or a Surgical shopper/consumer? Or maybe a little bit of both? Maybe depends on the situation?
What is the relationship between impulsive buying and income?
… What about with technology?

Please discuss (250 words initial, 100 words response to classmate).

Use the help of the powerpoint

references

plagiarism checked MKT 410 – Lecture 14.3
SURGICAL vs. IMPUSLIVE CONSUMPTION
BEHAVIOR
&
EXPERIENTIAL BRANDING/MARKETING
What is a “surgical hopper?”
‘Surgical’ shoppers are consumers who target specific outlets at specific locations
for specific products, with the intention or knowledge of spending a fixed or ranged
amount of time and money
What is an “impulsive shopper?”
‘Impulsive’ shoppers are those who engage in shopping and consumption
behavior, as a leisurely activity, with no specific or determined product, brand,
outlet, or dollar-amount in mind
• Who do you think spends more?
• What opportunities and threats do these shoppers present?
• Which of the two shopper types is in decline?
• Shoppers today visit an average of three stores during a trip to the mall.. compared to an
average of five stores in 2006…
• …there’s evidence that impulse buys are on the decline. Stores are messier because people
dump so much merchandise before they check out
• …The shift is greatest among low-income Americans… on the first day of each month… when
government assistance electronically drops into debit cards of millions of Americans… Stores that
close overnight report crowds first thing in the morning.
• …As Americans are increasingly selective, stores are under more pressure. One or two fewer
trips per shopper per month may not seem critical, but multiply that by millions of consumers, and
the impact can be devastating for the retail industry
“…The online sector, referred to as “clicks,” has been
slowly eating up market share in the past two decades. Its
total rose from below 5 percent in the late 1990s to about
12 percent in 2019, according to the Commerce
Department.
In February, online sales narrowly beat general
merchandise stores, including department stores,
warehouse clubs and super-centers.
Non-store retail sales last month accounted for 11.813
percent of the total, compared with 11.807 percent for
general merchandise.
To be sure, brick-and-mortar sales are higher when
including other categories such as auto and restaurant
sales….” (Rooney, CNBC Markets, 4/2/19)
What do the recent statistics in Online vs. Offline sales tell
us about consumer behavior? Are consumers becoming
more impulsive or methodical?
• Surgical shopping behavior leads to “appointment shopping”: consumers who visit specific stores
for specific items at a specific time of the year (like Christmas, St. Valentine’s Day, ‘Back-2School’, etc.), but ignore them throughout the year
• Online, people are lingering less at each shopping site than they did in 2008 …more people are
going to a site and leaving in a few seconds — 35 percent, up from 25 percent two years ago
•
shoppers know what they’re shopping for and then they want to go on to the next activity…
They’re spending more time searching and shopping instead of browsing
• … supermarkets combine store-brands with national brands
• … giant retailers bundle items so that consumers have “one-stop-shop” within the giant “one stop
shop” stores
• … clothing stores feature more “wear it now” items than seasonal items
“… [a] study of 2,000 consumers shows they make
three of those purchases a week, adding up to $450 a
month and $5,400 per year.
… 70.5 percent of respondents saying that category
was the major culprit…
… 85 percent of survey respondents said their impulse
purchase involved taking advantage of a deal or
discount…
… On a per-person level, the average consumer has
about three credit cards and a total balance of $6,375,
up nearly 3 percent from a year ago…
[O’Brien, CNBC Personal Finance, 2/23/18]
WHEN SHOPPING FOR THEMSELVES vs SHOPPING FOR SOCIETY’s SAKE
•
Studies have shown that when consumers shop for themselves, i.e. for the sake of their own indulgence, or
are driven by opportunism, they behave more IMPULSIVELY
•
When consumers shop with a social, sustainable, environmental mindset, their shopping behavior becomes
increasingly more selective, or “SURGICAL”
EXPERIENTIAL BRANDING/MARKETING
https://hbr.org/2012/01/the-genius-bar-branding-the-in
EXPERIENTIAL BRANDING/MARKETING
The Genius Bar is a place dedicated to providing technical support within Apple stores to customers having
problems with the product or application…
How does the Apple Store impact the Apple, from a branding and financial perspective?
•
•
•
•
Sales per square foot is more than $5,000, which is six to ten times other successful retailer
The average store pulls in 18,000 visitors a week
Provide a way to express the Apple brand and showcase its products
No longer reliant on electronic retailers who are unwilling or unable to provide an in-store Apple
experience.
https://hbr.org/2012/01/the-genius-bar-branding-the-in
EXPERIENTIAL BRANDING/MARKETING
Why has the Genius Bar in Apple Stores been so successful?
•
•
•
•
It is branded (“Genius Bar”)
It has a personality (what is it?)
Staff comprised of ‘Apple devotees’
“APPLE doctrine”:
• APPROACH; PROBE; PRESENT; LISTEN; END
• Create & Staff Genius Bars & Stores based on in-house technology
• Engaging CRM experience
• Convert customers into Apple fans
It became a venue to reinforce, enhance, and recover customer relationships
EXPERIENTIAL CO-BRANDING/MARKETING
Following the latest wave of price cuts at Amazon’s Whole Foods, announced Monday evening, Walmart today introduced its
own plans to challenge Amazon on grocery shopping through a partnership with Google. The company is rolling out a new
voice-ordering capability, Walmart Voice Order, which works across Google Assistant-powered platforms, including Google’s
smart speakers and displays, smartphones, smartwatches and more…
…The technology works similarly to what was developed for the Walmart-Google Express deal. For example, when a
customer asks to order an item, the assistant will know to reorder the customer’s preferred item based on their order history.
The assistant will also inform the customer which item it’s choosing and the price point…
…Walmart says the new voice-shopping feature will launch to all Google Assistant-powered devices this month, including
Google Home, Android and iPhones, smartwatches and other platforms, including those from third parties like JBL or Lenovo,
among others…
What is brand experience and experiential branding?
Brand experience can be thought of as sensations, feelings, perceptions, and behavioral responses
evoked by brand-related stimuli
The more powerful the experience is, the stronger the brand impression
Brand experience also affects consumer satisfaction and loyalty; it allows the brand to sell products
at a premium and to create competitive entry barriers
Experiential branding is a process by which brands create and drive sensory interactions
with consumers in all aspects of the brand experience to emotionally influence their
preferences and to actively shape their perceptions of the brand
Interactions involve:
• communication
• brand space
• product and service elements

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