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Showing posts with label Consumer Behavior. Show all posts
Showing posts with label Consumer Behavior. Show all posts

Tuesday, October 15, 2019

Using Mobile Devices in the Retail Store by Suri Weisfeld-Spolter * [10]


Use of mobile devices has become commonplace for contemporary retail shoppers.  At their fingertips, consumers can easily obtain lots of information to aid their shopping efforts and decisions. This phenomenon has been a challenge for some marketers; for others, a benefit.  For instance, brick-and-mortar retailers have announced store closings (e.g., Macy’s in 2016 and early 2017), dissolution (e.g., Limited’s elimination of its store format in 2016 ), or corporate layoffs (e.g., WalMart in 2017), as their financial metrics are upended through e-commerce. At the same time, e-tailers have parlayed their technological competencies to embrace technologically-savvy buyers. Witness Alibaba’s acute aspirations to become a worldwide e-marketer and Amazon’s tremendous expansion of the breadth and depth of its offerings as well as recent establishment of its own global delivery service.
Retail salespeople have traditionally been providers of information for customers. Indeed, until the advent and enormous growth of the internet and e-commerce, sales personnel tended to be the primary purveyors of information in selling.  As noted above, however, the retailing dynamic has changed markedly. Many retail customers now turn increasingly to marshaling information from alternative sources—particularly from mobile devices. In fact, consumers seem to be replacing traditional retail salesperson functions—such as collecting information, comparing prices, and securing the order—with mobile devices. This situation may well foreshadow a decline in the importance of salespersons in buyer-seller interactions.
Interestingly, a consumer’s mobile device is somewhat similar to retail salesperson input in that it mimics the personal nature of selling. Accordingly, many of today’s consumers tend to consult their smartphone rather than interact with retail sales personnel. Indeed, 73% of shoppers would rather use their phones than deal with the salesperson. 
With increasing consumer preference for mobile devices for both hedonic and utilitarian reasons and avoidance of the retail salesperson, we did a study to explore the consumer’s information search behavior vis-à-vis the salesperson’s selling behavior so as to enhance understanding of how retail salespeople can influence mobile dependent shoppers.
We found that the more searching consumers do on their phones, the more they experience increases in perceived control, which fosters their purchase intention. These findings suggest that retailers should create an environment that facilitates feelings of perceived control because that construct is closely connected to the pathway between search and purchase intention. For example, providing consumers with easy access to free wi-fi in stores is one technique to help create a shopping environment that nurtures mobile phone searching. Retailers might also adopt a selling philosophy that helps consumers in their role as search agents to perceive that they are controlling the interaction with the salesperson (e.g., “Come to our store and be the boss,” “We don’t push you; you are in charge”). Because the mobile phone seems to increase feelings of control, retailers should also assist consumers to stay connected to their phone so that they can continue to search in the store. Furthermore, salespeople should be trained to be search assistants for the customers rather than assume the traditional role of “pushing the sale.” In this context, retail salespeople could assist consumers in their search activities by providing comparison websites, review sites, and alternative search terms. In a similar way, companies can create apps for the mobile phone to engage consumers while in the store, and salespeople can direct them to download these applications. 

* Suri Weisfeld-Spolter, Ph.D., is a Professor of Marketing at Nova Southeastern University. She can be reached at sw887@nova.edu  This post is based on her journal article in Psychology & Marketing titled, “Under the sway of a mobile device during an in-store shopping experience”.


Monday, October 7, 2019

Ethnographic Research Uncovers What Customers Value by Herb Brotspies * [7]


Now, more and more marketers are turning to ways to find what customers value—why consumers buy the products they do, how they use them, and importantly, how they relate to products in ways big data or conventional market research surveys cannot.  They are increasingly using techniques used by anthropologists called ethnographic research, studying consumers where they live, where they work, in the kitchen, in the bathroom, in the stores, restaurants, concerts, malls, or college campuses.  This observational method helps marketers by showing how products are used, the meaning of products in their lives, and the lifestyles that influence purchase decisions. 

Ethnography evaluates consumer behavior in detail, identifying important patterns through observation of people engaging in activities such as browsing, buying and trying products, or using services.  Based on ethnographic findings of consumer value, recommendations are made to conduct quantified market research, develop new products, add features to existing products, or change advertising approaches.

Intel, the computer chip maker, uses ethnographic research to understand how teenagers, who grew up with smart phones, use their devices differently than baby boomers, how television and PC technology converge, and how smart phones are taking over most of the functions of personal computers.  J.C. Penney looks in women’s closets to see the brands and styles of clothing they purchase for work.  Clairol, the marketer of hair coloring, watches how women apply hair coloring at home to improve the ease of product use.

5 Ethnographic Case Summaries by Consumer Research Associates
> Abbvie Pharmaceuticals, a marketer of a drug for HIV, wanted to understand the patient journey to identify opportunities for innovation in packaging, messaging, and service.  Researchers observed physicians with patients and conducted in-home interviews with patients to learn how drugs are used.  As a result of the research, new techniques were developed to help patients comply with their therapies and to help physicians communicate and personalize treatment solutions for patients.  
> Miller Lite wanted to understand how brand updates would be received and understood by their current customers.  Researchers conducted in-home qualitative studies to gauge user reaction to marketing ideas being considered.  Interviews were conducted in stores and bars with different brand concepts in a natural setting to gauge consumer reaction.   Using a variety of ethnographic methods, the project culminated in the successful update of all Miller Lite branding and marketing materials.
> Best Buy, a leading consumer electronics retailer, wanted to explore expanding its selection to include a health and fitness department.  They were interested in how well customers would accept this brand expansion with a particular appeal to female shoppers. They wanted to understand the consumer product research and decision-making processes and to identify value triggers for investing in home fitness equipment. Ethnographers collected stories among women who recently purchased fitness equipment learning about stores the participants liked including Best Buy.  Researchers accompanied consumers on shopping trips for fitness equipment to understand the purchase process.  The ethnographic research helped Best Buy design the fitness department and provided direction in product selection.
> Ethnographic research is also useful in business-to-business situations.  Bosch, a manufacturer of production equipment, wanted to determine how to gain a competitive advantage over rival companies.  They first conducted interviews with production managers and then went into the manufacturing plant to observe how production-line staff used competitive equipment.  The observations revealed there were customer needs that were missed by competitors such as awkward adjustments and difficult maintenance procedures.  The result was a line of Bosch manufacturing products that overcame the shortcomings of competitive products.  Observing the use of competitive products, an ethnographic technique, gave Bosch the market insight they needed.
> Miele, a German household products company, wanted to investigate the cleaning needs of people with allergies.  They sent researchers into homes of people who had children with allergies to observe cleaning practices.  Through ethnographic research, they discovered, parents spent extra time vacuuming mattresses to remove allergens.  Parents could not be sure the mattresses were allergen- free, so they kept vacuuming.  Miele developed a vacuum cleaner with a series of lights that indicated when the item is dust-free.  This reduced the time and uncertainty of parents vacuuming their child’s bed, adding value consumers desired.  Based on this research, Miele also introduced a washing machine with special features to thoroughly clean pillows and bedding of allergens.

Big data, finding unusual relationships in structured and unstructured data, will always play an important part in marketing to understand what is happening.  But to develop insight as to uncovering consumer value, marketers use ethnographic research and visit people in their homes, watch how they use products, listen to stories about how and why they buy, what they buy, and gain deep insight into the purchase decisions. 
Perhaps, you should incorporate ethnography into your marketing research toolbox?  

* Herb Brotspies is an Adjunct Professor of Marketing (Retired) at Nova Southeastern University. For further information, contact Dr. Brotspies at hvb95@aol.com or (561) 302-3060.




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