GGR252H5 Lecture Notes - Lecture 5: Price Point, Distance Decay, Consumer Behaviour
Document Summary
Shopping motivation- why are they shopping: hedonic- for pleasure, luxury, desirable objects, higher price point/ lower price sensitivity, lower frequency, keen on the shopping location and what stores we will go into. Retail attributes hedonic purchases: specifics of retail facility or format, will try to draw people in, want consumers to have a good experience, designed to attract people. Past experiences: related to the personnel in the store, friendly workers. If they have a good experience and enjoy the employees and the vibe they will come again. Rewards: loyalty cards, offering discounts for future purchases. Importance of distance- distance decay effect: *not normalized, travel greater distances for higher end goods, shorter distance for necessity goods, relationship with travel patterns, motivation- hedonic or utilitarian. Life level- income: determines, purchasing power, purchasing priorities, type of purchases, mobility, geography of shopping, discretionary and non-discretionary expenditure, utilitarian and hedonic. Life-cycle- age and family: discretionary and non-discretionary, focus of shopping activity.
