Customer Experience Management In Retailing:

Understanding The Buying Process

PROF. DR. HJ RADUWAN BIN IDAR

NABIHAH ABYAN BINTI MOKTAR

FARAH MADIHAH BINTI ABDUL RAZAK
MUHAMMAD NUR ALIF NAJMI BIN ABU BAKAR
62214119444
62214119047
62214119502
 ABSTRACT

 Retailers recognize that greater understanding of customers can enhance

customer satisfaction and retail performance
 Elements of consumer behaviour, goals, schema, information processing,
memory, involvement, attitudes, affective processing, atmospherics, and
consumer attributions and choices
 Retailing must keep pace and remain vigilant in the pursuit of deeper
customer understanding
 Theoretical domains and offer the greatest opportunity for understanding
customers
GOALS, SCHEMA, AND INFORMATION
PROCESSING

 Consumers attempt to achieve goal by purchasing and using a

particular product or service
 The progression of the experience, the consumer’s perception of
the retail environment and consumer satisfaction with the
experience
 Different outcomes and feelings, depends on the consumer’s
goals
 Consumer goals can be vary as a function of the shopping
occasion
NATURE AND STRUCTURE OF GOALS
 Personal and social needs
motivate shopping

 Consumer seeking an
authentic experience

 Specific goals for either

consumers or type of
shopping environment
(typologies)
 Very general and offer
little insight into how the
goals of an individual
consumer behaviour and
experience
 ROLE OF GOALS IN CONSUMER
JUDGEMENT & DECISION MAKING
o Goal-evoking
o Goals depend on the
o Goals affect the need promotions are more
consumer’s needs
recognition, effective in
and thus establish a
information search, influencing
context for
evaluation, purchase consumers’
organizing
and post purchase behaviour when
knowledge in
stages goals are less
memory
concrete
o Provide explanatory o Cognitive psychology
links between also considers goal o Combinations of
attributes of the motivators and cognitive, affective,
shopping schema organizing forces in and behavioural
that facilitate the acquisition, processes that
cohesive categories storage, and organize and
and behavioural retrieval of cognition regulate behaviour
directions and affect
 CONTINUED..
o Organizing
o Engaging in goal-
framework by which
directed behaviour,
consumers identify
consumers often
the meaning of their
create specialized
retail experience and
concepts
its elements

o Goals and goal-

o Goals affect
derived categories
consumer behaviour
also provide a useful
and assessments of
way of organizing
how well a retailer’s
and conceptualizing
products satisfy
other dimensions of
consumers’ needs
consumer behaviour
 GOALS

MEMORY

ATRIBUTIONS

CONSUME
R INVOVLVEME
DECISION NT
PROCESS

ATMOSPHERI
C

ATTITUDES
AFFECT
 MEMORY

Memory research addresses

these key constructs with
significant implications for
consumer behaviour and
retailing, including how
information
enters/retained/accessed
memory when needed
 NATURE
NATUREAND
ANDSTRUCTURE
STRUCTUREOF
OFMEMORY
MEMORY
STORAGE RETRIEVAL

- 3 stage : memory is sensory, short- - 4 factors : physiological

term, long term. attributes, situational factors,
- High capacity sensory memory often is contextual factors, psychological
automatic but very temporary and states.
based on simple perceptions.
- Short-term : characterized by brevity
- Mood congruence : enhance recall
and capacity. for mood-consistent information,
- Long-term : involves the relatively which enhance subsequent
permanent storage of information with attitudes.
unlimited capacity & permanent
duration.
 CONTINUED..
ENCODING

- Depends on the level at which people

process information, ranging from
preattentive to elaboration
- Can develop through mere exposure and
sensory-level processing
 ROLE
ROLEOF
OFMEMORY
MEMORYININCONSUMER
CONSUMER
DECISION
DECISIONPROCESS
PROCESS
 How salespeople categorize
customers who frequent
their stores and the effect of
those classifications on sales
tactics and success.  Vigilant consumers can recall
prices because they process
the information at a deeper
level.
 In short-term memory: retail
prices have an effect at the
point of purchase but then
disappear.
 INVOLVEMENT
INVOLVEMENT
What retailers do seeks to attract attention and
communicate a message.
Nature and structure of involvement
 How far consumers are inherently interested in information
about a product and motivated to learn more about it.
 When people pay more for something, are accountable to
others for the decision, they are highly involved in the
decision.
 Retailers proactively enhance involvement by personalizing
the experience.
 Low involvement consumers engage in superficial
processing, influenced by basic positive or negative cues.
 ROLE OF INVOLVEMENT IN CONSUMER JUDGEMENT AND
ROLE OF INVOLVEMENT IN CONSUMER JUDGEMENT AND
DECISION
DECISIONMAKING
MAKING
NATURE & STRUCTURE OF
INVOLVEMENT
o Involvement can interact with
demographic variables to
influences the need
recognition stage of the INFORMATION SEARCH
consumer decision process
o Consumers might seek an
optimal level of product
variety, ad the success of
EVALUATION
limited assortment players.
o Retailers increase consumer
involvement is by featuring
ratings and reviews.
 ATTITUDES
ATTITUDES
Retailers expend significant effort trying to evoke positive
attitudes toward their outlets and sited, as well as to the goods
and services to carry.

Nature of the attitude construct

 Both psychology and consumer behavior

viewed attitudes ad multiattribute
summaries of an item and the strength
assigned to each feature.
ROLE
ROLEOF
OFATTITUDES
ATTITUDESIN
INTHE
THECONSUMER
CONSUMER
DECISION
DECISIONPROCESS
PROCESS
 SERVQUAL
proposes that
service quality
provides an
overall
evaluation,
similar to an
attitude, of the
service
experience
offered by a
retailer.
 AFFECTIVE
AFFECTIVEPROCESSING
PROCESSING
Affect has gained prominence as consumer behavior and retailing
researchers identify more opportunities to evoke it through the retail
environment, employee interactions and advertising.

Nature and structure of affective processing

 The omnipresence of affect in everyday life

makes it critical to understand its role in driving
customer behavior.
 Example:
- Loud music may cause a customer’s heart to
race, which implies either a signal to leave the
store or a cue to an exciting environment.
 ROLE OF AFFECTIVE PROCESSING IN
ROLE OF AFFECTIVE PROCESSING IN
CONSUMER
CONSUMERJUDGMENT
JUDGMENTANDANDDECISION
DECISIONMAKING
MAKING

Affect may Affect also Affect may

determine may be a play a role in
where motivation for determining
consumers purchasing a how people
shop. product. shop.
 NEED
NEEDRECOGNITION
RECOGNITION
AND
AND
INFORMATION
INFORMATIONSEARCH
SEARCH
Early process advertising often influence consumers through
feelings, the mood prompted by an ad can influence
persuasion.
Example:
- Advertisement causes a consumer to feel good, he or she is less likely to
scrutinize the factual details of a message and be more persuaded by superficial
attributes, such as the physical attractiveness of spokesperson.
Advertisement makes consumers feel provides an important
predictor of ad effectiveness and perhaps their attitudes
toward the store.
Example:
- Prospective guests at a resort who received a video highlighting the
enjoyment they would experience were significantly more likely to report
that they enjoyed their stay than those who never saw a video.
 EVALUATION
EVALUATION
Consumers move into the evaluation stage, affect likely influences how they
perceive and evaluate products

Example:
-Product attributes that match a cognitive representation with a positive association can
provoke more positive assessments of product quality.
 PURCHASE
PURCHASEAND
ANDPOSTPURCHASE
POSTPURCHASE
 Affect may serve an  Choice confirmation may
informative function, also be an important part of
especially if the feeling
postpurchase satisfaction.
appears relevant by exerting
a mood-congruent weighting
 Example
of product attributes. -Retailers focusing on this
 Example after-sales dimension,
telling customers that the
-To make customers feel more
positively when they gain a purchased item looks
positive feeling about the great on them.
service, customers use this
information to influence their
decision about purchasing a
service warranty.
 ATMOSPHERICS
ATMOSPHERICS
Atmospherics can impact the consumer decision
process in many ways. Its effect on the
evaluation, purchase and postpurchase, likely due
to its integral role in retailing.

Nature and structure of atmospherics

Atmospherics or the retail store environment ,both tangible and
intangible aspects of retail store design and can alter the
customer experience.
Example:
-A retail store with soothing, dim lights might lead a
consumer to experience the store as more pleasant and stay
longer.
 DESIGN,AMBIENT
DESIGN, AMBIENTAND
ANDSOCIAL
SOCIALCUES
CUES
 Layout, equipment, furnishings, Ambient cues influence
signage and the style of décor merchandise value and store
can affect consumers’ patronage intentions.
perceptions of a retail Example:
environment and thus their
-A wine store playing classical music
likelihood of approaching or
sells more expensive wine than
avoiding the product or store.
when it plays top 40 music.
Example:
- Starbucks’ “handwritten”
signs may attract customers by
signaling a more authentic
experience.
 Employee attributes may be important and signal service quality and customers’
perceptions and interpretations of employees’ behavior alters expectations.
Example:
- Consumers perceive that employees listen to them, they may develop trust,
though effective listening requires actively sensing, interpreting and
responding, which can enable the employee to empathize more with
customers.
ROLE OF ATMOSPHERICS IN CONSUMER JUDGMENT AND DECISION MAKING

Perceive servicescapes in an ambient, holistic manner, such that they have

direct and provider-mediated effects on outcomes.

ATMOSPHERICS ONLINE

The first few pages of a website elicit greater pleasure, consumer

behavior and exploration improves.
Example:
- Avatars’ inherent social cues induce perceptions of website
sociability, increase pleasure and arousal, and positively predict
patronage and perceived value.
CONSUMER
CONSUMERATTRIBUTIONS
ATTRIBUTIONSAND
ANDCHOICES
CHOICES
Consumer attributions and choices become central to consumer behavior.

Nature And Structure Of Attributions

Involve assigning cause to an event, which can be related to the retailer, a
product manager, customer or any other entity.
Example:
- A retailer offers a sales promotion, if consumers believe it is a response to
overstocking due to low demand, they likely think the products offered on
sale are not good quality.
Role Of Attributions In Consumer Judgment And Decision
Making
Attributional thinking affects every stage, though most research focuses on the
evaluation, purchase and postpurchase stages.

Need Recognition
Consumer can recognize a need due to intrinsic or extrinsic factors.
Example:
- Messages that suggest consumers under-consume a product could lead
them to think about why they buy.
 Information Search
The information search has behaved in the past or its competitors behave may enable the
consumer to assign a “market-related” or “firm-specific” cause to an event.
Example:
-A company frequently offers free gifts of a trial pack with complementary products, consumers
likely infer it wants them to sample the product and convince them to purchase it later at full price.

Evaluation
The type of cause assigned to an event can influence the overall evaluation of a
product or retailer.
Example:
-The cause assigned to charitable gift giving could be positive that “the firm is
trying to help others” or negative that “the firm is exploiting a cause just to
look good and fool customers”
 Pu rc h a s e
The likelihood of purchase, purchase quantity and purchase timing, as a function of a
specific marketing action depend on the reasons assigned to the event.
Example:
-Consumers believe a price increase results from changes in the costs of production, they will
likely accept it, whereas they may reject the increase if they believe that the firm just wants
to increase its profits.

Postpurchase
Consumers assign reasons for their purchases, which can affect their overall
evaluation of the product, satisfaction with the purchase experience and intention to
repurchase.
Example:
-Service recovery strategies will need to manage customer inclinations to blame
and forgive the retailer.
CONCLUSION

• Contributions of various important consumer behavior theories and

research streams pertaining to shaping and influencing customer
experiences
• They offer a wealth of insights for the retailing arena.
• These topics demand further research that can enrich existing retailing
theory and practice.