PLANNED VERSUS UNPLANNED RETAIL SHOPPING...

Shopping with ConsumersPLANNED VERSUS UNPLANNED RETAIL SHOPPING BEHAVIOUR

Francisco Augusto, Ana Isabel Costa, Rita Vale & Filipa PereiraMiddelfart, 11 May 2011

Background

BACKGROUNDBACKGROUND• Consumption decisions are based on internal

preferences + external cues (Lee & Ariely 2006 JCR)

• Consumers’ interactions with retailers and their marketing actions take place in a strategic context (Bell et al. 2011 JM)

• Shopping plans change and new purchase decisions are made

• Aim: Study in‐store buying behavior, particularly how purchase decisions are influenced by shopping plans purchase decisions are influenced by shopping plans and cues in the retail environment

2011 MAPP WORKSHOP 2

Literature review

Planned versus unplanned shopping behaviorPlanned versus unplanned shopping behavior

– In spite of the use of shopping lists, 40‐60% of all supermarket purchases appear to beunplanned. This is mainly due to in‐store marketing stimuli and impulse buying (Inman etp y g p y g (al. 2009 JM; Block & Morwitz 1999 JCP).

– Unplanned shopping varies with product category, consumer characteristics, shopperstrategies and abstractness of shopping goals (Bell et al. 2011 JM; Inman et al. 2009 JM).strategies and abstractness of shopping goals (Bell et al. 2011 JM; Inman et al. 2009 JM).

– Shoppers differ in purchase decision‐making styles (Sproles & Sproles 1990 JCA). This mayinfluence unplanned shopping.

– Shoppers deviate from planned budget when their estimatesof bundle cost are inaccurate (van Ittersum et al. 2010 JM).

ff– Planned budgets contain in‐store slack and this may offsetunplanned shopping (Stilley et al. 2010, JCR)


Conceptual Framework

Retail Shopping: decision‐making process

Before Shopping trip After

Setting shopping t i l d

Exposure to in‐store stimuli:

Account ofself‐regulatory

trip goals and plans

•Product choice•Planned & unplannedpurchases

g ystrategies and their success

42011 MAPP WORKSHOP

Research Questions

• Q1: What is the proportion of unplanned purchasing in a regular supermarket shopping trip? Does this proportion vary with product category?

• Q2:What is the relation between consumers’ shopping style and • Q2:What is the relation between consumers shopping style and amount of unplanned purchases?

• Q3: How do consumers react to in‐store marketing stimuli? Does Q3 gthis vary with their shopping style?

• Q4: How good are consumers in estimating the resources i d d h i i ?required to conduct a shopping trip?

• Q4a, Q4b:Is there a relationship between unplanned purchases and innacuracy in predicting the money or time spent in a shopping trip?


Research Questions


• Q2: Is there a relationship between consumers’ shopping styles • Q2: Is there a relationship between consumers shopping styles and the level of unplanned purchasing observed?

• Q3: How do consumers react to in‐store marketing stimuli? Does Q3 gthis vary with their shopping style?




Research Questions



• Q3: How do consumers react to in‐store marketing stimuli? Does Q3 gthis vary with shopping style?




Research Questions




• Q4: How good are consumers in estimating the resources i d d k h i i ?required to conduct a supermarket shopping trip?



Research Questions




• Q4: How good are consumers in estimating the resources i d d k h i i ?required to conduct a supermarket shopping trip?

• Is there a relationship between shoppers’ inability to predict the time (Q4a) or money (Q4b) they are going to spend and unplanned purchasing?


Methodology

ICA: Shopping With Consumerspp g

1 ICA = 4 Stages

1. Recruitment 2. Interview at start 3. Shopping trip 4. Final interview

g

How does it work? Main BenefitsHow does it work? Main Benefits

• Based on SWC (Lowrey et al. 2005, JCB);• Collection of consumer opinions, actions and

• Real‐time analysis and visualization of shopping behaviorp ,

perceptions of own behavior occur in sequential steps;• An improvement to SWC, in which the interviewer records shopping behavior in the store, in the form of specific quantitative variables.

• The amount and type of information obtained

•Possibility to confront and debate acts against consumers’ rationalep q consumers rationale

102011 MAPP WORKSHOP

Sample

Socio‐Demographics (n=31)

Gender %Female 71Male 29Age YearsAge YearsRange 20‐79Mean±S.D. 43±19

Household #Range 1 4Range 1‐4Mode 4Education %Low 9Medium 26Medium 26High 65Professional Status %Student 23Self‐Employed 26p yEmployed 35Housewife 6Retired 10Mode Employed


Sample

Shopping Patterns (n=31)

D ti f h i g t i iDuration of shopping trip min

Range 8‐95

Mean±S.D. 57±28

Shopping Frequency %Shopping Frequency %

Monthly 17

Bi‐Monthly 26

Weekly 44y 44

Daily 13

Usual Shop? %

Yes 77

No 23


Q1: Measures

Question 1

Question 2•What is the proportion of unplanned purchasing in a regular supermarket Q

Question 3

Question 4

shopping trip? Does this proportion vary with product category?

1 Number of and expenditure on unplanned

Q1

1. Number of and expenditure on unplanned purchases (category level)

2. Participants’ shopping plans + written shopping list when available


Q1: Results

Question 1

Question 2•What is the proportion of unplanned purchasing in a regular supermarket Q

Question 3

Question 4

shopping trip? Does this proportion vary with product category?

Unplanned purchases at category level

Average: 71% products SD: 25%

Average: 71% expenditure SD: 24%

Planned purchasesDifferences between categories ( l < 001) a ed pu c ases

# Products Expenditure

(p‐value <.001)

Most often

Fruit and vegetables: 18%

Least often

Take‐away: 0%

Most often

Fresh Meat: 26%

Least often

Take‐away: 0%


Q2: Measures

Question 1

Question 2•Is there a relationship between consumers’ shopping styles and the level of Q

Question 3

Question 4

unplanned purchasing observed?

1. Consumer Shopping Styles Inventory

Q2

1. Consumer Shopping Styles Inventory (Sproles & Sproles 1990, JCA): assessed in both stage 1 and 4

2. Number of and expenditure on unplanned h ( l l)purchases (category level)


Q2: Results

Question 1

Question 2•Is there a relationship between consumers’ shopping styles and the level of Q

Question 3

Question 4

unplanned purchasing observed?

Shopping Style (%)

Before After<0 7

>20 6

<47 58

Stated shopping

a. I choose the most known brandsb. I invest time in comparing brands and making decisions

c I choose always the same brands <47 58

>10 3

<3=20 19

7

pp gstyle

changed

c. I choose always the same brandsd. I choose the brands that appeal most to me at the store

e. I have a hard time deciding which brand to buy f. I always choose the cheapest brands

Decision Style (%)

Before After40

6025

75

Effortful Decision Making (b. & f.)

Effortless Decision Making (a. c. d. & e.)


No s. s. relationship between shopping style and unplanned purchases (category level)

Q3: Measures

Question 1

Question 2•How do consumers react to in‐store marketing stimuli? Does this vary with Q

Question 3

Question 4

shopping style?

f f i l b l ( l l)

Q3

1. Preference for private label (category level)2. Number of and expenditure on unplanned

purchases (category level)3. Consumer Shopping Styles Inventory3. Consumer Shopping Styles Inventory


Q3: Results

Question 1

Question 2•How do consumers react to in‐store marketing stimuli? Does this vary with Q

Question 3

Question 4

shopping style?

Preference for Private label

Mean ± S.D. 46 ± 28%

No s.s. relationship between unplanned purchasing and preference for privatelabelNo s.s. relationship between unplanned purchasing and preference for privatelabel

Shopping Style

No s.s. relationship between preference for private label and shopping decisionstyleNo s.s. relationship between preference for private label and shopping decisionstyle


Q4: Measures

Question 1

Question 2•How good are consumers in estimating the resources required to conduct a Q

Question 3

Question 4

supermarket shopping trip?

G b i / d

Q4

1. Gap between time/money spent and planned trip duration/budget

2. Number of and expenditure on unplanned purchases (category level)purchases (category level)


Q4: Results

Question 1

Question 2•How good are consumers in estimating the resources required to conduct a Q

Question 3

Question 4

supermarket shopping trip?

Planned duration ?

Is trip sig. different from

Duration

Planned budget?Expenditure

p g

Gap duration min

Gap expenditure €

Mean (range)

T‐test (μ=0)

min expenditure €

19 [‐41;59]

p<.01 p<.01

17 [‐19;109]


Q4(a,b): Results

Question 1

Question 2•Is there a relationship between shoppers’ inability to predict the time or money Q

Question 3

Question 4

they are going to spend and unplanned purchasing?

No s.s. relationship between time deviation and unplanned purchasing(category level). Budget deviation is however a good predictor.

Estimates Sig.β 0.566 p<.001

Intercept 6.041R2 0 320

Regressor: # Unplanned purchases (category)

Predictor: Budget deviation R2 0.320F‐value 12.728 p<.001

Predictor: Budget deviation

Estimates Sig.Estimates Sig.β 0.754 p<.001

Intercept 23.170R2 0.569

F‐value 35.646 p<.0001

Regressor: : € Unplanned purchases (category)

Predictor: Budget deviation


Conclusions and Limitations

1 The majority of supermarket purchases are unplanned (at category level)1 The majority of supermarket purchases are unplanned (at category level).

No significant association between unplanned purchasing preference for private label as such for private label and shopping style. We suggest 2 hypotheses: either higher preference for private goods implies more planning because of shopping style either it preference for private goods implies more planning because of shopping style, either it implies more unplanned shopping unplanned because buying private label may increase in store slack

Participants underestimated the resources needed to complete shopping trip.No evidence of link between time estimates and unplanned purchase (category), butestimates of expenditure correlate well

22

estimates of expenditure correlate well.



Consumers’ shopping style is not stable No evidence of link between shopping style and2 Consumers shopping style is not stable. No evidence of link between shopping style andunplanned purchases ‐might be due to sample and measure effects.

23



Consumers’ shopping style is not stable No evidence of link between shopping decision2 Consumers shopping style is not stable. No evidence of link between shopping decisionstyle and unplanned purchases ‐might be due to sample and measure effects.

3No evidence of links between unplanned purchasing and preference for private label, andbetween this and shopping decision style. Higher preference for private label may involvemore planning (Effortful shopping style) or less planning (higher in‐store slack).

24


1 The majority of supermarket purchases are unplanned (at category level).

2 Consumers’ shopping style is not stable. No evidence of link between shopping decisionstyle and unplanned purchases ‐might be due to sample and measure effects.

3No evidence of links between unplanned purchasing and preference for private label, andbetween this and shopping decision style. Higher preference for private label may involvemore planning (Effortful shopping style) or less planning (higher in‐store slack).

Evidence of significant deviations in planned trip duration and budget. Budget deviations

p g ( pp g y ) p g ( g )

4 are good predictors of unplanned purchasing.4

25

Future Research

1 Repeat study with larger random samples and across more stores/store visits

Develop better measures for shopping trip goals and shopper strategies2

Record in‐store slack and (more) evidence of preference construal3

Measure planned and unplanned purchasing at additional levels: e.g. quantity, brand andproduct type4 p yp


PLANNED VERSUS UNPLANNED RETAIL SHOPPING...

Documents

Transcript of PLANNED VERSUS UNPLANNED RETAIL SHOPPING...