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Consumer Behavior at Retail.

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CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
1

3 Consumer Behavior
at Retail
By Dr. Robert Paul Jones, University of Texas at Tyler

Consumers vs. Shoppers: What’s the Difference? Should

You Care?

Consumer patterns have been the dominant point of discussion in retailing and mar-
keting for over 50 years. However, we are just now beginning to understand how
complicated and important it is to understand the habits of shoppers. Research has
identified several key areas in which shoppers are different from consumers. Those dif-
ferences help to clarify how best to support the shopper.

In order to effectively communicate with shoppers, retailers should understand their

needs. This assessment requires an entirely different set of tools targeted to reach the
shopper at retail. In this chapter we will discuss the differences between shoppers and
consumers, track the shoppers’ methods, and explore opportunities for retailers to in-
fluence shoppers’ changing demands. Let’s begin with the consumer.

Consumer: What Do We Know About Consumers?

Consumers have long been prized as a target of marketers and retailers as it has been
proposed that they are reliable and stable in their orientations toward products and
brands. Consumer preference stability is what allows for market segmentation, catego-
rization and profit potential measurement (Kim, Jung, Suh, & Hwang, 2006).
 THE POWER OF MARKETING AT-RETAIL: The Definitive Guide for Practitioners and Students
2

Traditionally, segmentation has been viewed as the “number one priority” in market-
ing, as it allows for the validation of marketing expenditure choices and performance.
However, in order for this method to remain successful, consumer stability must also
hold true over time.

Consumer
“Mario Lopes /Hemera/Thinkstock”

The consistency of a consumer’s orientation toward a product or brand is grounded

in past experiences and projected onto the future. Consumers develop a positive or
negative orientation toward a product or brand as a result of their accumulated prior
experiences with that product or brand (Brakus, Schmitt, & Zarantonello, 2009). Over
time, these accumulated experiences may lead a consumer to develop a preference for
a product or brand. The identification can gain in strength until the consumer not
only feels a sense of loyalty to the brand, but begins to see herself in the brand ( Jones,
Runyan, & Kim, 2012). But if this loyalty is an integral part of the consumer, how can
we account for the variety of different purchase outcomes which result from consumer
acts at retail?

The answer to that question strikes at the very core of difference between shoppers and
consumers. The consumers’ predispositions toward particular brands or retailers are
developed during their reflection upon their consumption and become, essentially, ab-
stract ideals (Bliss, 1960). These associations are not anchored in any individual event,
but rather in the accumulated memories that are associated with all of their experienc-
es. However, when a specific shopping goal enters into the equation for the consumer,
this initial predisposition becomes subject to change. This change occurs because the
specifics which frame a shopping need are not part of the consumer’s world, because
the consumer is not actively engaged in a purchase situation (Bliss, 1960). Consumers
are not on the “path-to-purchase”, the path is reserved for the shopper.
CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
3

The respite the consumer enjoys from being off the “path-to-purchase” allows them to
continue to maintain their preferences unchallenged. It is the lack of a defined need to
purchase that characterizes the consumer. The undefined need also removes the con-
sumer from the concerns associated with the “where” and “how” of purchasing ( Jolson
& Spath, 1973). The “where” may include the choice of retailer, store location and/or
channel selection. Similarly, consumers can also ignore the “how”, including details
associated with payment, purchase timing, transportation, delivery, and so on.

In order for us to better understand how to approach marketing to the shopper, wheth-
er you are a retailer or marketing executive, it is best to first examine what we know
about the shopper.

Shopper: On the Path-to-Purchase

We are learning more about the shopper every day. By pulling together research from
a variety of different perspectives, we can piece together a fascinating picture of the
shopper.

Shopper
Creatas/Thinkstock

The foundation of our shopper understanding includes five areas that distinguish the
shopper from the consumer. These areas are:

1. Active engagement in purchasing.

2. Retail options are considered by shoppers, including locations, stores, cus-
tomer service, and alternative shopping channels.
3. Product options, including brand, size, availability, as well complementary
and substitute products, are important to the shopper.
4. The shopper operates in a dynamic environment where any of a variety of
inputs can alter a shopping purchase solution.
5. The shopper is motivated to shop through specific occasions, which drive her
motivation to solve a purchase need.
 THE POWER OF MARKETING AT-RETAIL: The Definitive Guide for Practitioners and Students
4

We begin by exploring each of these important shopper elements in some detail.

The shopper, critically, is actively engaged in the act of purchasing. Unlike the con-
sumer, who is simply reflecting on past or musing over future experiences, the shopper
has physically engaged “the path to purchase” in order to resolve a defined purchase
need. It is from this understanding that the balance of what we know about the shop-
per follows.

Because the shopper is actively engaged in resolving a purchase need, the selection
of a retailer becomes essential. The shopper must have “a place” to make her purchase
in order to complete the shopping experience. The shopper considers many elements
about retailers in order to make the purchase location decision. Some of the most
important elements shoppers consider are value perception, specialization level, mer-
chandise quality, merchandise availability, sales service, and store location ( Jolson &
Spath, 1973).

The value perception the shopper holds for a retailer can play a significant role in
their selection decision. For example, convenience stores generally tend to have limited
selections and higher prices. These elements help to support their space sensitive, con-
venient, but more expensive locations. The shopper on a “stock-up” shopping trip may
not consider a convenience store for that type of shopping experience. The product and
price limitations associated with a convenience store lower its value perception for a
shopper who is primarily interested in savings. She most likely will opt for a grocery
store environment.

However, if that same shopper is engaged in a different purchase occasion, requir-

ing only the purchase of a quart of milk, she may consider those same convenience
store elements to be of greater value. The perceived value, which the convenience store
lacked for the shopper in the stock-up shopping trip, becomes a central benefit when
the purchase need is for a single item. Therefore, a shopper’s perceived value associated
with a retailer must match their needs for the shopping occasion.

This need for congruence, between retailer and shopping need, can also be seen in a
similar way when looking at a retailer’s merchandise specialization level. The shopper
engaged in a regular or routine “stock-up” shopping trip may be oriented toward a
retailer with a wide assortment of products, such as a supermarket or department store.
The shopper in this case may value the broad selection. Further, their knowledge and
familiarity with the product, due to their routine purchase, may be sufficient enough
for them to shop virtually unaided (Dash, Schiffman, &Berenson, 1976). However,
when that shopper is faced with a more unique purchase need, they may feel that a
supermarket or department store no longer suits their needs. The shopper in this case
may lack sufficient information to feel confident in making a selection. They may feel
for this occasion that they need more selection in a focused category of product to
make a choice. Therefore, they may instead seek out a specialty store. Specialty stores
provide shoppers with narrow, but deep assortments, as well as provide expert advice
to aid the shopper in the purchase decision. This helps to reduce stress for the shopper
CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
5

while providing valuable information for use in future shopping experiences (Chaud-
huri, 2000).

The shopper’s assessment of the quality of the merchandise available from the retailer
also influences their choices (Baker, Grewal, & Parasuraman, 1994). The quality of the
merchandise carried by a retailer sends a signal to the shopper about the type of store
they are shopping in. A shopper would not expect to find caviar at Walmart, but they
may well expect to find it at a FRESH by Brookshire’s.

A retailer’s desired image and the quality perception of the products they carry in the
store should reinforce each other. The closer the retailer and product quality percep-
tions are, the more confidence the shopper has that their purchase decision will result
in an appropriate product selection. The shopper also uses this information to dis-
criminate between retailers when making shopping location choices. If the shopping
occasion does not require a high end product solution the shopper may prefer to shop
at Walmart instead of FRESH, and vice versa.

The shopper will also take into account her past experience with product availability
with a retailer ( Jolson & Spath, 1973). The shopper with a history of positive out-
comes when shopping at a particular retail location may develop confidence in and
a preference for the retail location. This positive outcome is associated with the as-
sortment of merchandise provided as well as the in-stock position the retailer has on
products the shopper is seeking (Campo, Gijsbrechts, & Nisol, 2000). Repeated poor
experiences with assortment and in-stock levels can lead to negative associations. Just
as repeated positive outcomes can lead to a preference, negative outcomes can lead to
retailer avoidance behavior by the shopper.

Service is another key element for the shopper in determining where to shop (Schiff-
man, Dash, & Dillon, 1977). The shopper has expectations for service from the store.
Service is also closely tied to the value perception and merchandise quality selection.
As the shopper’s quality perception of a retailer increases, their expectation for mer-
chandise quality also increases. Additionally, their expectations for service will simi-
larly increase. It is important for retailers to keep these elements in balance.

Finally, the shopper evaluates the store location and/or channel options when selecting
a retailer. In some cases, this decision may already be made for the shopper. Imagine
if a product is only available from a single retailer who has only one store location,
offers no catalog, has no Web site, and does not offer delivery. The shopper in this
scenario has but one option to resolve their shopping need, which is to visit the brick
and mortar location.

In nearly every shopping occasion, the shopper will be faced with options for a pur-
chase location, which will require a choice. In fact, store location is becoming increas-
ingly complicated with the rise of “showrooming”. Such information gathering is
designed to determine value advantage in comparative shopping. While this aids in
building store traffic, it does not result in purchases at the retail location (Zimmerman
2012). For the majority of consumer packaged goods, products are widely available at
 THE POWER OF MARKETING AT-RETAIL: The Definitive Guide for Practitioners and Students
6

a variety of retailers and store locations. This leaves the shopper to determine, based on
her shopping need, which location to frequent (Dash, et al., 1976).

Turkey Creek in Knoxville, TN

In fact, shoppers may become “loyal” to a location where a retailer may have a store,
but not be particularly loyal to any retailer within that location. This can occur when a
variety of retailers inhabit a small area, each providing the shopper with similar offer-
ings. A quick review of the Turkey Creek map reveals that a shopper has many options,
in a relatively limited area, to solve most supermarket shopping needs, including Super
Target, Walmart, Earth Fare, as well as nearby Kroger, CVS, Walgreens, and Dollar
General.

The wealth of options available in this compact zone could result in a shopper becom-
ing loyal to an area or development, while they may not become particularly loyal to
any individual retailer’s store location. In all cases, it is up to the retailer at the store
level to develop a combination of desired atmospherics, service, and reliability that
provide the maximum value for their shoppers. Properly maintained, these in-store
elements can promote a preferential status with shoppers, which results in a desire to
shop at that store location. This preference can be so strong that not only will they pass
a number of competitors, they may even pass alternate locations of the same retailer, in
order to trade with that particular store location.

Taken together, these factors important to shoppers paint a very different picture from
a consumer. As we explore the shopper further, bearing these elements in mind, we will
look at the dynamic world of the shopper and what drives them to shop.

Shopper Mode: What Drives the Shopper?

Shopper mode has generally been described as being actively engaged in decision mak-
ing or prepared to make a choice (Shankar, Inman, Mantrala, Kelley, & Rizley, 2011).
This active choice criterion, which is inherent in the very definition of the shopper, has
been the driving force behind marketing at retail. But a deeper examination of patterns
reveals that shoppers are driven by needs that are associated with specific occasions.
CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
7

These need occasions have been examined from a motivational perspective (Westbrook
& Black, 1985), and from a situational perspective (Belk, 1974). Regardless of the
perspective, the implications for shopper mode are clear; shopping mode begins well
before the confines of a retail space.

Shopper mode is about solving a complex puzzle comprised of product(s), brand(s),

retailer(s), store location(s), and/or channel combinations which together satisfy a
shopper’s need(s). In order to piece those elements together, the shopper must have
some level of understanding about the particular situation in order to assess the pur-
chase need which is associated with it (Belk, 1974; Westbrook & Black, 1985). There-
fore, well before shoppers enter the store, they have been in shopper mode. Shoppers
can enter and exit shopper mode, as well as change modes, frequently and with great
speed. Shoppers can be in shopper mode for one occasion and then rapidly switch into
a shopper mode for another occasion. Shoppers may also bundle multiple shopping
needs into a single shopping experience. Consider how many purchase needs may be
satisfied by a single shopper during a “stock-up” shopping trip. While completing a
multi-occasion bundled shopping trip, the shopper may continually bounce from one
shopper mode to another.

The variation in each of these modes is tied to the shopper’s motivation, which is based
on the particular situation that gave rise to the shopping need. Returning to our ear-
lier example, the shopper who was on the “stock-up” trip may be shopping for items
needed for herself, as well as her family, and perhaps for guests she will be entertaining.
The shopper must juggle all of the competing demands associated with each of the
various purchase needs (Thelen & Woodside, 1997). If the shopper has settled on a
particular product from a particular brand, then that shopper must choose a particular
retailer and find a particular store location at which to shop. These determinations will
be based on the shopper’s prior experience, which the shopper uses to select an option
that will satisfy at least a sizable majority of her purchases. Each is a different situation
that requires its own purchase motivation. The convenience shopper from our earlier
example, who was only looking for a single item, may be acting on a single shopping
motivation, and would therefore not require any resolution of competing demands.
 THE POWER OF MARKETING AT-RETAIL: The Definitive Guide for Practitioners and Students
8

The shopper, different from a consumer, will create a unique shopping experience based
on identified purchase needs. Only when a purchase need is similar in situation is the
shopper likely to generate a similar solution. So with the endless possibilities which
shoppers may approach stores, how do we speak to them at retail? If shoppers have
already determined what they are going to buy, why should we speak to them in-store?
The answer to both lies in the shopper’s search for value.

Shopper Purchase Decisions: The Search for Value

The shopper approaches each shopping experience based on the information available
to her. Armed with this knowledge, the shopper plans a shopping scenario that will
maximize value for the experience. However, the shopper is facing an increasingly
complex and confusing task. After assembling all of the various shopping needs, the
shopper must select a retailer and a store location that sells the necessary products or
brands. Based on this understanding, it should come as no surprise that when a shop-
per arrives at a retailer, up to 70% of purchases will result from the shopper having
had little to no specific knowledge about the products (Point of Purchase Advertising
International, 2012). The shopper may not always plan every purchase item, but may
have only a general idea of what to purchase or have yet to formalize a brand choice.
But, what the shopper does bring to every shopping experience is a value orientation.

Value for the shopper is associated with the optimized solution for a shopping need
( Jones, 2012). Each shopping experience may be oriented toward a different value
expectation. Examples of value orientations a shopper may bring into the shopping
experience are: novelty, security, comfort, performance, recapturing of memories, con-
nection, or a combination of any of these.

It is important to note that missing from this list is price. The shopper understands
that regardless of what they seek to purchase, they will be required to pay for it. As
such, price is not something that the shopper seeks value from (Schiffman, et al., 1977).
Instead, the value that the shopper may seek instead is frugality, which could mean a
variety of things to different shoppers. For example, frugality could mean for:

• Wealthier shoppers: selecting a different cut of meat

• Enthusiast shoppers: buy more and save
• Middle-income shoppers: choosing a store brand instead of a national brand
• Low-income shopper: choosing a smaller package size
• Struggling shopper: choosing an entirely new retailer and product sourcing

Other options may include purchase delay, shopping on sale, couponing, brand switch-
ing, as well as seeking non-purchase solutions such as renting, borrowing, and/or creat-
ing homemade solutions (e.g., baking) ( Jones, 2012).

In each of these cases, price is really not the issue. What the shopper is acting on is
adding value by increasing a sense of well-being or contribution to the family. This
may be expressed through a demonstration of some form of savings, which is at the
CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
9

core of frugality. This is why understanding what the shopper values in their shopping
experience is essential.

During each shopping experience, the shopper will seek to optimize the perceived val-
ue. In order to help the shopper achieve this goal, retailers and marketers need to focus
on solutions that benefit the shopper. Because of this, shopper marketing can message
to shoppers before they enter the store as well as in-store to frame solutions that fit
the shopper’s mode. As well, retailers and marketers can target value messages in the
store to better engage the shopper. The messages have to appeal to what the shopper is
seeking from the experience and, therefore, must be created in part with the shopper.

Responding to the Shopper at Retail: Co-creation of

Value

Which in-store messages are shoppers responding to? Shoppers respond to perceived
increases in value for their shopping experience (Woodruff & Gardial, 1996). Value
increases for the shopper when purchase solutions have more perceived value than
what they anticipated. Shoppers do not have the benefit of consuming the product and
reflecting on that consumption to gain value. Further, if the product is purchased for
another, shoppers do not experience the recipient’s response, which might also have
generated value. Instead, shoppers receive value from the experience of shopping itself.
Was I well prepared for the trip? Did I select the right brand and the right product?
Did I select the correct retailer? Did the store selection measure up to my expectations?
These are the areas that drive value for the shopper (Shankar, et al., 2011; Woodruff &
Gardial, 1996).

Unfortunately, a myriad of events can occur before arriving at the store that can reduce
the shopper’s perception of value. Traffic could be snarled or the parking lot could be
full. The weather could take a turn for the worse. The news could carry a disparaging
story associated with the brand, product, retailer or store location that the shopper had
selected. Changes can occur in the shopper’s social schedule that make the original trip
selections less well suited to an optimum solution. Therefore, the shopper may enter
the store or the online shopping environment feeling that she has already lost value.

Retailers and marketers can use in-store messaging, focused on value drivers, which
will allow the shoppers to participate in co-creation of value during their shopping
experience. This results in an increased sense of performance and value for the shopper
(Payne, Storbacka, & Frow, 2008). Classic brand marketing campaigns have used this
approach. For example, to set itself apart from other peanut butter brands, Jif ’s mes-
sage: Choosy Moms Choose Jif® helped mothers co-create value by not only seeing
themselves as good caretakers, they were also better mothers (Bhattacharjee, Berger,
& Menon, 2011).
 THE POWER OF MARKETING AT-RETAIL: The Definitive Guide for Practitioners and Students
10

Co-creating in-store value messages reinforce what the shopper values for that shop-
ping experience. If it is frugality, then messages about savings, increased volume or
multiple uses may all help to create increased value for the shopper leading to pur-
chases. Notice again that the message is not about price, but is instead focused on what
the shopper values.

If the shopper values novelty for the shopping experience, then they may respond to
messaging about limited time availability, identification of what is new (not improved),
test marketing, exotic appeals, or even their dreams. Security appeals would focus on
guarantees, history, performance, safety, and peace of mind.

As you can see, while each of these messages has a different value focus, each could
help the shopper co-create value with the retailer and the product. The value co-created
in-store helps drive purchases while, at the same time, increasing the shopper’s com-
fort, confidence and satisfaction. The sense of accomplishment associated with the co-
created value can lead to a preference by the shopper for a particular product, brand,
retailer and store location ( Jones, 2012).

Furthermore, these value message appeals do not have to stand alone. Many messages
are complementary and may be bundled together which allows for the leveraging of
multiple shopper value drivers in combination. Retailers are not bound to a single
value appeal within a single store environment, although multiple in-store appeals
need to be carefully reviewed to avoid conflicting messages. A variety of different value
message appeals can be represented across the store using multiple locations through
outposts, bulk-displays and end-caps. These various appeals can target shoppers who
each may have different value needs to be met.

In -store messaging for the shopper develops confidence and enhances value not only
for the product and brand, but also for the retailer and the store location. In fact, the
shopper who has engaged in a valued shopping experience develops a bias for not only
CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
11

the retailer but also the store location, which ultimately impacts the product and brand
selection (Rao, 1969). Therefore, it is not only helpful to the shopper, but also essential
to the retailer and the brand, to successfully address the shopper with value reinforcing
messages, both in and out of the store. This is particularly true when trying to help the
customer who is unsure of what to purchase, or may have come into the retail environ-
ment without a purchase plan at all.

Summary
This chapter has explored the realm of the shopper versus the consumer. Not only has
it examined their differences and similarities, it has also described the retail experi-
ence from a shopper’s perspective, and proposed effective methods to support in-store
purchasing.

Shoppers each arrive at the point of purchase having navigated an unprecedented

number of choices and value options in a challenging and highly competitive retail
environment. The shopper is driven by an acknowledged purchase need, and is seeking
the best possible shopping experience to satisfy that need. Those retailers and market-
ers that maximize the shopper’s sense of perceived value will improve not only their
short-term sales but also their long-term relationship with the shopper. It is the job of
the retailer and the marketer to work with the shopper to understand what she values
for each particular shopping experience. Through that understanding, shopper solu-
tions can be offered in-store to co-create value, drive purchase decisions, and develop
enduring preferences for the product, brand, retailer and store location.

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CHAPTER 3 CONSUMER BEHAVIOR AT RETAIL
13

Dr. Robert Paul Jones

Assistant Professor of Marketing and Retail
Department of Management and Marketing for the College of Business and Technology at the
University of Texas

Dr. Robert Paul Jones is an Assistant Professor of Marketing and Retail, in the De-
partment of Management and Marketing for the College of Business and Technology
at the University of Texas, at Tyler. Dr. Jones worked in the retail industry as an execu-
tive and consultant for over 25 years. He worked extensively as a merchant focused on
product and brand development. During his career he worked with department stores
such as May Co., entertainment venues such as Silver Dollar City and Dollywood, as
well as television retailers like Shop at Home. His most recent position was as Vice
President of Merchandising for Jewelry Television.

Dr. Jones has focused his research on shopper marketing and brands. His interest lies
in determining how both retailer and manufacturer brands can better serve the shop-
per. He has published research on brand experience and single-brand retailers. His dis-
sertation addressed shopper value from a shopper marketing perspective. Dr. Jones has
additional publications submitted covering international retailing and multi-channel
retailing. Dr. Jones also serves as a member of the Category Management Association
Educational Advisory Council.
 THE POWER OF MARKETING AT-RETAIL: The Definitive Guide for Practitioners and Students
14

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