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Chapter 5: Identifying and Understanding Customer Behavior

Increasing Sales with Problem Solving

Learning Objectives

  • Describe how a retailer can increase sales from customers engaged in extended and limited problem-solving
  • Describe how a retailer can satisfy the needs of habitual decision-making consumers by acting in ways that increase loyalty.

Extended Problem-Solving

Consumers with an extended problem-solving mindset put a great deal of effort into their purchase decision, gathering information through research and evaluating all options, before arriving at a decision. Because of the time and energy committed to the search, this diligence is more likely dedicated to selecting and purchasing high-consideration or high-value items like cars, electronics and appliances. Or, it may be focused on something that is new or infrequently purchased. Thus, the consumer feels compelled to do more research to ensure their needs will be satisfied.

While it may be tempting to assume that these shoppers are mostly concerned with quantitative assessment of the alternatives, motivations can also be qualitative, building on external influences like cultural norms and family influences. Yet, it should be noted that these customers are deliberate in their process and are unlikely to be swayed directly by advertising, merchandising and promotion. As such, salespeople can be important in helping the consumer arrive at a decision.

For these shoppers, a salesperson will need to be able to engage the consumer to understand what their specific needs and concerns are, relative to the purchase. That is, what are they specifically hoping to get by buying the product– not the item itself, but what benefits it will provide? Further, the salesperson will need to be able to speak to how well specific features will meet the consumer’s stated needs. And, they will need to be educated on the features & benefits of both the goods they’re selling and those of competitive items, as they will likely need to compare and contract specific differences.

Because these consumers with an extended problem-solving mindset are deliberate in their shopping process, salespeople should expect that they will not “close the sale,” during their first interaction. Instead, they may need to nurture the relationship with the customer, helping them arrive at their purchase decision over time. Thus, effective salespeople will be those who engage in follow-up with the shopper, making themselves available to answer questions or provide perspective.

Limited Problem-Solving

By contrast, consumers with a limited problem solving mindset put in little consideration before arriving at a decision. Because of the minimal time and energy committed to the search, this mindset is most common with selecting and purchasing low-consideration or low-value items. These may also be purchases that have little to no emotional significance. Simply, the consumer is unwilling to over-invest time or effort in a decision that has little importance or where a “bad” decision has no lingering negative effects.

These shoppers don’t need a high level of engagement. Instead, they need to be cued to make a purchase. Thus, advertising, promotion and in-store merchandising can be especially helpful in influencing the decision. Think again about your local grocery store, imagining that you’re walking down the dental care aisle. Each item on-shelf, through its packaging—the images and words, the colors and fonts—is trying to communicate to you a reason to buy. The displays, floor or shelf graphics and special tags are doing the same. And, given the low relative price-point of the items and the low risk of making a mistake in buying the “wrong” product,” shoppers can make purchase decisions with a limited problem solving mindset.

Habitual Decision-Making

As you read, some consumers have an extended problem-solving mindset, putting a great deal of effort into their purchase decisions. Others have a limited problem-solving mindset, putting little consideration into their purchase because it is trivial. Still, there is another way that consumers arrive at their purchase decisions and that is routinized response behavior or by habit.

These consumers don’t think about their purchase–not because it’s of low importance or trivial, but because they have already arrived at a conclusion about which product or brand will best meet their needs. They don’t need to dedicate more thought or consideration because their needs are being met (or exceeded). From a marketers perspective, this is ideal because the investments in marketing activity has paid off in the acquisition and retention of this customer, reflected in their on-going loyalty.

Customer loyalty results when a consumer has consistent, positive experiences with a product, brand, or firm over time. That is, it is on-going and reflects the breadth of value in all interactions, including in exchange, use, and experience.

Specifically, does the product or brand or firm provide value equal to or greater than what I pay for it (value in exchange)? Is the toothpaste worth the $3.49 I pay for it or more to me? Does it provide value to me in the form of the benefits I seek, when I use it (value in use)? Does the toothpaste freshen breath, whiten teeth and protect against gingivitis? And, does it provide value to me in how I experience it, which includes how I shop for and obtain it (value in experience)? Can I easily find this toothpaste where I shop in the quantities I want? Thus, customer loyalty is the result of a firm delivering customer value in all forms, meeting and exceeding consumer expectations over time.

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Cannabis Dispensary Retail Management Copyright © 2024 by Maureen Peters Gittelman is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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