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Consumer & Buyer Behavior Presentation Final

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Group Presentation for Consumer & Buyer Behavior Course at SJU. Shopping Addiction Project Presentation.
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Do you hide purchases from your loved ones? Are there items in your closet with the tags still on? Do you "forget" about purchases & wonder how to pay for them when the bill arrives? Do you often tap into "emergency" savings to make ends meet? Do you travel at the drop of a hat or Could you be a Shopaholic?
Transcript
Page 1: Consumer & Buyer Behavior Presentation Final

• Do you hide purchases from your loved ones?

• Are there items in your closet with the tags still

on?

• Do you "forget" about purchases & wonder how

to

pay for them when the bill arrives?

• Do you often tap into "emergency"

savings to make ends meet?

Do you travel at the drop of a hat or

take more trips before past ones are

paid for? (Bridgforth, 2004)

Could you be a Shopaholic?

Page 2: Consumer & Buyer Behavior Presentation Final

Presenting…

Starring Brian Carney, Lanae Corby, Robin Juliano Dart, Nicole Lima, Laura Matz

RESEARCHGROUP

Page 3: Consumer & Buyer Behavior Presentation Final

ShoppingPurchasing anything either in a store, online, via catalog, etc. excluding essential items (i.e. food and toiletries) required to live.

Compulsive Buying Disorder (CBD) Characterized by excessive or poorly controlled preoccupations, urges or behaviors regarding shopping and spending, which lead to adverse consequences.

- U.S. National Library of Medicine & National Institutes of Health

Definitions

Page 4: Consumer & Buyer Behavior Presentation Final

About 18 million Americans present excessive shopping habits that interfere with their relationships or careers.

- American Journal of Psychiatry 65% of readers have hidden bags from someone close to them and26% shop online more than once a week.

- Lucky Magazine, Readers’ Survey, May 2011

While compulsive buying is more common in women, men are close behind. • Women = shop as a social activity (shoes,

accessories, etc.)• Men = shop to compete (electronics, real estate,

etc.) 

Compulsive BuyingSome Interesting Facts

Page 5: Consumer & Buyer Behavior Presentation Final

74% admitted that they go shopping once a week. Participants spent an average of $25 to $50 per week shopping. 76% percent also owned between one and three credit cards, including store credit cards. The majority of those that took the survey stated that they actually feel a certain “high” after completing a shopping spree. 19% percent of the participants admitted that they have gotten themselves into financial trouble because of their careless shopping habits. Almost half of those who took the survey disagreed that they felt guilty after purchasing these items, even though sometimes fully aware that they simply could not afford them.

Group Research Survey Results

Page 6: Consumer & Buyer Behavior Presentation Final

• Shopping is a Pastime that Bonds us together

• Across Cultures, Genders & Ages

Shopping Makes Us Happy

Page 7: Consumer & Buyer Behavior Presentation Final

Why? It’s All in Your Head!

• Central Nervous System• Nucleus Accumbens = Rewards Brain w/ the Opioid Dopamine HERE• Amygdala & Cerebellum also involved with

emotional reactions to pleasure. Shopping is Highly Involving.

• Dopamine creates a temporary “high”, also released during sex.

• These feelings can be Addictive!• Gamblers, Drug Abusers, Alcoholics and even

Shopaholics experience this.

“Credit buying is much like being drunk. The buzz happens immediately and gives you a lift.... The hangover comes the day after.” 

- Joyce Brothers, Psychologist

Page 8: Consumer & Buyer Behavior Presentation Final

Can Shopping Make You Crazy?• Compulsive Buyers can also have:

• Anxiety Disorders (OCD)• Affective Disorders (Bipolar)

• Obsessive Compulsive Disorder (OCD)• Obsessive thoughts and compulsive behaviors• Obsessions

• Recurrent thought and/or urges• Cannot be controlled

• Compulsions• Purposeful, repetitive behaviors• Reduce anxiety from obsessions

• Bipolar Disorder• Disease of the nervous system• Previously known as manic depression• Impairs thinking and judgment

Jack Nicholson in As Good As It Gets

Page 9: Consumer & Buyer Behavior Presentation Final

The Shopping Industry is Fully Integrated into Every Aspect of Our Lives

Corporations are VERY aware of shopping’s affect on consumers, as a result of investing in extensive research.

Corporations exploit this weakness using various marketingtechniques.

• Retail (i.e. Malls, Store Cards, Grocery Stores)

• Credit Cards (Chase, Discover, etc.)

• Online Shopping Sites (Ebay, Gap, Loft, etc.)

• Magazines (Lucky, Marie Claire, etc.)

• In-Home Shopping Companies (Tupperware, Avon)

Contributors to Compulsive Buying

Page 10: Consumer & Buyer Behavior Presentation Final

• Malls, Shopping Centers & Stores are all designed to grab the shopper’s attention

“A man will never love you or treat you as well as a store. If a man doesn't fit, you can't exchange him seven days later for a gorgeous cashmere sweater.”

- Rebecca Bloomwood from Confessions of a Shopaholic

Retail Marketing Techniques

Page 11: Consumer & Buyer Behavior Presentation Final

• AIDA (Attention > Interest > Desire > Action)

• Use of Sensory Stimuli— Visual Displays, Music, Scents ignite the senses and excites consumers so that they shop longer and spend more $$$.

“Shopping is my Cardio.” - Carrie from Sex and the City

Retail Marketing Techniques

Page 12: Consumer & Buyer Behavior Presentation Final

Promotions & Sales IncentivesVictoria’s Secret, Nordstrom, Macy’s, JC Penney,

Bloomingdales, Neiman Marcus, Express, Etc.• Spend certain amount, get a discount

(spend $350, get $50 off your purchase)• Free Gift - Spend $150, receive a FREE tote bag

(Victoria’s Secret and Neiman Marcus)• Store credit cards – sign up for store card and receive

discount, the more you $pend the more you $ave ???(use store credit cards more = interest and debt)

Retail Marketing Techniques

Page 13: Consumer & Buyer Behavior Presentation Final

Grocery Stores (Acme, Giant, Fresh Grocer, etc.)

• Stores are carefully laid out to guide consumers around entire store (Directed down more aisles to increase chances of purchasing more than what they came for)• Place necessity items towards the back

(get consumers to walk through entire store)

• Distribution of coupons (influence consumers to buy products they normally wouldn’t just because of discount)

Retail Marketing Techniques

Page 14: Consumer & Buyer Behavior Presentation Final

• The more money you spend = more money you will get back in CA$H! (i.e. Chase Credit Card)

• Encourages people to use their credit cards more often = DEBT!!!

“I like my money right where I can see it: hanging in my closet.”

- Carrie from Sex and the City

Credit Card Companies

=

Page 15: Consumer & Buyer Behavior Presentation Final

Shopping Sites Make It Easy & Convenient to Spend(Ebay, Groupon, Living Social, Gap, Piperlime, DSW)

• Rainy Day? Still In Your PJ’s? You Can Shop From Home!!

• A Computer & Credit Card is All You Need

• “Expedited Shipping”, “Easy Returns” & “Online Only Sales”

Online Marketing Techniques

Page 16: Consumer & Buyer Behavior Presentation Final

Magazines Make It Easy to Spend

• Shop with Your Cell Phone = Instant Gratification• “Text to Buy” items featured in Lucky Magazine• QR Codes – Cell Phones Direct Readers to Company

Websites

• Articles Feature Online Shopping Sites & Blogs

Magazines

Page 17: Consumer & Buyer Behavior Presentation Final

Representatives Bring the Store to Your Living Room

• Tupperware – Kitchenwares

• Avon – Makeup

• Premier Designs - Jewelry

In-Home Shopping Companies

Page 18: Consumer & Buyer Behavior Presentation Final

Famous Sources = Star Power – Musicians, Actors & Athletes

• Celeb Shopping Sightings – Magazines & Websites

• Product Endorsements & Sponsorship (i.e. American Idol – Coca Cola)

• Product Placements – Movies, Music Videos, TV Shows

Other Influences

Page 19: Consumer & Buyer Behavior Presentation Final

Mainstream Media - Movies & Television• Consumers Identify with Idols & desire their Lifestyles• Shop to become their Ideal Selves • Meanwhile their Actual Selves are falling into Debt • Most can’t afford a team of stylists and personal trainers

Other Influences

Page 20: Consumer & Buyer Behavior Presentation Final

Group Influences - Social Pressures

• Social Media – Facebook, Twitter• Phone Applications – Games, Shopping Sites• Word of Mouth, Viral & Buzz Marketing

Expectancy Theory – Compulsive Shoppers BelieveTheir Actions will Lead to Social Acceptance

Attitude Function: Utilitarian• Rewarded with “Shiny” new purchases = Pleasure• Punished by having to pay for them or face Debt = Very

Painful

Attitude ABC’s: Hierarchy of Effects • Experiential/Hedonic• Affect (Emotional Reaction) > Behavior (Buy) > Cognition (Think

After)

Influences & Attitudes

Page 21: Consumer & Buyer Behavior Presentation Final

Dangers of Compulsive Buying• Hoarding – (Hoarders on A&E & Clean House on Style

Network)

• While attempting to reach their Ideal Self, a Compulsive Buyer’s Actual Self has become obsessed with obtaining and having possessions to fill the void.

Warning:

Eeeek!!

Page 22: Consumer & Buyer Behavior Presentation Final

Starting the Recovery ProcessHelpful tips to keep from getting Carried

Away

Educate Yourself on the Topic

Make a Shopping Diary to Track Purchases

Set up a Budget and Set a $avings Goal

Cancel Magazines, Catalogs, Emails

Avoid Carrying Credit Cards“If I don’t stop shopping, I’ll end up a bag lady; a Fendi bag lady, but a bag lady…..”

- Carrie from Sex and the City

Page 23: Consumer & Buyer Behavior Presentation Final

Breaking Up With Shopping

“I always say shopping is cheaper than a psychiatrist.”

- Tammy Faye Bakker

Steps to Break the Addiction

Get professional help Proper medication Involvement in Support Groups Encourage family/friends to learn about topic Treat all existing addictions

Page 24: Consumer & Buyer Behavior Presentation Final

Sources for Help Financial Recovery Institute AllPaid Hearth House Debtors Anonymous (DA)• Meetings began in 1982• Recovery methods are based on that of

Alcoholics Anonymous• More than 500 registered meeting groups in

over 15 countries• Success of the program relies on the support

each member receives from one another

Page 25: Consumer & Buyer Behavior Presentation Final

Debtors AnonymousA Typical DA Meeting Men and Women equally represented Importance of anonymity was emphasized at all times Short prayer to God asking for knowledge and for the

courage to change – Serenity Prayer Reading of the twelve steps embraced by the

organization Introduction of newcomers Pre-selected reading from an outside source Sharing time

Tools Offered Weekly Meetings Pressure Relief Meetings Business Meetings

Page 26: Consumer & Buyer Behavior Presentation Final

Thank You Very Much!!!

To Our ProfessorTo Our Classmates

To Our Survey TakersTo Our Group Members

Page 27: Consumer & Buyer Behavior Presentation Final

Any Questions???


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