Tuesday, March 24, 2015

Paper or plastic: checking out consumption influences at Trader Joe's


The 3rd and Final Voyage

Grocery Shopping: an acquisitional or experiential activity? 


Grocery shopping would typically be considered an activity that requires acquisitional shopping, or activities that are oriented toward a specific, intended purchase (Babin/Harris 2014). Grocery stores are usually filled with busy parents with a list of items they need and try to get in and out of the store in as short of time as possible. However, Trader Joe’s plays on many affective qualities rather than just functional qualities a grocery store is expected to make up their retail personality.

External influences of Trader Joe's


Physical Surroundings: External influences related to Trader Joe’s include the physical surroundings, or atmospherics and retail personality. Affective qualities relevant to Trader Joe’s include friendly employees, bright lighting, the vibrant colors, and the store design and layout. These are the qualities that represent emotional meaning to the shopping environment and result from the sum effect of all ambient attributes that affect the way the shoppers feel about the store (Babin/Harris 2014). Trader Joe’s emphasizes affective qualities and gives up some functional qualities such as a wide selection. Compared to the 30,000 products a traditional grocer offers, Trader Joe’s only stocks 2,000 items (Bloomberg). However, Trader Joe’s is well known for their functional quality of guarantee. They have a return policy that you are able to be fully refunded or exchange any item for any reason without questions asked. It could be as simple as you don’t like the product.

Examples of the vibrant colors and external influences that make the shopping experience experiential and draw attention of consumers to certain products

Social Surroundings: Social surroundings do not tend to play as significant of a role when I am grocery shopping because I prefer to shop alone. Social surroundings including those who are present during decision making and can present peer pressure that affects our purchases tends to be minimized when I go grocer shopping since I try as often as possible to go alone (Babin/Harris 2014). An exception to this would be the social surroundings of the employees working at Trader Joe’s. Since they are so knowledgeable about the products, whenever I ask for a recommendation, I end up feeling peer pressure to make a purchase of the product they recommended even if I was just asking for a recommendation for future reference.

My Guilty Pleasure: Impulsive Consumption at Trader Joe's 

One thing I have noticed when shopping at Trader Joe’s is my impulsive consumption of the Cookie Butter candy bar (Can you blame me?! If you haven’t tried it yet I highly recommend this bar of pure deliciousness). The act can be classified as impulsive because it is spontaneous and involves a short-term feeling of liberation (or in this case satisfying my sweet tooth), diminished regard for any cost or consequences associated with the act (similar to the Starbucks study discussed in class about annual spending adding up, I justify that it is only $0.99 and also ignore consequences of the additional calories I’m consuming), and also being motivated by a need for immediate self-fulfillment and are highly involving emotionally and associated with hedonic shopping value (as mentioned in my previous blogs I place more hedonic value of the fun, exciting experience of grocery shopping and would be classified as a more highly involved shopper) (Babin/Harris 2014). Trader Joe's, like many other grocery stores, understands that point-of-purchase displays are an easy way to attract impulse purchases and it is no surprise that these candy bars are located right at the checkout lanes for susceptible shoppers like myself. Over time though, I have found this impulsive consumption behavior turn into a re-occurring purchase, and therefore it may be shifting from an impulsive buy to a habit.
An example of my impulsive consumption at Trader Joe's


 Well that wraps up my third and final blog for MKT313! I hope you all have enjoyed learning about the shopping experience of Trader Joe's and these blogs have encouraged you to see what all the hype is about for yourself! If the cookie butter chocolate bars aren't enough to convince you, then I don't know what is...

Sources: 
Trader Joe's Recipe for Success
Babin/Harris (2014) Consumer Behavior

Tuesday, February 10, 2015

Consumer Behavior Concepts Guiding My Trader Joe's Voyages

I can say without embarrassment that I have returned to Trader Joe’s five times since my last blog post. I’m amazed at how I become more cognizant of how consumer behavior concepts apply throughout my shopping experiences with each shopping trip.

My Perception of Trader Joe's

Naomi's Perceptual Map of Grocers
As mentioned in my last post, Trader Joe’s has this perception problem that it is a high priced grocer, similar to Whole Foods, since the chain sells very health conscious products. I have created a perceptual map in order to graphically depict how I perceive Trader Joe’s in relation to other grocery stores (Babin/Harris). How does your perceptual map match up?



How Trader Joe's Guides Customer Attention

One way that Trader Joe’s provides exposure and draws attention to specific products is by creating sampling stations throughout the store. This brings various products within a close proximity of shoppers so that it appeals to their senses and the consumer has the opportunity to see, smell, and taste the product (Babin/Harris). There is always one permanent sample station near the back of the store that features some sort of food product and then has an adjacent coffee station. During peak times for shopping, such as a weekend afternoon, Trader Joe’s also has additional stands for sampling products throughout the store. I fell victim to these marketing tactics and had an immediately positive sensation when trying the pesto quinoa (the stimulus) with the breaded cod (Babin/Harris).  This sensation led to me purchasing a jar of the pesto, and will probably be added to my list of favorites! I am doubtful whether or not this particular product would have caught my selective attention had the strength of the stimulus been as intense as it was. 


Trader Joe's intensifies stimulus through drawing attention to specific product offerings


Also, keep it mind that if there is anything other than the products that are currently being sampled throughout the store, you are always able to ask an associate to try any given item (even wine if you are of age!). 


The Trader Joe's Crew Makes For A Smooth Sail


Another consumer behavior concept I noticed while my most recent shopping trips to Trader Joe’s is related to the message source. Typically retailers with low-paid employees see a lot of turnover and incur high costs to train new employees. Trader Joe’s invests a lot in their employees, and I have noticed firsthand the expertise, knowledge, and great attitudes of the employees that are drastically different from any other grocery clerk. During my most recent visit, I was staring blankly into the expansive wine selection when a Trader Joe’s employee approached me asking if I needed help. She asked me who I was shopping for and went through a checklist of preferences with me and was able to provide knowledge of not only the Trader Joe’s selection of wines, but wines from various regions as well. I perceived the employee to have strong product knowledge and a trusted source of advice on wine, and therefore believe that Trader Joe’s that establishes strong message source credibility (Babin/Harris). 
Trader Joe's Employee Benefits
More on Trader Joe's employee selection and careers

Sources:
Babin/Harris (2014) Consumer Behavior
http://www.theatlantic.com/business/archive/2013/03/the-trader-joes-lesson-how-to-pay-a-living-wage-and-still-make-money-in-retail/274322/
http://www.traderjoes.com/careers