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Showing posts from October 18, 2020

CH. 9: Judgment and Decision-MakingBased on Low Consumer Effort

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Costco does an amazing job with visual aspects as they know how to affect consumers’ feelings, behaviors, thoughts, and actions. There are several sample stations located inside of Costco. Customers are able to pinpoint them when they see that there are several individuals standing near the sample stations. They tend to go towards the group of people to see what the hype is all about. Once the customer tries the sample or samples out they tend to do an impulse purchase especially if it is a familiar brand like Kirkland. This develops a habit for consumers by repeatedly making purchases based on Costco samples. This makes their life simpler and more manageable because customers then believe that the samples are both top tier and tasty.                                                               Cons...

CH.8: Judgment and Decision-Making Based on High Effort

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Emotional Accounting                                 Consumers are given positive feelings with each mental account for saving/spending at Costco because of their deals and unique finds. Upon Costco's mission statement of continually providing its members with quality goods and services at the lowest possible price, consumers feel good about shopping at Costco. With such discounts on goods like name brand products, foods, and clothing items, consumers relate their shopping experience to be a positive one. Their mood can also increase when they find a certain item at Costco. This also gives consumers the incentive to come back to Costco if they have experienced a positive mood/feeling. Not only can they feel good about having an exclusive deal based on their membership, but they also acknowledge the fact that they get to save more going to Costco rather than going to a grocery or department sto...

CH.7 : Problem Recognition and Information Search

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Costco focuses on providing the best possible service for its consumers which means they are on top of their problems with persistent information research. One problem that Costco has always had is its long lines due to popular demand. Even though Costco has so many registers available they have always struggled with maintaining them. Costco recognized this problem and provided an amazing solution to it which is self-checkout! With self check-out being available customers are able to scan their products at a much faster rate. Customers will be able to get in and get out without having to wait through those long lines.                 As we all know Costco is primarily membership-based. This means people who don’t sign up for the membership can not enter or purchase anything within the warehouse. Costco relies on the membership program, which is why they won’t allow nonmembers to shop. However, as of recently, they have been allowing non...