Business / Consumer Behavior Towards Kiosks

Consumer Behavior Towards Kiosks

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Autor:  anton  04 January 2011
Tags:  Consumer,  Behavior,  Towards,  Kiosks
Words: 5927   |   Pages: 24
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Research Objective

We evaluated a market research study involving regret and low variety related to kiosks purchases. We evaluated the results with an SPSS program in order to prove our analysis. The aim of this study is to gain a deeper understanding of consumer behavior and opinions regarding kiosk retailers. In particular, this study investigates the relationships between risk seeking and attitudes as well as the relationship between gender behavior and low assortment.

Introduction

It is December 23rd and the malls are filled with last minute Christmas shoppers. The shoppers may ask themselves where they are going to shop. Should or shouldn’t they go to their usual department store? The lines are treacherous, and time is definitely an issue the day before Christmas Eve. These last minute shoppers may decide to shop at an easy to access kiosk. From November-December, kiosks earn 80% of their annual profit. Kiosk shopping allows last minute holiday shoppers to buy the gifts they need.

Kiosks have a great impact on consumer behavior. First of all, a kiosk is defined in three different ways according to Ask.com. The definition most valuable to a market research study would be, “a small structure, often open one or more sides, used as a newsstand or booth.” Each year, consumers spend 10 billion dollars on retail products sold at kiosks. These retail products are sold at various kiosks in malls, airports, subway stations, and resorts. Kiosks also have a great impact on consumers because they are easy to access, and consumers can make quick purchases. Kiosks contribute anywhere from 10-15% of a malls annual revenue as well. This generates even more annual income for a mall.

History

The first kiosk was built by the Seljuks, Persians, in the mid 1400’s. The Turkish were the next group to build a kiosk, and that is who he English first encountered a kiosk from the Turkish. The Turkish defined kiosks as “pavilions” and used them as summerhouses. Lady Wortley Montagu adapted the idea of a kiosk to England in the early 1700’s. The English used kiosks in their gardens and parks serving beverages and coffee. Soon after, tourists’ information was available at kiosks in England. The French also adopted the idea and used kiosks to sell newspapers.

Kiosk Growth

The kiosk industry is rapidly growing, especially in North America. One can purchase a wide range of products from a kiosk Sunglasses, cell phones, and even computers can be bought at a kiosk. They are easy to set up and display items as well for the retailer. The following figure illustrates the current as well as the expected growth of kiosk retailers by 2009. By examining this figure, one can understand the major dominance the North American kiosk retail industry has and what great potential it has.

Figure 1: Worldwide Kiosk Installed Base and Projections, 2006-09

Research Method and Design

The research method used for this study was conclusive research. Conclusive research allows a decision maker to conclude, evaluate, and choose the best action to take for a given scenario. Causal research was then used to decide the cause and effect relationship between two of the variables. The cause is measured as an independent variable, and the effect is measured as a dependant variable. In this situation, high risk and low variety were the two variables being evaluated. This type of approach allows the researcher to decide on a conclusion. Causal research will not give a vague conclusion. A multi-item scale was used in this kiosk survey, which measures a range of opinions by a respondent. The scales used in this survey ranged from 1-7 and 1-9.

Each Market Research 400 group was given a specific scenario involving sunglasses purchased at a kiosk. Group 12 was assigned a regret/low variety survey. This written survey was handed out to various respondents to answer questions using their best judgment. The scenario read as follows:

Imagine that Joe is on the market for a new pair of sunglasses. He was just going to buy a new pair of sunglasses at a kiosk in his local mall. The kiosk he chose sells only four brands of sunglasses and about two different styles for each brand. He selected a suitable pair of sunglasses and purchased them from the kiosk. At the time, he was quite happy and satisfied with his purchase decision.

However, a couple of days later, the pair of sunglasses broke unexpectedly. He was quite upset and regrets his choice of retailer. Now, he feels he should have bought a pair of sunglasses from a different retailer instead of the sunglasses kiosk he chose.

Participants

The participants in this study were randomly chosen by the UNLV market researchers. Each researcher chose ten participants to give the survey to. The surveys were given to the respondents at their homes, work, or on campus. Most of the respondents were college students, family members as well as friends of the market researchers. The age range was 19-46 years of age. Also, there were 16 male respondents and 16 female respondents.

Survey Errors

There are certain factors that affected the way in which the respondents answered the market research survey involving kiosks. First of all, one major complaint from numerous respondents was the exact wording of the survey. People felt that they were answering the same question more than once and began to doubt their response to the question. They felt that is was in some way a trick question, and they began to overanalyze a basic question. Also, some respondents did not like the order in which the multi-item scales were set up. The fact that some scales were demonstrated in a 1-7 order and 1-9 flustered some respondents. There should have been consistency with the scale range. Also involving the set-up, several people wanted them to be demonstrated vertically as opposed to horizontally.

Defined Constructs

This survey was categorized by several different constructs. A construct is the characteristic in the survey that must be measured. It allows a researcher to develop a survey that is well organized. The following list involves the constructs used in the survey.

Section I:

1. Attitude to retailer construct (ATTITUDE)

2. Consumer empowerment (EMPOWERMENT)

3. Consumer regret (REGRET)

4. Consumer satisfaction (SATISFACTION)

5. Future impact (IMPACT)

6. Perceived variety (VARIETY)

7. Repurchase intention (REPURCHASE)

8. Manipulation Checks

a. Should answer “Yes”

b. Should answer “No”

9. Choice process satisfaction (CPS)

Section II:

10. Kiosk quality (KIOQUALITY)

11. Kiosk expectation (KIOEXPECTATION)

12. Kiosk risk (KIORISK)

Section III:

13. Variety seeking individual difference (VARSEEK)

14. Risk seeking individual difference (RISKSEEK)

15. Gender (M/F)

16. Year of birth

Literary Review

We started our research by initially researching the kiosk industry in general and found a lot of interesting material. The article Deck the Malls with Kiosks, by Patricia Norins, discusses the kiosk industry during the holiday season. It mentions that over the past 15 years, seasonal and temporary cart kiosks have grown into a $10 billion dollar industry. This was published by Specialty Retail Reports, a highly recognized publication. Today, about 95% of enclosed malls have a temporary retail program. During Christmas, this program brings malls 80% of there retail business.

There were quite a few interesting statistics listed in this article as well. Fifteen years ago, Hickory Farms had over 500 stores throughout the United States and Canada. Today, they have only 39 outlet stores, but they have grown to over 1,200 temporary stores. (Ginsburg) After three years of research, Avon opened 49 beauty centers in 1998 as a way to reach the estimated 20 million women who have never used their products. Over 90% of sales have been to new customers. Avon Ladies, the company’s main distribution network, have gained new leads too. The kiosks have helped them form new relationships with their customers. Consumers have found delight in the variety of novelties and specialty items available at kiosks. They have transformed the once unused passageways into retailing hot spots. (Ginsburg)

The article, Mall Kiosks, Some Shopping Observations, written by Ann Hartter, discusses the kiosk business. Today, there is a new look to the common areas of most malls. Malls are usually filled with the common mom and pop retailers, the t-shirts design vendor, and the hair accessory kiosks. The passageways have turned over a new look. The big named retailers from Dell computers, Bose, Lego, and Neutrogena are taking part in this .The companies are trying a new way to market to the consumer and the ability to turn a high profit. (Hartter)

In the article Kiosk Aren’t Just for Tchochkes Anymore, by Curt Hazlett, it is discussed that there can be much thought that comes with putting a kiosk together. In many malls, kiosks are seen as being identically uniformed independent carts to the untrained eye. However, they are very different in the way that they entice the consumer with the merchandise they sell. Many of these vendors believe that those kiosks that are brighter tend to be more interesting to the consumer. Also, as stated in the article, friendly employees also entice the consumer. Kiosk vendors have to rely on the constant flow of repeat customers as well as the positive word-of –mouth advertisement that comes from them. Furthermore, as a kiosk vendor, the placement of the cart is also an important part of its success. Kiosk retailers should choose a high-traffic area that targets more demographics like that of the food court. (Hazlett)

The Specialty Leasing Place, by Elaine Misonzhnik, refers to kiosks as Retail Merchandizing Units (RMU). These RMU’s have become integral to the shopping center industry since their introduction in the 1970’s. It is stated that they can generate 10 to 15 percent of malls annual revenues by capitalizing on the high traffic common areas. (Misonzhnik) Specialty leasing has grown into a $12 billion business today from $3 billion a decade ago, says Nancy Tanker, of Specialty retail Reports. (Misonzhnik) The rent for a RMU can range from 4,000 per month to as much as 10,000 during the holiday season. But having a RMU outdoors can leave them exposed to the elements as well as vandalism 24 hours a day. All these factors can double and triple the cost of an outdoor cart by comparison to one that is designed for enclosed strip mall. (Misonzhnik)

To some, it may seem that kiosk stands in the malls have faded out over the years. However, according to Specialty Retail Reports, Middle of the road at Huntington’s Walt Whitman Mall for Sharaz Azim.Long Island, kiosks retailers actually have grown to a $10 billion dollar industry, which is up $3 billion from 1996. (Solnik) While most of these kiosks are independently run by small business owners, there are also some dominating names that are moving into the market. (Solnik)

After we completed our research on the general kiosk retailing industry, we shifted our focus towards researching the behavior of men and women towards kiosk retailers as this seemed interesting to us. We found that there is consistent evidence in previous British and American studies that women and men relate differently to their material possessions. According to Dittmar, Beattie, and Friese, in the article, Object, decision considerations and self-image in men’s and women’s impulse purchases, it is classified that there are gender differences depending on the items purchased. They found that women listed more items of sentimental value, and men chose items that related to leisure and finance. (Dittmar, Beattie, Friese) When women were studied, it was also uncovered that they purchased because of emotional value and comfort, as well as items that may have symbolized a relationship with others. As for men, when they purchased items they referred to more use related, activity related and self expression. These items that men purchased were of leisure and finance such as sporting goods, power tools, and stocks. However, one can conclude that women seek value and identity with their purchases while men seek self oriented purchases. (Dittmar, Beattie, Friese)

With keeping in mind that we were assigned a regret/ low variety study, we wanted to investigate these two variables as they seemed important. In the study titled Why switch? Products Category-Level Explanations for True Variety-Seeking Behavior, by Hans, Wayan, and Inman, variety-seeking behavior seems at least a partially a product category of specific phenomenon, in which consumers may seek variety in one product category but not in another. (Hans) This study argues that variety-seeking behavior is a function of consumer’s individual perception of different products. It also mentions that those consumers who like high variety are more likely to engage in variety-seeking behavior. (Hans)

Variety-seeking in purchase behavior is defined as the tendency of individuals to seek diversity in their choices of services or goods as described in Barbara Kahn’s report Consumers Variety-Seeking among goods and Services. Variety seeking consumers are broken down into two categories: derived and direct. Derived was seen as a result of some other motivations that had nothing to do with or related to the desire for variety. Direct variety seeking behavior comes from intrapersonal motives which were caused by the desire for charge that other products posed. Some experiments have shown that price promotions have some affects on the decision to add variety in consumer’s purchases. By retailers using price promotions and sales promotions efficiently, they can manipulate the consumers’ variety-seeking behavior. (Kahn) This study also discussed that although the consumer may be seeking variety in their purchases, they may just be anticipating for one day. The next day, they might no longer feel the same about a particular item and thus choose a different item for purchase. As these consumers open themselves up for more variety, they are also anticipating unknown future purchases. This would suggest that retailers should provide consumers with a variety of products and services. With this, they generate new business, while at the same time retaining current customers. However, it is also important to note that even with high assortment; the consumer can still be unsatisfied if the items are similar and/ or unacceptable. (Kahn)

In the report Just Moseying Around and Happening Upon It versus a Master Plan: Minimizing Regret in Impulse Versus Planned Sales Promotion Purchases, written by Nancy Spears, it is stated that regret minimization may lead to either a risk-seeking choice ( making an impulse promotional purchase) or a risk-avoiding choice (following a master plan to make a planned promotional purchase). (Spears) The regret theory illustrates that people compare actual outcomes with what the outcome would have been if another alternative had been chosen. Regret in subjects surveyed was expressed as the experience when the non-selected alternative was better. They experienced enjoyment when the non selected alternative was worst. Regret can also occur when consumers deviate from their routine or usual way of doing things. (Spears) This issue is discussed in a later section as it will stand in relation to our findings.

In the article, Drivers of local merchant loyalty: Understanding the influence of gender and shopping motives, Stephanie Noble, David Griffith and Mavis Adjei, discuss the influences that merchants have on gender involving loyalty, price consumption, assortment seeking, and convenience. They argue that the culture of the United States supports women constructing their self as interdependent with others ( called interdependent self-construal), whereas men’s self-construals are independent, self-construal (i.e females) are to develop self-defining relations to maintain a connectedness with others via interpersonal affiliations, to groups, and to a community (Noble, Griffith, Adjei).

As the report goes on comparing price comparison and information attainment between the genders, a gender schema theory proposes that male and females learn differing behaviors as a result of gender-based schematic processing (Noble, Griffith, Adjei). These behaviors become a gender schema against their attitudes and behaviors. Furthermore, self-construal theory states that men have more individualistic goals then females. Based on these theories it can be argued that males achieve success in retail patronage by gathering information about products and making comparisons across retailers to get the best product/ price combination for themselves. (Noble, Griffith, Adjei). For instance, males would more then likely sit outside an electric store waiting for them to open after looking around and finding out that they have ten plasma televisions. They do this to receive gratification that they actually got one on sale.

As with females, they would more likely use shopping as a way to maintain interpersonal affiliations. In a retailing context, this suggests that shopping might afford women the opportunity for social interactions with sales clerks and other retail patrons (Noble, Griffith, Adjei). This then translates into the idea that women are more likely to find more satisfactions in the activity of shopping whereas males are to be more time conscious. So this tells researchers that women will be more likely to find regret or become unsatisfied in a product that they purchase because they shop more on impulse them males.

Research Questions and Hypotheses

After our initial brainstorming followed by our research, we developed three interesting research questions and the corresponding hypotheses. First, we wanted to determine the relationship between consumer risk seeking and consumer attitudes regarding kiosk retailers. We proposed that high risk seeking consumers would have a higher attitude towards kiosks retailers than lower risk seeking people. Therefore, we theorized:

RQ1: Do consumers who are more risk seeking, demonstrate a better attitude towards kiosk retailers?

H1: High risk seeking consumers have a higher attitude towards kiosk than lower risk seeking consumers.

As mentioned previously, our team was interested in the behavior of men and women regarding kiosk purchases when there is low variety. We suggested that females would have more regret as well as less satisfaction involving low variety than men and that women tend to seek more variety. More formally:

RQ2: What is the gender behavior in regards to kiosks purchases when there is low variety?

H2: Women have more regret.

H3: Women have less general purchase satisfaction.

H4: Women seek more variety.

We also wanted to discover if there are significant differences in the attitudes towards kiosks retailers between men and women. Here, we suggested men have a more favorable attitude towards kiosk than women. As such:

RQ3: Is there a significant difference in attitudes towards kiosks between men and women?

H5: Men have a more favorable attitude towards kiosk than women.

Data Analysis

Once we entered the data from our surveys into SPSS, we recoded the questions that were negatively keyed so that they would are all positively correlate. In our survey, question 9a, 10b and 11b were framed negatively. After we recoded these three questions, we checked for errors. One quick way to check for major mistakes is to run a frequency analysis on each variable. A frequency tells us, for each question, how many people responded “1,” how many people responded “2,” and so on. With this check, we did not find any errors.

Next, we calculated a measure of internal reliability called Cronbach’s alpha. This is a reliability coefficient based on the average covariance among items in a scale. We assume that items on a scale are positively correlated with each other because they are all tapping into the same construct; that is, they are all measuring a common entity. The average correlation of an item with all other items in the scale tells us about the extent of the common entity. Because alpha can be interpreted as a correlation coefficient, it ranges in value from 0 to 1.

One construct, pertaining to question 12, had an alpha of below .7. Specifically, it was .4. We checked the column of the output labeled “Cronbach’s alpha if item deleted” to see if the alpha would go up if we got rid of any items. However, this increased the alpha only by a miniscule amount. We were not able to determine what might be wrong with these items or why they might not be measuring what all the other items are measuring. Thus, we decided to not use question 12. All other constructs had a high alpha (.7 and higher) which is consistent with the fact that all scale items are measuring the same construct.

We also completed a manipulation check, which allows the researcher to dispose of data from subjects who do not conform to the experimenter’s perception of reality. Our manipulation check was performed on question 8 to ensure if the respondents answered “yes” on 8a and “no” and 8b. They were asked to circle whether: (a) Joe purchased the sunglasses at a kiosk or if (b) Joe did not purchase the sunglasses at a kiosk.

Next, we performed a median split to divide risk seekers into low and high risk seekers. Now, we were able to begin our analyses of the kiosk experiment data by conducting three independent samples t tests. We first compared attitude and risk seeking. Next, we evaluated regret and gender, satisfaction and gender, as well as variety seeking and gender.

Findings

Regret, Gender and low Variety

In this section, we will talk about the relationship behavior of men and women regarding kiosk purchases when there is low variety. We suggested that females would have more regret involving low variety than men. The specific research question and the associated hypothesis we proposed were:

RQ2: What is the gender behavior in regards to kiosk purchases when there is low variety?

H2: Women have more regret with low variety.

In order to prove H1, we used an Independent Samples t-test. The following two tables present the results of this test for the regret mean values for males versus females:

Table 3: Regret Mean Values for Males vs. Females

Table 3 displays the regret mean values for males versus females. The mean value for men is 5.08 compared to the mean value for females of 6.24.

Table 4: Independent Samples t-Test for Regret and Gender

As depicted in Table 4, there is a significance value for the t-test of .013. This low significance value indicates that there is a significant difference between males (M=5.08) and females (F=6.24) on their experiences of regret with kiosks purchases. We found that women indeed tend to have more regret with their kiosks purchases when there is low variety than men. Therefore, H1 was supported.

The reason behind these findings could be that men tend to hold less of a grudge and are most likely to justify their purchase choice. We found a lot of interesting comparisons between our findings and our research, however, we will discuss these in later sections.

Satisfaction, Gender and Variety

Here, we will extend our discussion on the relationship behavior of men and women regarding kiosk purchases when there is low variety. We proposed a second hypothesis and suggested that females would have less satisfaction involving low variety than men. The research question and the second associated hypothesis were:

RQ2: What is the gender behavior in regards to kiosk purchases when there is low variety?

H3: Women have less satisfaction with low variety.

Again, we employed an Independent Samples t-test in order to prove our hypothesis. The following two tables present the results of this test for the general purchase satisfaction mean values for males versus females:

Table 5: Satisfaction Mean Values for Males vs. Females

Table 5 displays the satisfaction mean values for males versus females. The mean value for men is 5.69 compared to the mean value for females of 4.73.

Table 6: Independent Samples t-Test for Satisfaction and Gender

Table 6 shows a significance value for the t-test of .059, indicating that there is a marginal significant difference between males (M=5.69) and females (F=4.73) on their experiences of general purchase satisfaction. This result shows that females have less satisfaction with low variety than males, thus confirming H2.

Variety Seeking and Gender

In this section, we will discuss our fourth hypothesis - the relationship behavior of men and women regarding kiosk purchases when there is low variety. To remind us, we proposed that women seek more variety than men. The research question and the third associated hypothesis were:

RQ2: What is the gender behavior in regards to kiosk purchases when there is low variety?

H4: Women seek more variety.

To prove H4, we also utilized an Independent Samples t-test. The following two tables present the results of this test for the general purchase satisfaction mean values for males versus females:

Table 7: Variety Seeking Mean Values for Males vs. Females

The satisfaction mean values for males versus females are presented in Table 7. The mean value for men is 5.69 compared to the mean value for females of 4.73.

Table 8: Independent Samples t-Test for Variety Seeking and Gender

Table 6 demonstrates a significance value for the t-test of .034. This points to a significant difference between males (M=5.41) and females (F=6.43) on their experiences of variety seeking with kiosk purchases. This result illustrates that females seek more variety than males, therefore proving H4.

In the following section, we will now give a detailed interpretation of our Independent Samples t-test results and how it relates to the findings of our research.

Interpretation and Summary

We used or tested, respectively, a questionnaire concerning consumer behavior towards kiosks retailers. To recap, let us evaluate Figure 2, which shows the mean ratings of regret, satisfaction as well as variety seeking in relation to gender:

Figure 2: Mean rating of Regret, Satisfaction and Variety Seeking in relation to gender

As this figure shows, with less satisfaction, there is obviously more regret. This, in turn, also relates to the fact that woman seek more variety and therefore experienced more regret as well as less satisfaction.

Regret and Gender

H2: Women have more regret with low variety.

When referring to Figure 2, it is obvious that females have more regret involving low variety than men. But what does it really mean to experience regret? As our research indicates, regret is also known as “Buyer’s remorse.” When the feeling of buyer’s remorse occurs, a consumer may feel a strong sense of regret about a previous purchase. The article, Object, decision considerations and self-image in men’s and women’s impulse purchases, discusses the regret men and women feel after buying a product. Dittmar stated, “When women were studied, it was uncovered that they purchased because of emotional value and comfort.” As theorized, these emotional women have a strong sense of their feelings. A feeling like regret will be easily recognized due to this. Women are not going to want to have regret after a purchase which is what the researchers have concluded.

Research also indicates that when people deviate from their conventional or ordinary way of doing things, greater regret is sure to follow (Dittmar & Drury, 200; Kahneman & Tversky, 1982). As we have proven with H4, women like more variety. However, in this situation the consumer was confronted with low variety. The fact that women shopped in an environment where there was low variety, caused them to deviate from their ordinary behavior. This, in turn, caused them to experience more regret. In contrast, men hold less of a grudge. Postpurchase, they are more likely to justify their purchase choice and thus exhibit less regret. This is consistent with our Hypothesis, H2, that women have more regret with low variety.

Regret, Satisfaction and Gender

H2: Women have more regret with low variety.

H3: Women have less satisfaction with low variety.

To remind us, we proved that women have indeed more regret as well as less satisfaction when there is low variety. Recent research indicates that situations toward which an individual holds highly accessible attitudes, are likely to matter more (Fazio, Powell & Williams; 1989), A highly accessible attitude, such as a women’s shopping experience, is likely to be activated from the memory automatically and is presumed to determine immediate perception of the object. It is a common perception that women have higher accessible attitudues towards shopping then men.

This is very interesting and relates to H2 as well as H3. One might argue that because women hold shopping experiences in higher accessibility then men, the sunglass purchase and the fact that they broke, mattered more to them. Therefore, as previously illustrated in Figure 2, women are likely to experience more regret as well as less satisfaction. In contrast, an attitude that is low in accessibility is less likely to be activated. Men hold their shopping experiences in lower accessibilty and thus the kiosk situation had less of an impact on them. Therefore, as we have proven, men had less regret and more satisfaction.

Variety Seeking and Gender

H4: Women seek more variety.

First, how would one define low variety? Basically, an assortment offers less variety if there are fewer items, if the items offers are similar to one another, or if the items offered are unacceptable in terms of preference. Variety-seeking in purchase behavior is defined as the tendency of individuals to seek diversity.

As we have proven with our Hypothesis H4, women seek more variety than men. But what is the reasoning behind that? According to The Journal of Retailing, “Men have been found to be more time-conscious than women (Grewal, 2003). As theorized, those who are “time-conscious” do not like to waste time. Many Americans act in this way. They want to make quick purchases. They do not want to put in all of that time to research. This can cause them to impulse buy from something at a kiosk. They may not realize the correct decision to make when they are shopping at a kiosk. There is not too much browsing involved since they are “time conscious.” Thus, they do not seek nearly as much variety as a woman because they do not want to spend the time to do so.

On the other hand, according to the same journal, women do like to browse. They spend more time researching. They shop more cautiously than men. For example, a woman may be in market for a brand new cell phone. She wants the best one for her money. This woman is more likely to go to various providers like AT&T, Sprint, and Verizon. She is going to do some research on all three. She may, in fact, speak to some sales representatives before she makes a purchase. However, a man will look at the same issue, and think more on the time factor. When do I need this by? He will go to the one familiar provider and that is that. There is not much variety being brought to him by his cell phone purchase. This is consistent with our Hypothesis H4: Women seek more variety.

Conclusion and Recommendations

To the Retailer

There are certain steps a Kiosk retailer can take to keep their customers satisfied. First of all, excellent customer service is a key factor in the service economy Americans live in. The kiosk retailers need to offer kind and friendly service while being knowledgeable about their products, in order to reduce regret. Customers want to have a pleasant experience while shopping at a kiosk especially if they are in a way hesitant to begin with. These sales associates need to leave a lasting impression to gain some repeat business. This cannot hurt the retailers’ profits.

Secondly, the kiosk retailers should have an appropriate return policy. If their product breaks, in a reasonable amount of time like two weeks, the retailer should take them back. Higher priced items should have a product guarantee. The consumer will then feel more comfortable when making a purchase at a kiosk. The retailer should use their best judgment.

Kiosk retailers should have some sort of loyalty program as well. A loyalty program will help the kiosk in gaining repeat business. Repeat business will lead to a bigger profit for the kiosk and it can also enforce some positive word of mouth by the customer.

As we have proven with H4, women seek more variety: In order not to marginalize female consumers, marketers and kiosk retailers should provide more variety in their product assortments, instead of competing on price

Lastly, kiosk should try to offer products of consistent quality with their price point. No one wants to get ripped off when they buy from a kiosk. The retailer should let their customers know what they are paying. Kiosks should not sell products with defects because this can lead to one unhappy consumer. Basically, kiosks should build consumer loyalty and strengthen their competitive positioning by clarifying their image and establishing a clearly differentiated value proposition.

To the Consumer

Retailers are not the only ones to blame when a purchase “goes bad” at a kiosk. The consumers too should take some issues into consideration. The consumer should do research before they make an expensive or risky purchase at a kiosk. Impulse buying can lead to some risky purchase decisions. They can easily go online and get some facts and ideas about what they need to buy. Also, if they do research it is likely that they sales associate cannot give them misleading information. The consumer will already have expectations about the product.

In addition, the consumer should set a budget for the product they are gong to buy. No one wants to spend more than they can afford. If the consumer has a budget in mind, it will help them when the sales associate tries to up sell their purchase. Sales associates can be quite convincing too, and they need to be aware of that before making a purchase.

Finally, the consumer needs to be confident with their purchase. If they do the research and set a budget, like previously stated, it can lead to confidence in a purchase. Their satisfaction level will increase. If this happens, it is likely that they customer will even suggest the product to a friend of family member. They are not going to want to return the product. Buyers’ remorse will be avoided, and consumers should always try to do so.

Appendix A

In the following section, we would like to briefly discuss two more finding: Attitude and Risk Seeking as well as attitude and gender with low variety.

Attitude and Risk Seeking

Here, we will now discuss the relationship between consumer risk seeking and consumer attitudes regarding kiosk retailers. To remind us, the specific research question and associated hypothesis were:

RQ1: Are people who have a better attitude towards kiosks more risk seeking?

H1: High risk seeking people have a higher attitude towards kiosk than lower risk seeking people.

In order to prove H1, we employed an Independent Samples t-test for the test variable attitude within the categories of high and low risk seekers. The following two tables present the results of this test:

Table 1: Attitude Mean Values for low Risk Seekers vs. high Risk Seekers

Table 1 displays the attitude mean values for low risk seekers versus high risk seekers. The mean value for low risk seekers is 1.86 compared to the mean value for high risk seekers of 3.38.

Table 2: Independent Samples t-Test, Attitude vs. Risk Seeking

Table 2 shows a significance value for the t-test of .005. This low significance value indicates that there is a significant difference between the two group means. Both mean values are very low, indicating that neither high risk seekers nor low risk seekers like kiosks. However, the results indicate that the higher risk seekers had a more positive attitude towards kiosks than low risk seekers. Thus, H1 was substantiated.

Attitudes, Gender and Variety

There was one last subject that was of interest to us, the one of attitudes and gender. We wanted to discover if there are significant differences in the attitudes towards kiosks retailers between men and women and proposed that men have a more favorable attitude towards kiosk than women:

RQ3: Is there a significant difference in attitudes towards kiosk between men and women?

H5: Men have a more favorable attitude towards kiosk than women.

In order to prove this hypothesis, we employed the Independent Samples t-test as well as bivariate correlations. However, the results proved to be of no significance. Therefore, H5 could not be supported.



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