In the ongoing changing marketing environment, the understanding and learning to predict customer behavior is the key to a successful marketing strategy both domestically and globally (Quester., 2012). Consumer behavior refers to the behavior that customers perform in seeking, purchasing, evaluating and disposing of products and services that they expect will satisfy their needs (Shiffman and Kanuk). According to Quester., (2012), to survive in a competitive environment an organization must provide even more value to target customers than its competitors do. Many previous studies has demonstrated that the pattern of shopping behaviors of customer is likely to be influential by various aspects including personal characteristics, product specific and consumption situation (Quester., 2012). There has been a controversy regarding to whether individual difference variables or situational variables are better predictors of consumer behavior (Mattson and Dubinsky., 1987). Critical reviews of some prior research maintain that individual difference variables are inconsistently related to behavior and unreliable predictors of behavior. This report is mainly focus on the influence of situational characteristics on customer perception in purchase. Customer making decisions are driven by impulse when they conduct their shopping activities even in recession (Quester., 2012). Therefore, besides other important factors such as product characteristics and individual difference variables it is important for marketers to understand which situations influence the purchasing decision of customer and how those situational impacts used in marketing activities to market a specific product to target customers. The purpose of this report is first to discuss the situation affect the customer decision in purchase a product or service and identify the situational characteristic may influence Kate’s purchase decision. This report also integrate the concept of situational influence on customer behaviors and empirical findings to discuss and explain how these influence of situation used in marketing strategy and the interaction between the situation and a given product
Situational influence is defined as temporary condition or a set of factors that occur in the environment at a specific time or place (Assael.,1995). Situational variables refer to circumstances surrounding individuals when they react to stimuli relevant to their needs. Kakkar and Lutz., (1981) suggest that marketers need to evaluate customer behavior from a situational point of view to have a comprehensive understanding and accurate prediction of behavior in marketplace (cited in Nicholls, Roslow, Dublish, Comer., 1996 ). According to the research developed by Russel Belk, there are five types of situational influences which might alter a consumers perception in a purchase decision (cited in Questers.,2012). Situational influences are considered to be created by physical and social surroundings, temporal perspective, task definition and antecedent states. Physical surroundings are attributed to one of situational factors which cause change in the purchase decision of customer. Physical surroundings include location, atmosphere, aromas, sounds, weather and other elements of the physical environment. The effect of physical design and décor elements on customer perception has recognized by managers. Koler.,(1973) claim that the physical environment affect customer behavior and create the image of business specially in service businesses such as hotels, restaurants, banks, retail stores and hospitals. This is due to service is provided and consumed simultaneously. The customer in those circumstances often experience services by through the physical facility of the firm. This will result in the customer perception of the service experience. Berry and Clark (1986) suggest that customers are often attracted by the physical features of the firms. They also tend to seek for cue about the