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the importance of consumer decision making
importance of consumer decision making
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Introduction Consumer behaviour is defined as the behaviour that consumers undertake in seeking, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their personal needs (Nayeem 2012). Different consumer may have different choices in purchase that is dependent on various influences. High involvement purchase sets the best example of engaging in consumer behaviour in various aspects as complex buying behaviour occurs when the consumer is highly involved with the purchase and when there are significant differences between brands. This behaviour can be associated with the purchase of a something significant in value and meaning to consumer which could be risky (Tanner 2012). High involvement purchase could be deduced from both emotional and rational perspective. Evidently, there are various dimensions and avenues to high involvement purchase and thus this essay to focus on that.This essay will analyse the behaviour of a consumer who is an international Chinese student who is involved in a high involvement purchase of Chinese New Year gifts. Meanwhile, the influences of purchase situation, decision making process, internal & external influences on the student’s selection between different brands of lanolin cream will also be further analyzed in this essay. Purchase situation The circumstance of the decision maker in this purchase situation is an international student from China, Wei, who is a final year Economics student in Adelaide University and has been in Australia for 4 years. Wei is undertaking summer school course, therefore will miss the Spring Festival (Chinese New Year). Therefore, Wei intends to purchase gifts for his family in order to express his feelings and g... ... middle of paper ... ...d first, retail outlet second or retail outlet first, brand second and thirdly brand and retail outlet simultaneously. (Quester, etc, 2013, p.154) Retail outlet refers to what consumers see or hear descriptions of products in catalogues, in direct mail, in the various print media, on the internet or on the television or radio, and purchase products through mail, telephone or internet.( Quester, etc, 2013, p.155) In this case, Wei hears descriptions of lanolin cream from his friend. He chooses retail outline at first, and brand secondly. Wei goes to ‘Red Phoenix Gift Market’ in Chinatown. Compared with other retail outlets such as Chemist Warehouse and Priceline, he can find most Australian made gift products there. This is under store image which can give consumers’ perception of all the attributes suitable with retail outlet. (Quester, etc, 2013, p.158)
Consumer behavior is the ways that consumers exhibit in searching for, purchasing, using, evaluating, and disposing of, products and services. The study of consumer behavior as a separate marketing discipline all started when marketers realized that consumers did not always react as marketing theory suggested they would (Ekström, 2003). Many consumers rebel at using the identical products that everyone else used, instead they prefer differentiated products that they feel reflect their own special needs, personality and lifestyles.
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
Individual’s consumption pattern and purchase decision are strongly influenced by cultural norms and values of the society he lives in (H. S. Kim & Drolet, 2003; Oyserman, Coon, & Kemmelmeier, 2002; Sun, Horn, & Merritt, 2004). Since individuals in collectivist society pay more attention towards harmony of the gro...
Kruger (1999) agrees that “the moment when you think that you have discovered the ‘truth’ about yourself, is also a moment when power is exercised over you." As a result, when “I” go to shop, “I” probably regard as a subject, and get to know what “I” likely to be about the self. It is important to understand the consumers’ identification in term of looking insight of themselves. In this work, there will be given a belief introduce of how identity influence the consumers’ point of view of themselves with the process of purchasing. Then, there are individualism and collectivism identity, lifestyle identity, self-identity and social identity as well as gender roles identity are going to present with a few real advertising respectively before drawing
A consumer’s buying behavior is influenced by four major factors; cultural, social, personal, and psychological factors. These factors cause consumers such as myself to develop product and brand preferences. Although many of these factors cannot be directly controlled by advertisements and marketers, understanding of the impact they have on me and my purchasing behavior helps a me recognize my brand loyalty.
... of consumer behaviour, lays emphasis on the objectivity of science and the consumer as a reasonable and sensible decision maker. While, the interpretive point of view is in contrast to that of the positivist, in that it emphasises on the importance of the subjective meaning of the consumers individual experience, hence, it suggest that whichever behaviour a consumer performs is subject to diverse interpretations to a certain extent than just a single explanation to it.
Describe the potential for consumption-related decision making given the cultural context in question. Provide examples of the purchases that might be involved for consumers participating in this context. For example, a high school prom provides the opportunity for the consumption of apparel, cosmetics,
Researchers stated that there are five types of consumption. The first being Conspicuous Consumption: it is the consumption of products and services to satisfy physiological and security needs in large quantities more than the basic needs, to impress others. The first to touch upon and elaborate on this type of consumption is Thorstein Veblen. He said that consumption first appeared on the 2nd and 3rd generations of those who became rich after the industrial revolution. The second type on consumption is Symbolic Consumption. It is known as the phenomenon whereby people consume to reflect their sense of self-identity. An example to that is when people buy clothing items from premium brands not for their high quality, but for the purpose that these clothes reflect the person’s identity and self-image. This type of consumption is not about showing materialistic class but showing a certain identity of one’s self. Addict...
Thirdly, sometimes it affected by reference groups. Then, in the premise of meeting consumer demand for real or potential, and companies also can influence consumption. Therefore, consumer behavior has these features likes diversity, complexity, behavior congruence and navigation that is difficult to understand. What is more, Michael R. Solomon and Gary Bamossy (2010) believed that gender, ethnicity, sexuality, location, nationality and class are the factors which shape a person’s identity. Based on this, according to postmodernism views that identity is far more complex and pay more attention to the individual level (Michael R. Solomon and Gary Bamossy, 2010), this essay will explains the relationship between the need for identity and consumer behaviour by individual level and group level, then discuss the limitations of it in the end. For individual level, gender identity is crucial to understand consumers subjective feelings. For example, females have rich feelings, mood change dramatically and like to fantasy, in the purchase process they are not only vulnerable by emotional factors, but also affected by the purchase atmosphere, salesperson attitude and consumer behaviour of others. On the other hand, males consumer
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
This imminent change in the consumption pattern of Indian consumers is perhaps a direct consequence of the change in their attitudes in the first place. Increased exposure through media such as the television, foreign travelling for work or higher education, introduction and proliferation of the world wide web specially with regards to the havoc creating social networking sites, etc have cause the Indian population to embrace western culture more readily and as such the globalization of international brands has been welcomed by consumers in India with a new wave of approval and acceptance. This has also wholesomely had reflection on the cultural thought process of Indian consumers precipitating a new kind of demand altogether wherein they have begun to feel the need to possess such high end products which they feel are in some way indicative of social status.
There are various factors that could affect to a customer’s behavior. Based on their own knowledge and experiences, some customers could quickly make their purchase decision while the others are more involved in the making decision process. These types of customers lead to the concept of high and low involvement purchase which reflects how much information customer search for their making purchase decision or how much customers interested or involve in consuming a service or product. Consumer involvement refers as the level of interaction between companies that offers a product or services with their customers
In today’s competitive world where organizations looking for high profitability and market share, consumers have very important role. Companies are looking for capture consumers in order to get larger market share. For this reason organization developed a number of techniques and tools. One of such tools is consumer behavior which has been come from economic theory. Consumer behavior is mainly studying the factors and situations that can affect purchase decisions of consumers. Consumer behavior is being very important discipline of management sciences which help out to understand of customers’ decision making.
In this methodology, a case study is applied to define as a study based on interviews and some important questions to customers ZARA and H & M. This methodology is very important for graduate students as well as those who already have work experience to educate them to pursue careers higher to be more professional in conducting a study. Justification in this methodology aims to survey consumer behavior found in London, both in terms of consumption, prices, interest in the products, and also the attitude of the psychology of the buyer shirt (Susan et al. 2005). This study aims to look at a phenomenon that occurs in consumer behavior towards clothes. This study is very precisely made for the international businessman.
During the three weeks, the needs and motivation were a factor that influences my buying behavior. In the concept of consumer behavior, the Maslow’s hierarchy of need is a theory in the psychology and it is always been used to determine the level of needs of people. There are two types of need that are needed such as the innate needs and acquired needs. The innate needs are the basic needs in the daily life, such as the foods, drinks, air and shelter. The foods are the basic needs of us as we need to eat every day for surviving. I also need safety and security need so I park my car in the car park to protect my car for not been stolen or scratches by the others. Besides, the rational and emotional motives also affect the decision making of purchasing goods and service. The rational motive influences the consumer buying based on the size and price such as during buying the households. I prefer to buy the goods based on the price such as the households. The emotional motives are buying follow to the mood. For example, the place that I buy the foods are different every day. (Raaij & Wandwossen,