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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.
In the essay, “College Consumerism Run Amok” authored by Kevin Carey describe how colleges are careless with their money. Throughout the essay, Kevin Carey explains why normal people think the average price of college tuition has risen across the United States. People believe college tuition is rising because students demand colleges to have “creature comforts”, such as luxury dorms, a fully operational gym, and a climbing wall. Also, that the creation for “creature comforts” in colleges has caused academic standards to decline. Yet, colleges market to students with these amenities instead of showing students comparable statistics: the quality of teaching, scholarships, and academic environment. Kevin Carey, in the end, sums up his idea with
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.
Chinese-Americans authors Amy Tan and Gish Jen have both grappled with the idea of mixed identity in America. For them, a generational problem develops over time, and cultural displacement occurs as family lines expand. While this is not the problem in and of itself, indeed, it is natural for current culture to gain foothold over distant culture, it serves as the backdrop for the disorientation that occurs between generations. In their novels, Tan and Jen pinpoint the cause of this unbalance in the active dismissal of Chinese mothers by their Chinese-American children.
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...
Holidays have always been known to affect our consumer culture for many years, but how it all began eludes many people and very few studies have been completed on it. Even though some say that the subject is too broad to precisely identify how holidays, especially Christmas, directly affect our market, I have found that people’s values, expectations and rituals related to holidays can cause an excessive amount of spending among our society. Most people are unaware that over the centuries holidays have become such a profitable time of year for industries that they now starting to promote gift ideas on an average of a month and a half ahead of actual holiday dates to meet consumer demands.
... 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.
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
There are many situational factors that can affect the purchasing behavior of a consumer. Situational influences “can be defined as all the factors particular to a time and place that a demonstrable and systematic effect on current behavior” (Peter & Donnelly, 2013). In other words, situational influences are
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.
While many people take joy in the spirit of giving during the Christmas season, the truth of the matter is that Christmas shopping is often associated with a substantial financial burden that affects many individuals. This is certainly true for many with a large family or group of friends that exchange Christmas gifts on a regular basis. The Christmas season can also become a financial challenge for anyone who feels obligated to purchase extravagant gifts for every person on their Christmas list.
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.
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
While researchers can determine consumer behavior quite easily, it is almost impossible to get accurate and reliable data on why people buy what they do. How in the world can we figure out why consumers make the decisions in purchases they make, when we can only predict motives? Well, everything tends to be linked to a psychological trait that can help define the behavior of consumers.
What is a consumer culture? In the late 19th, early 20th century, a new phenomenon arose. Along with the development of industrial advances and urbanization of the emerging American culture was the growth and subsequent dominance of the “consumer culture”. Consumer culture is a term that goes hand and hand with the American way of life today, but in those days it was a new and unique experience.