...Understanding consumer behaviour is fundamental to marketing. For this reason, a lot of research is underway to develop a wider understanding of the customer decision-making process in an increasingly complex market context {{57 Lye, Ashley 2005;}}. 2.1 VW Golf Buy a car is an extended problem-solving decision because it is a high-involvement purchase and requires a substantial amount of effort, extensive research and a meaningful evaluation of alternatives {{59 Solomon, Michael 2006;}}. According to Kotler (2009), the consumer decision-making process involves five steps that consumers move through when purchasing a good or a service. Firstly, when a problem recognition advances, the consumer becomes aware of his desires since he compares his actual condition with the ideal one, this process is the core aspect in motivating to purchase {{59 Solomon, Michael 2006;}}. Moreover, consumer behaviour is influenced by both internal and external stimuli like social, cultural, personal and psychological included gender, income, urban location, education, children or other characteristics. The potential buyer might have realised that the vehicle he owns is not meeting his needs anymore because it is old; it does not reflect his new lifestyle, or there is a recent and better model on the market {{58 Prieto, Marc 2013;}}. So his particular unfulfilled need is a compact family car, fuel-efficient, safe, comfortable, spacious and with a price range between £17.000-£23.000 {{60 Car 2015;}}...
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...Understanding consumer behavior is fundamental to marketing. For this reason, a lot of research is underway to develop a wider understanding of the customer decision-making process in an increasingly complex market context (Lye, Shao, et al. 2005). VW Golf Buying a car is an extended problem-solving decision because it is a high-involvement purchase and requires a substantial amount of effort, extensive research and a meaningful evaluation of alternatives (Solomon, Bamossy and Askegaard 2006). According to Kotler (2009), the consumer decision-making process involves five steps that consumers move through when purchasing goods or a service. Firstly, when a problem recognition advances, the consumer becomes aware of his desires since he compares his actual condition with the ideal one. This process is the core aspect in motivating to purchase (Solomon, Bamossy and Askegaard 2006). Secondly, consumer behaviour is influenced by both internal and external stimuli such as social, cultural, personal and psychological which includes gender, income, urban location, education, children or other characteristics. The potential buyer might have been realised that the vehicle he owns is not meeting his needs anymore because it is old; it does not reflect his new lifestyle, or there is a recent and better model on the market (Prieto and Caemmerer 2013). So his particular unfulfilled need is a compact family car, fuel-efficient, safe, comfortable, spacious and with a price range...
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...since this may help companies to formulate reasonable marketing strategy and boost sales. This essay will explore how those virtual social networks affect people when they make buying decisions. It is undeniable that social networking sites have an enormous impact on consumer decision-making, since they help to stimulate consumers’ potential needs and purchasing desires (Baskin, 2010). Many companies take advantage of sophisticated media technologies and promote their products on online communities in the form of texts, pictures and videos. Consumers can have a better understanding of the products and therefore grow interests in these products (Hua, Mei& Hanjalic, 2011). This is particularly the case for those customers who do not have a clear purchasing intention and are likely to buy a product on impulse; they are more likely to be attracted by what businesses post online and be motivated to buy. Another point to note is that social media have a large impact on the information seeking step of the consumer decision making process. Many companies organise interactive activities and communicate with end-consumers directly in virtual communities. This means that businesses build up a stronger relationship with netizens and increase customer involvement, which helps to win consumers’ confidence ultimately...
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...HOLIDAY DECISION MAKING: PROCESS OF LEISURE DISCOVERY AND ADAPTABILITY. The following essay attempts to discuss and critically evaluate the traditional problem solving, cognitive model of consumer decision making process with that of holiday decision making. The writing begins with the introduction phase which discusses the traditional model of consumer decision making process. The following subsection discusses the sequential stages involved in the traditional consumer decision making, following is a comparative analysis between holiday decision making and traditional consumer decision making based on the stages involved in traditional consumer decision making. A conclusion that summarizes this study follows thereafter. I. INTRODUCTION “Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, people and ideas overtime.” (Wayne D. Hoyer, Deborah J. Maclnnis 2008). This means that as much as the consumer will purchase a certain product e.g. soap, based on his preference of brands, he may also purchase a product such as a book just because it has been written by a popular author. Consumer decision making is about market choice behavior where consumers must make a decision between two or more competing alternatives, and thereafter decide on whether to purchase the alternative. The consumer decision making process is the stages that a consumer goes through in order...
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...Holiday decision-making: an adaptable and opportunistic ongoing process Name: Institution: Course: Tutor: Date: Identify and discuss how holiday decision-making as described in the case, is different from the traditional problem-solving models of consumer decision-making Holiday decision-making process is different from the traditional problem-solving models of consumer decision making. This is because holiday decision-making model does not require fixed sequential stages that are required by traditional problem-solving models. Administrative factors play an imperative role when deciding time and choice of holiday decision-making process (Schermerhorn & Osborn, 2011). The typical factors that mostly influence the holiday decision-making process are levels of involvement, situational factors, anticipation, nostalgia and daydreaming. On the other hand, this is very different from traditional decision-making process that is well sequentialized and structured. In this model, the need for a specific service or product is identified and information search and other alternatives are evaluated. The consumer is further led towards purchasing a product and there after placing a purchase evaluation (Moore & Simmons, 2010). In the traditional consumer decision-making, the method of searching for information is well structured and it is either external, internal or both of them. Information collection process in the holiday decision making is an ongoing and...
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...Decision Making: Decision making is an art and a science which has been studied over generations. The secret of marketing lies in learning what the customer wants and how to influence the customer’s decision making process so that he buys our product above competition. Behind a simple decision making process, there are many thought processes which influence the decision making. A buyer may take an emotional, spur of the moment decision, or he may take a well thought out and researched decision. Based on his observation, different processes can be defined for decision making. Decision making mainly depends on the involvement of the customer. There are high involvement products and there are low involvement products. Similarly, there are consumer products and industrial products. Involvement in industrial products like automobile (BMW) will generally be higher as compared to commercial products because the amount of investment in industrial products is also huge. Marketers must consider how consumers decide to buy their product. Consumers use nominal, limited, and extended decision making. Watch this video to learn more about the different types of consumer decisions. Consumer Decisions and Strategy In order to successfully reach their target market, marketers must have some idea of how much time and effort consumers will put into a purchase decision. For BMW the business personalities, high officials are the target market but decision sometimes depends on their wives...
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...CHAPTER I1 TEXTILE INDUSTRY AND CONSUMER BEHAVIOUR In an environment of competitive market, the success of every industry largely depends on how precisely it can understand the target consumers. Because, such an understanding is the sole means to translate the needs and wants of the prospective consumers into products or services. Regarding textiles, understanding consumer is the nucleus of its production and marketing, as clothing is the manifestation of the behavioural aspects of the wearer in its totality. To make it more clear, the decision regarding buying and using textiles is the reflection of the rational behaviour of consumers. The amazing and amusing aspect of the rational behaviour is its 'dynamism' which is conspicuous because of its magnitude. It is worth noting here the opinion of Michael De Montaigne 'There never were in the world two opinions alike, no more than two hairs or two grains: the most universal quality is diversityl(Montaigne, Michael De, 1915). The dynamism of rational behaviour postulates the,formulation and the reformulation of approach, outlook or perception in resdLct of every sphere of human activity including consumption. A sagacious marketer, therefore, has to convince himself that his products / services and sti,ategies are in line with the dynamic marketing environment. 'Marketing is the 'whole business' from the viewpoint of its final result, that is, from the consumer - point- of- view' (Drucker, P.F. 1973). Unless a deliberate ...
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...of Electronic Word- Of-Mouth and Social Media on Tourists Decision-Making Process in Deciding Tourism Destinations Helen Pham ( Pham Thu Hien) Diploma 2 Table of Contents Chapter 1 Introduction........................................................................3 Chapter 2 Literature Review................................................................3 2.1 Theorical Framework.......................................................................3 2.1.1 Social Media....................................................................................4 2.1.2 The eWOM ( Electronic Word Of Mouth)…………………………………………………….5 2.1.3 Decision-Making Process...................................................................6 2.2 The influence of Social media and electronic word of mouth on consumer decision-making process of Tourism Destination……………….8 2.2.1 The Impacts of Social Media on Tourists’ Decision-making Process of Tourists..................................................................................................8 2.2.2 eWOM ( Electronic Word-of-mouth) effect in the tourist purchase decision making process on destination of choice……………………………………………………………..9 Chapter 3 Conclusion and Recommendations……………………………….11 References…………………………………………………………………………………12 List of Figures: Figure 1: Isra Garcia (2010) Social Media Integration Theory Model Figure 2: Kotler (2005) Decision-making process model Figure 3: Degree of trusts in advertising (Nielsen...
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...FACTORS AFFECTING CONSUMER BUYING BEHAVIOR. OVERVIEW The discussion in this part focuses on the critical literature review on the study of the factors affecting consumer buying behavior. Matters addressed in this discussion are, introduction on the relevant terms, significance of the consumer buying behavior to performance of business, theoretical and empirical literature reviews on the study as well as the conclusion which contains what has not been done by other researchers. INTRODUCTION Consumer Buying Behavior is the tendency of consumers to buy products from a company. It determines the various factors that influence a consumer to make a decision of buying the company’s products. Buyer Behavior is a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants Consumer buying behavior has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers It is worth noting that consumer buying behavior is studied as a part of the marketing and its main objective it to learn the way how the individuals, groups or organizations choose, buy use and dispose the goods and the factors such as their previous experience, taste, price and branding on which the consumers base their purchasing decisions. We study consumer buying behavior...
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...Marketing is the process of promoting a product or service to be sold to the consumer and keep it selling indefinitely. This assignment will cover the different aspects of marketing from the purchase decision making process that consumers go through, to the theories and factors that influence the consumer’s behaviour when making a purchase. It will also evaluate the relationship between brand loyalty, corporate image and repeat purchasing and how they are all related. When it comes to marketing, the most important factor that any business will need to consider is itself. When selling a product or service, the business will need to ensure its viable, otherwise it could lose the company money. To ensure this doesn’t happen, any business will have to analyse their markets and the different buyer behaviour of different consumers during the purchase decision making process. This is the process that a consumer goes through when purchasing a product or service. It consists of five stages, need recognition; information search; alternative evaluation; purchase decision and post purchase decision. Need recognition or problem identification is the first stage in the purchase decision making process. The consumer has identified that there is a need that needs to be fulfilled. This need has either been triggered by internal or external stimuli. Internal stimuli are the physiological needs felt by the consumer, such as hunger, tiredness or thirst. External stimuli are the advertisements...
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...C H A PTE R CONSUMER BEHAVIOUR AND TARGET AUDIENCE DECISIONS 3 Chapter Objectives • To understand the consumer decision-making process and how it varies for different types of purchases. • To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion. • To understand the similarities and differences of target market and target audience. • To understand the various options for making a target audience decision for marketing communication. Marketers Seeking 50-Plus Consumers Nintendo is famous for its video games. DaimlerChrysler features a wide selection of car brands. Tabi is known for its classic women’s clothing. While seemingly unrelated, these brands have recently shared a similar strategy. As these established companies expanded beyond their current customer base, each brand attempted new marketing communication programs containing a more emotional message aimed at the 50-plus demographic. The 50-plus crowd not only is a sizable market, but also is a very lucrative one; they control 55 percent of all discretionary spending in Canada due to their relatively high net worth. And while the brands all looked toward the fifty-plus market, additional segmentation based on an understanding of consumer behaviour revealed subtle differences in their approach. For Nintendo, the saturated youth market proved to be a no-growth avenue. With industry sales hitting the billion-dollar level...
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...Consumer Decision Making According to (Consumer decision making process, 2010) Consumer decision making is the process of choosing between two or more alternatives; consumer decision making may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option, goods, services, organizations, people, places, and ideas that will best addressing their current need. Sometimes consumers go through these stages of gathering and processing the information without even realizing that they are going through the processes. (Alet, 2001), states that Consumer behaviour and consumer decision-making have become prominent research topics in the various fields of consumer science in recent years. Consumer Decision Making pertains to making decisions regarding product and service offerings. There are different consumer decision making models such as Bettman's Information Processing Model of Consumer Choice, the Howard-Sheth model of buying behavior, Kotler model and the Nicosia model. The Engel, Kollat & Blackwell (later Miniard) consumer decision making model will be looked at for the purpose of this research. Engel, Kollat & Blackwell (later Miniard) consumer decision making model According to (Sahney, 2005), the Engel, Kollat and Blackwell Model, also referred to as the EKB model was proposed to organize and describe the growing body of knowledge/research concerning consumer behavior. A comprehensive model, it shows the various components...
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...years. The theory, originally coined by Hebert Simon surrounded the limitation of humans to process the amount of information available to make a logical, economic decision and the consumer would therefore, settle for something that satisfyingly sufficient, or ‘satisfice’(Simon 1955). Furthermore, the theory expanded over time to also include mans use of heuristics to simplify cognitive effort in the decision making process (Simon and Newell 1972) and it was argued that ‘logical and economic’ decisions were never reached by humans due to emotions and judgement controlling the decision making process and causing a range of biases and errors (Tversky and Kahneman 1986). The theory identified that humans would use these heuristics, such as rule of thumb or an estimation, to find something that is satisfactory to their needs rather than making the ideal economic decision. I agree with the notion that the world is ‘too complex for people to solve problems by employing strict logical rules and comprehensive thought processes’ (Simon 1955) and am also of the belief that humans will rely on heuristics to make the cognitive process more straightforward. Rational Consumer Choice Rational consumer choice theory has been around for many years and stems from the ideal that consumers act in a ‘rational’ fashion when making economic decisions. Not as complex as strict rationality, rational consumer choice considers some of the objections to the aforementioned theory and alters them accordingly...
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...HOW PEOPLE MAKE ECONOMIC DECISIONS How People Make Economic Decisions Abstract People make decisions every day based on day-to-day activities but what actualy drives the individual decision-making process. Tradeoffs, opportunity cost, margins, and incentives are the four principles of individual decision making process. The following paragraphs each of the four principles of the decision-making process. This paper also explains how the principles of economics affect decision-making, interaction, and the economy. Organizational Trends The four principles of decision-making are tradeoffs, opportunity costs, margins, and incentives. A tradeoff is the sacrificing of an item to gain something of greater value to an individual. Opportunity cost is what an individual give up to gain the new item, for example some students sacrifice their weekends or free time to gain a college degree. Margins is the next principle, margins are small changes to a plan of action. The last principle of individual decision-making is incentives. Incentives are anything that encourages or promotes a change in person’s behavior (Bauman, 2002, p.1-5). People make decisions everyday in which they compare the marginal benefits to the marginal cost. A few years ago the price of fuel reached a record high. These fuel prices caused consumers to stop purchasing gas guzzling SUVs and owners were even trading them in for environmentally friendly hybrids. Consumers also relocated closer to...
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...Consumer buying process As consumers, the process nvolved in our decioin making process is a great and crucial influence to our purchase decisions. According to belch et al 2012, there are 5 fundamental stages that us as consumers go through when purcgasing a product or a service. By understanding this processes marketers inturn complement each stage with corresponding psychological aspects thus in a way guiding our product awareness to our customer loyalty. These five stages factor in two of the service buying decision making process buying models.i.e 1. The howard and sheth model 2. Kotlers buyer black box model The following are the stages for a consumer during the decision making process if one wished to acquire a new alarm system. Problem recognition The first stage would be problem recognition. This is the initial stage when a consumer perceives a need and becomes motivated to solve the problem. In this case for instance, the consumer realizes that the rate of insecurity in a certain neighbourhood has drastically increased thus perceiving the need that a an alarm system is necessity for their house. As mentioned earlier each stage has corresponding aspects that are used by marketers to get consumer attention in terms of loyalty and interest. The corresponding psychological aspect for problem recognition is motivation. Motivations are internal impulses that when stimulated initiate some type of response. Motivations can influence a consumers decision making process...
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