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the consumer decision making process
the consumer decision making process
importance of Consumer Decision Making
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For companies to be able to market products or services effectively, an understanding of how consumers behave and make decisions is necessary (Poon and Joseph, 2001). There are several theories that relate to this area, including economic theories as well as psychological theories. Earlier studies in theories concerning consumer behavior were developed through economic theory, for example the conception where consumers advance rationally to make best use of their satisfaction in the process of buying. More recent research shows that consumers are influenced by different types of reference groups, such as family, friends, advertisers and role models. Terms like impetuous purchase, mood, situation and emotion are applied more commonly in concerns concerning the behavior of consumers. All of these factors together form a complete model of consumer behavior that portrays both the cognitive and emotional aspects of consumer decision-making (Solomon et al., 2009). Assael (1994) explains consumer behavior as the process of recognizing and assessing various components of a purchase and further explains that there are two wide influences that decide consumer’s preferred choice. Firstly, the individual consumer’s wants, awareness of brand distinctiveness and consciousness to alternatives are of significance in consumer decision-making. Other factors which affect the brand choice are the consumer’s demographics, peer pressure, lifestyle and personal characteristics. Secondly, the environment has importance in consumer behavior, which consists of culture, social class and various groups. Assael (1994) also describes the reason why information about consumer behavior is imperative for a company like ZARA to be aware of, which can thereby imp... ... middle of paper ... ...tomers’ queries in time. Being responsive implies a company should be accessible and willing to look into clients needs within the shortest time possible. ZARA has achieved this since its products were shipped directly from the central distribution center to well-situated, good-looking stores twice a week, doing away with the requirement for warehouse and keeping inventories low (Christopher et al., 2004). Companies and business ought to always put themselves in their customers’ shoes and endeavor to get their perceptions and their thoughts about the products provided the ‘given company. This quality of being compassionate is very imperative and helps in motivating customers. It involves listening keenly and asking the pertinent questions, speaking customers’ language, and tailoring products to satisfy or meet the customer the best way possible (Niinimäki, 2010).
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.
Over the decades, three key areas of involvement have been identified to be with advertising, product and purchase. Of these, this paper will be examining purchase involvement which is generally described to be relating to level of interest in the purchase process (Beatty, Homer, and Kahle, 1988). The buying process is generally regarded with the following stages: need/problem awareness, information search, and evaluation of alternatives, purchase and post-purchase experience (Baker, 2002)
EVALUATION OF ALTERNATIVES AND PURCHASE DECISION: For Zara the main stages would be evaluation of alternatives and purchase decision because apparel is something based on taste and preferences of individual, fitting and availability, the consumer will go to the competitor store if they don’t find what they are looking for this is where a marketer should be aiming at, but Zara does it best by getting the trend at the earliest to the store and by their lip to rack customization strategy. Zara has high brand loyalty because they pricing policy caters to upper middle class and above but during discounts their pricing makes it affordable to the middle class as
Consumer Behaviour is crucial and an important part of marketing strategy. Organizations have to understand their customers, build strong relationships, provide necessary information about the products and services and stay close to them. Many successful companies have recognized the importance of consumers and have sophisticated approaches and detailed data from which to develop organizational and marketing strategies. Consumer behaviour means personal thoughts and feelings, people attitude, trust and experience, the actions they perform in consumption process and also all the things that can have an influence the attitudes. It is important to understand that consumer behaviour is dynamic, needs interactions and exchanges.
The second step is very crucial because the consumer’s decision can come from their past experience or memories and also from their friend or family members. Therefore Zara has to focus to every factor and perform well in all fields. Zara has to focus on delivering outstanding customer service because it will help in increasing the number of repeat customers and if the customer’s experience is good then they will speak well about Zara to their friends and family members which will help in increasing the number of new customers. Zara also need to make sure that its other factors of outside environment such as fashion blogs, advertisements, magaz...
A consumer’s buying behavior is influenced by cultural, social, personal and psychological factors. Cultural factors have the broadest and deepest influence for consumers when making a purchase.
Zara’s Vision: “Zara is committed to satisfying the desires of our customers. As a r...
From the moment a consumer engages in a transaction, emotions are used to determine purchase choices and satisfaction. The way an advertisement makes an individual feel, or the display in a store, provokes an emotion to promote the consumer to purchase that item or service. However, emotions are not limited to the initial transaction. After the transaction is completed, emotions determine the levels of satisfaction a consumer has towards an item or service. If the emotional benefit is equal to the expected results, the consumer will be satisfied, however, if the product or service does not hold to its expected standards, the consumer will not be satisfied and may discontinue doing business with the organization. Therefore, understanding emotions
2. Today marketers can collect and analyze data about consumer behavior, one person at a time; this is the relationship approach to marketing.
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.
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.
In today’s business brand image plays an important role to market the brand. Now whenever a consumer buy a brand he always observe its image. The brand image is force which is at top of the mind and then consumer likes to buy that brand. Before buying any brand consumer are countered by many psychological situation than they select the brand according to that situation, every brand has different image in consumer mind. Brand A has good image in one consumer mind but on other hand the brand A does not create well image on other consumer it effect the behavior of every individual. The purpose of the study is to inspect the effect of brand image on consumer behavior among the people of Karachi. We will find out that the brand image has
In an era of rapidly growing globalization, marketing managers are faced wide range of challenges and opportunities in developing a suitable marketing plan and strategy for customers of different geography and characteristics. Marketing strategies may contain site for production unit, mode of entry and communication strategies to acquire the customer intention. On the other hand consumers have more knowledge of products and are well aware of variety of domestic as well as foreign products and brands (Huang; Phuan and Lin, 2010). Successful marketing strategies depends upon the harmonization between the product attributes and customer identities like attitude, characteristics, value, life style and social role (Papadopoulos and Cleveland, 2010). Another important challenge for marketing management is to understand the bases on which consumer take decision between different available alternatives (Huang; Phuan and Lin, 2010). So it is important to understand how consumer identities affect consumers purchase intention regarding different choices available.
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