Price cut is rated over other types of sales promotion. Kenning & Evanschitzky() and Thomas & Morwitz() mentions that it is a common knowledge that price affects a consumers buying decision. Impulse Purchase. Impulse purchase is a form of unplanned and sudden purchases. (David blogger.com () based on Rook ()) The research paper is a literature review of main trends, theories, and gaps in the field of buyer behaviour. Moreover, a framework of the factors that influence each step of the decision-making process will be presented and in this area will be suggested. The subject of buying decision-making was chosen due to the several reasons in a consumer 's decision-making. For example, Lau et al. () in his article mentioned that there were seven factors that influenced consumers’ brand loyalty towards certain brands. The factors were brand name, product quality, price, Design, store environment, promotion and service quality. For the purpose of the study literature review will focus on the following identified factors of brand loyalty namely brand trust, store environment, service and quality. Brand
Related Literature Review Of Consumer Decision Making | Bartleby
The topic of consumer behaviour is one of the massively studied topics by the researchers and marketers in the past and still being studied. Researchers show different reasons as to why consumer behaviour has been the topic of many academics and researchers.
One of the common views is that understanding consumer behaviour has become a factor that has a direct impact on the overall performance of the businesses Kotler and Keller, Another view suggests that understanding consumer behaviour has become crucial especially due to fierce competition in retail industry in the UK and worldwide Lancaster et al, This chapter will introduce some other areas of research background of consumer behaviour addressing the works of researchers and marketers.
Moreover, consumer decision making process, in particular, five stages of consumer decision making process will be discussed in detail. It is worth noting that consumer buying behaviour 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 Kotler and Keller, One of such studies of consumer buying behaviour has been conducted by Acebron et al The aim of the study was to analyze the impact of previous experience on buying behaviour of fresh foods, particularly mussels.
In their studies the authors used structural equation model in order to identify the relationship between the habits and previous experience on the consumer buying decision. They also found that the image of the product has a crucial impact on the purchasing decision of the consumer and further recommended that the product image should continuously be improved in order to encourage the consumers towards purchasing.
Another study conducted by Variawa analyzed literature review on consumer purchase decision influence of packaging literature review on consumer purchase decision consumer decision making process for Fast Moving Consumer Goods. The aim of the research was to analyze the impact of packaging for decision making processes of low-income consumers in retail shopping.
A survey method has been used in order to reach the research objectives. In a survey conducted in Star Hyper in the town of Canterville respondents participated. The findings of the research indicate that low-income consumers have more preferences towards premium packaging as this can also be re-used after the product has been consumed. Although the findings indicate that there is a weak relationship between the product packaging and brand experience.
Lee carried out study to learn the five stages of consumer decision making process in the example of China. The researcher focuses on the facts that affect the consumer decision making process on purchasing imported health food products, in particular demographic effects such as gender, literature review on consumer purchase decision, education, income and marital status. The author employed questionnaire method in order to reach the objectives of the research. Analysis of five stages of consumer decision making process indicate that impact of family members on the consumer decision making process of purchasing imported health food products was significant.
The author further explains this by the fact Chinese tradition of taking care of young and old family members have long been developed and marriage is considered to be extremely important in Chinese tradition. This reflects in the findings of the study that the purchase of imported health food products made by a person for the people outside the family is declined significantly by both male and female Chinese after they get married. Five Stages Model of consumer decision making process has also been studied by a number of other researchers.
Although different researchers offer various tendencies towards the definitions of five stages, all of them have common views as they describe the stages in similar ways. One of the common models of consumer decision making process has been offered by Blackwell et al Each stage is then defined by a number of researchers varying slightly but leading to a common view about what each stage involves.
This view is also supported by Neal and Questel stating that need recognition occurs due to several factors and circumstances such as personal, professional and lifestyle which in turn lead to formation of idea of purchasing. In the next stage, literature review on consumer purchase decision, consumer searches information related to desired product or service Schiffman and Kanuk, Information search process can be internal and external.
While internal search refers to the process where consumers rely on their personal experiences and believes, external search involves wide search of information which includes addressing the media and advertising or feedbacks from other people Rose and Samouel, Once the relevant information about the product or service is obtained the next stage involves analyzing the alternatives.
Kotler and Keller consider this stage as one of the important stages as the consumer considers all the types and alternatives taking into account the factors such as size, quality and also price.
Backhaus et al suggested that purchase decision is one of the important stages as this stage refers to occurrence of transaction. Purchasing decision can further be divided into planned purchase, partially purchase or impulse purchase as stated by Kacen which will be discussed further in detail in the next chapters.
Finally, post-purchase decision involves experience of the consumer about their purchase. The most noteworthy writers that serve as academic advocates of The Five Stage Model of consumer decision making include Tyagiliterature review on consumer purchase decision, Kahle and Close Blackwell et al.
All of these models are analysed in great detail in Literature Review chapter of this work. It has been established that the consumer buying behaviour is the outcome of the needs and wants of the consumer and they purchase to satisfy these needs and wants. Although it sounds simple and clear, these needs can be various depending on the personal factors such as age, psychology and personality.
Also there are some other external factors which are broad and beyond the control of the consumer. These factors have been classified into different types and categories in different ways by different authors, literature review on consumer purchase decision. For instance, Wiedermann et al classified them into internal and external factor. On the other hand, Winer divided them into social, personal and psychological factors. Despite the fact that they have been classified into different groups by different authors they are similar in scope and purpose Rao, There is a wide range of factors that can affect consumer behaviour in different ways.
These factors are divided by Hoyer et al. Situational factors impacting consumer behaviour may include location, environment, timing and even weather conditions Hoyer et al. Literature review on consumer purchase decision order to benefit from situational factors major retailers attempt to construct environment and situations in stores that motivate perspective customers to make purchase decision.
Range of available tools to achieve such an outcome include playing relaxing music in stores, producing refreshing smells in stores and placing bread and milk products in supermarkets towards the opposite end of stores to facilitate movement of customers throughout the store to make additional purchases etc.
Personal factors, on the other hand, include taste preferences, personal financial circumstances and related factors. The impact of personal factors on consumer decision-making is usually addressed by businesses during market segmentation, targeting and positioning practices by grouping individuals on the basis of their personal circumstances along with other criteria, and developing products and services that accommodate these circumstances in the most effective manner.
According to Hoyer et al. Targeting members of society perceived as opinion leaders usually proves effective strategy when marketing products and services due to the potential of opinion leaders to influence behaviour of other members of society as consumers, literature review on consumer purchase decision.
Lastly, cultural factors literature review on consumer purchase decision consumer behaviour are related to cross-cultural differences amongst consumers on local and global scales. Marketing mix or 4Ps of marketing is one of the major concepts in the field of marketing and each individual element of marketing mix can be adopted as an instrument in order to affect consumer behaviour.
Core elements of marketing mix consist of product, price, place and promotion. Marketing mix has been expanded to comprise additional 3Ps as processes, people and physical evidence. Product element of marketing mix relates to products and services that are offered to customers to be purchased. Products can have three levels: core, actual and supporting products. For example, core product in relation to mobile phones can be explained as the possibility to communicate with other people in distance.
Actual product, on the other hand, relates to specific brand and model of a mobile phone, whereas augmented product may relate to product insurance and one-year warranty associated with the purchase of a mobile phone. Price represents another critically important element of marketing and four major types of pricing strategies consist of economy, penetration, skimming, and premium pricing strategies East et al.
Place element of marketing mix relates to point of distribution and sales of products and services. Advent of online sales channel has changed the role of place element of marketing mix to a considerable extent. Promotion element of marketing mix refers to any combination of promotion mix integrating various elements of advertising, public relations, personal selling and sales promotions to varying extents Kotler, Processes, on the other hand, literature review on consumer purchase decision, refer to business procedures and policies related to products and services.
For example, integration of a greater range of payment systems such as PayPal, SAGE Pay and Visa in online sales procedures may have positive implications on the volume of sales by creating payment convenience to customers. People element of marketing mix is primarily related to skills and competencies of the workforce responsible for customer service aspect of the business.
Importance of people element of marketing mix in general, and providing personalised customer services in particular is greater today than ever before. Physical evidence relates to visual tangible aspects of a brand and its products. Bagozzi, R. Backhaus, K. Hillig, T. and Wilken, Literature review on consumer purchase decision. East, R. Hoyer, W. and Lee. Kahle L. and Close, A. Meldrum, M. Neal, C. and Pettigrew, S.
Perugini, M. Rose, S, literature review on consumer purchase decision. and Samouel, P. Schiffman, L. and Kanuk L. Wiedmann, literature review on consumer purchase decision, K. and Siebels, A. Winer, R. Category: Consumer Behaviour. Tags: Retail.
Understanding Consumer Purchase Decisions
, time: 1:44(PDF) Consumer Buying Behaviour – A Literature Review | Chandrakumar Kathirvel - blogger.com
The research paper is a literature review of main trends, theories, and gaps in the field of buyer behaviour. Moreover, a framework of the factors that influence each step of the decision-making process will be presented and in this area will be suggested. The subject of buying decision-making was chosen due to the several reasons The current literature on consumer online purchase decisions has mainly concentrated on identifying the factors that affect the willingness of consumers to engage in internet shopping. In the domain of consumer behaviour research, there are general models of buying behaviour in a consumer 's decision-making. For example, Lau et al. () in his article mentioned that there were seven factors that influenced consumers’ brand loyalty towards certain brands. The factors were brand name, product quality, price, Design, store environment, promotion and service quality. For the purpose of the study literature review will focus on the following identified factors of brand loyalty namely brand trust, store environment, service and quality. Brand
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