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Literature review on purchase decision

purchase decision literature review

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Many writers agree that attitude is an evaluation. Attitude can be the most important factor in consumer decision process because they theoretically conclude that a consumer evaluation of an object product, brand or company represent positive or negative feeling and behavioural towards the object Belch and Belch, Attitude influences each stage of the buying decision, as the simple assumption that attitudes causes behaviour to ignores other determinants such as personality traits, self-image, motives, behaviour and the social and physical setting in which the action occurs Foxall, Consumer purchasing behaviour tends to determine what it exactly is that drives consumers when making buying decisions.

Many studies have been performed including the above mentioned with regard to consumer behaviourism. On the one hand Figure 1, depicts two inputs of consumer behaviour, namely the behaviour setting and the learning history. The learning history refers to past experiences — both positive and negative — of the consumer. On the other hand, three possible consequences of consumer behaviour are depicted in Figure 1, respectively; utilitarian reinforcement, informational reinforcement and aversive consequences.

Utilitarian reinforcement refers to the satisfaction consumers perceive when buying, owing and consuming economic goods. Of course the informational reinforcement outcome is not applicable to every product that can be bought, as one will not obtain any social status from buying nails for example, on the other hand, people are often judged by the car they drive, making cars an excellent example of the informational reinforcement.

Lastly, aversive consequences can be described as the costs of consuming; having to wait in line, not being able to buy alternative products, relinquishing money, etc. Accumulation purchases refer to consumer behaviour related to certain kinds of collecting, saving and instalment buying. Hedonism or pleasure purchases refer to the consumption of popular entertainment.

Foxall found that green consumer behaviour cannot be linked to a specific category but can be found in any of the four categories. Final causes extend outwards from the person who behaves, each fitting in the next pattern Foxall, Hence, making a sum fits into doing homework, which fits into taking the math class, which fits into studying, which in turn fits into providing yourself with a good future. Every step cause is wider than the previous one and therefore more embracing, making each cause more final Rachlin, This implies that mental phenomena such as intentions, attitudes as well as pain are all defined as extended patterns of behaviour.

Teleological behaviourism helps to understand why consumers only consider only a few brands out of all the brands they can choose from when making a buying decision Foxall, Teleological behaviourism also helps understanding why consumers change patterns and decide to buy another brand than they usually do. It does so by acknowledging the conflict consumers can face between utilitarian reinforcement and informational reinforcement. Both radical behaviourism and teleological behaviourism help to understand consumer behaviour, but both are not complete explanations of it, especially when it comes to breaking of patterns.

Up to a certain extend teleological behaviourism provides an explanation for the breaking of patterns, as explained in the previous paragraph. However, picoeconomics provides a much better explanation when it comes to intertemporal bargaining. How an individual prioritizes the rewards available depends on personal rules. However, seldom such a trade-off between short-term smaller sooner and longterm larger later is isolated from other choice conflicts Foxall, Of which, as Foxall points out, directly relates to green consumer behaviour.

The benefits of the long-term choice are always greater than the benefits of the short-term choice, to make a rational decision in which the total rewards obtained is the greatest is a matter bringing imagining the long-term rewards forward in time. When the opportunity to behave emerges the consumer has two choices, either he stays loyal to his buying pattern, or, the consumer changes his pattern based on a variable presented by the current behaviour setting.

This is a typical situation where the consumer prefers a poorer pay-off which might be temporarily because it is available sooner, than a better long-term pay-off, which would be better for the consumer. Consumers apply this behaviour occasionally in the case of brand choice, but much more often at inter-product choices Foxall, This leads to the question why consumers apply this kind behaviour. Foxall argues that just as in radical behaviourism and teleological behaviourism, the consumer tries to maximize the totality of reinforcement available to him, both informational as utilitarian reinforcement.

However, it need to be noted that consumers often do this with a short-term perspective and therefore maximize their reinforcement on each shopping trip, which might be not the maximum reinforcement that can be obtained when a longterm perspective is applied.

The dilemma consumers face is a conflict between informational reinforcement maximizing the price and utilitarian reinforcement ensure an acceptable level of quality. However, this does not mean that consumers will always buy the cheapest product available. The usual consumer strategy is to: In electronics markets the consumer will make the decision to purchase technological products to fulfil and satisfy their desire. Also, there are several factors that can influence consumer to select which product they will use for provide their needs, such as;.

According to Boone and Kutz they have stated on this point that in every consumer belong to the each social group. As earlier mostly experience can come from a group of family, neighbourhood groups, work and community.

Hence, many consumers are often strongly making decision by people who the consumer knows and trusts. Many marketers understand consumer behaviour from economics. Especially, the assumption between people and rational in their behaviour by identified the behaviour that relating to price, consumer income, consumer taste, and quality of products. Therefore, the demand of medicine is positivity associated with low price of medicine, high price for products substitutes high level of consumer income, high education, high tastes.

Also, the quality of products included with services. Each person is driven by variety of desires and pressures that influence behaviour by values, attitudes, personality and beliefs.

This could help marketer expected the personal influence from the field of psychology. Also, they need to understand the decision processes and acts of people involved in buying and using products.

Solomon stated that a consumer decision is a response to a problem. Schiffman and Kanuk depicted that decision is the selection of an action from two or more alternative choices. It means that there must be more that one alternative choice whenever a customer is making a decision. Kotler pointed out that the consumer buying process is the sum total of alternative, purchase decision, and purchase evaluation. The diagram below gives a brief explanation of consumer decision making process.

Five-Stage Model of the buying process: Consumer searches for information after they have recognised the need. The products can be important in one of the elements to influence consumer to select the choice and acquisition process. On the other hand, as noted by some authors including Hupfer and Gardner and Kassarjian , not all purchasing decisions involve equally the same high level of customer interest and engagement.

However, Hoyer suggested that it is impossible to directly apply these theories to every aspect of decisions making. For a better understanding in a certain product category, customers use a variety of criteria in deciding which store to visit and which product to buy, including selection, price, quality, service, value, and convenience Boone and Kurtz, According to Kotler , consumer use store and product attribute varies among consumers.

Management must, however, know which attribute consumers consider and the important the consumer places on them. Evaluation of alternative that consumer can make decision can be made from price, location, quality and pharmacists relationship to choose a pharmacy David Holdford, The evaluation process is particularly helpful in influencing customers, particularly, when customers are familiar with the desire product, their purchase behaviour tends to be quite small, consisting on average between three and five brands Schiffman et al.

Further, Bruner and Pomazal state that to be able to conduct a purchase the problem recognised needs to be defined. Consumer tend to choose to buy the product by considering characteristics such as location, price assortment personnel, store image and service etc Boone and Kurtz, In executing a purchase intension, there are five purchase sub decisions, which consumers may make up product choice, brand choice, dealer, purchase timing, and purchase amount Kotler, In order words consumer may answer the question of which product to buy, or might as well form a purchase intention to buy the most preferred brand.

Sometimes consumers may have to choose which dealer or store they will go for purchase. Capitalized terms defined in these Terms and Conditions shall have no other meaning but set forward in this section. By using our Services, you represent and warrant that a all registration information you submit to essay4less.

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CHAPTER -2 Chapter 2: LITERATURE REVIEW consumers form attitudes and make decisions to purchase the product. Consumer behaviour is based on the consumer playing three different roles of buyer, payer and user. Consumer behaviour reflects totality on decision of consumers.

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