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    Session 3 - Consumer Involvement and Decision Making

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    Subhadeep Paul
    The document discusses family decision making and consumer involvement in the process. It defines the family and outlines their roles, including looking after economic and emotional well-being. It also describes types of families and factors that influence consumer decision making like parents, price, media, and socialization. The stages of consumer socialization and roles in the consumption process are outlined. Reference groups that impact consumers are discussed, as well as the consumer decision making model.

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    Session 3 - Consumer Involvement and Decision Making

    Uploaded by

    Subhadeep Paul
    3K views22 pages
    The document discusses family decision making and consumer involvement in the process. It defines the family and outlines their roles, including looking after economic and emotional well-being. It also describes types of families and factors that influence consumer decision making like parents, price, media, and socialization. The stages of consumer socialization and roles in the consumption process are outlined. Reference groups that impact consumers are discussed, as well as the consumer decision making model.

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    The document discusses family decision making and consumer involvement in the process. It defines the family and outlines their roles, including looking after economic and emotional well-being. It also describes types of families and factors that influence consumer decision making like parents, price, media, and socialization. The stages of consumer socialization and roles in the consumption process are outlined. Reference groups that impact consumers are discussed, as well as the consumer decision making model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    3K views22 pages

    Session 3 - Consumer Involvement and Decision Making

    Uploaded by

    Subhadeep Paul
    The document discusses family decision making and consumer involvement in the process. It defines the family and outlines their roles, including looking after economic and emotional well-being. It also describes types of families and factors that influence consumer decision making like parents, price, media, and socialization. The stages of consumer socialization and roles in the consumption process are outlined. Reference groups that impact consumers are discussed, as well as the consumer decision making model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 22

    Consumer Involvement and

    Decision Making

    Family Decision Making


    26th August 2008
    Definition of Family

    • Two or more person living together


    • They should be related
    – Either through marriage
    – Or through blood relation
    – Or through adoption
    Role and function of family

    • To look after the economic well being of


    the family members
    • To provide emotional support to each other
    • To establish suitable life style to the family
    • To ensure proper socialization of members
    Types of families

    • Married couple with children – 37%


    • Married couple with children above the age
    of 18 years – 23%
    • Single parents living with children – 2%
    • Couples not married living together – 3%
    • Joint families – 35%
    Consumer Socialisation

    • The process by which a person acquire the


    skills knowledge and attitude necessary to
    function as consumers
    Factors Influencing the decision
    making
    • Parents influence children in Brand preferences
    • Price – quality relationship is taught to the
    children by parents
    • Affluent children have their own perception on the
    Price – quality relationship
    • Friends / TV Advertisement / Mass Media
    influences individuals
    • Parents also teach how to be an economical and
    effective shopper.
    Concepts

    • Observations
    • Co-shopping
    • Direct –experience
    • Cultivation theory
    • Socialisation by rewards and gifts
    Stages of Consumer Socialisation

    • Preoperational Stage  Children and Ice-


    creams
    • Concrete operational stage  Children -
    Logic
    • Formal operational stage  Children –
    earning
    Consumption roles

    • Gate keepers
    • Decision makers
    • Buyers
    Transformation of product for
    usage

    • Users
    • Maintenance
    • Disposers
    • Initiators
    • Information collection
    • Dynamics of decision making
    What is a group

    • A group may be defined as two or more


    people who interact to accomplish either
    individual or mutual goal.
    • Membership Group
    • Symbolic Group
    Reference Group

    • A reference group serves as a point of


    comparison
    – Normative reference groups – child’s own
    family
    – Comparative reference groups – friendly
    neighbour hood / neighbour is an envy
    – Indirect reference groups – Movie star
    Factors affecting reference group
    influence

    • Information and Experience


    • Credibility Attractiveness and the power of
    the reference groups
    • Conspicuousness of the product
    Consumer related reference
    groups

    • Friendship Groups
    • Shopping Groups
    • Work Groups
    • Virtual Groups or communities
    • Consumer action groups
    Young Person

    Family Members Friends

    Influence more basic


    Influence more expressive
    Value / Behavior
    Attitudes / Behavior
    Moral Religious principle
    Style
    Interpersonal skill
    Fashion
    Dress / Grooming
    Fads
    Manners / Speech
    In / Out
    Educational motivation
    Acceptable consumer behavior
    Occupational / career options
    Consumer Behavior norms

    Adolescent Older
    Preadolescent Teenager
    Consumer Involvement in
    Decision Making

    • Involvement is dependent on
    – Nature of the product
    – Psychology of the consumer
    • Degree on Involvement
    – High Involvement – Long Product / Service life
    – Medium involvement – Medium
    – Low Involvement – Short shelf products
    Antecedents to involvement

    • Ego involvement
    • Commitment
    • Communication involvement
    • Purchase importance

    • Extent of information secured


    Decision making
    • It is the process by which a buyer decides to
    purchase a particular product out of various
    alternatives
    – Awareness
    – Interest
    – Evaluate
    – Trial
    – Accept / Reject
    – Adopt
    Process of Decision making
    • Performance of the product
    • Physical risk with the product
    • Financial Risk
    • Reliability Risk
    • Social Risk
    • Ego & Psychological Risk
    • Durability Risk
    Process to develop strategies to
    reduce risk

    • Information search
    • Brand Loyalty
    • Purchase of Reputed Brand
    • Buying from reputed stores
    • Buying expensive products
    • Assurance from suppliers
    Model of Consumer Decision making

    Social Cultural Inputs


    Marketing Inputs INPUT Family /Social Class
    Product
    Culture / Subculture
    Promotion
    Economic class
    Price
    Region / Religion
    Place
    Informal Sources
    Channels of Marketing
    Non commercial sources
    PROCESS

    Need Recognition

    Pre-purchase search OUTPUT

    Evaluation of alternatives PURCHASE

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