External Influences On High Involvement Decisions writing assignments on time? Need someone experienced and professional to write your essay? Well, then you came to the right place! We are a team of professionals specializing in academic writing External search if you need more information. Friends and relatives (word of mouth). Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. family has less time for children, and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt Besides the internal factors, external factors also influence consumer behaviour. These factors are not individualistic and are external to the individual. These factors include culture, subculture, social class, reference group and family influences. They are associated with the groups that the individual belongs to and interacts with
Factors Influencing Consumer Decisions | Principles of Marketing
The consumer decision process helps you understand the steps people go through when they are deciding whether and what to buy. Many different factors can influence the outcomes of purchasing decisions. Some of these factors are specific to the buying situation: what exactly you are buying and for what occasion. Because no two people are exactly alike, it is difficult to predict how the tangled web of influencing factors will ultimately shape a final purchasing decision. For marketers, an understanding of these factors provides a more complete view into the mind of the customer.
As you learn more about what influences decisions for your particular target segment, product category, brand, and competitive set, you can use these influencing factors to your advantage. Great marketing uses those connections powerfully and effectively to win the minds and hearts of customers.
While the decision-making process itself appears quite standardized, no two people make a decision in exactly the same way. People have many beliefs and behavioral tendencies—some controllable, some beyond our control.
How all these factors interact with each other ensures that each of us is unique in our consumer actions and choices. The factors that influence the consumer problem-solving process are many and complex. For example, as groups, men and women express very different needs and behaviors regarding personal-care products. Families with young children tend to make different dining-out choices than single and married people with no children.
A consumer with a lot of prior purchasing experience in a product category might approach the decision differently from someone with no experience. As marketers gain a better understanding of these influencing factors, they can draw more accurate conclusions about consumer behavior. The level of consumer involvement is an important part of the buying task: whether the buyer faces a high-involvement decision with lots of associated risk and ego involved, versus a low-involvement decision with little risk or ego on the line.
Product or brand familiarity is another, related dimension of the buying task. When a consumer has purchased a similar product many times in the past, the decision making is likely to be simple, regardless of whether it is a high- or low-involvement decision. Suppose a consumer initially bought a product after much care and involvement, was satisfied, and continued to buy the product. Once a customer is brand loyal, external influences on high involvement decisions, a simple decision-making process is all that is required for subsequent purchases.
The consumer now buys the product through habit, which means making a decision without additional information or needing to evaluate alternatives. New competitors are always looking for ways to break existing brand-loyal habits and lure the consumer into an enticing new product experience, external influences on high involvement decisions. The available market offerings are another relevant set of situational influences on consumer problem solving.
The more extensive the product and brand choices available to the consumer, the more complex the purchase decision process is likely to be. And the more limited the market offerings are, the simpler the purchase decision process is likely to be. For example, if you already have purchased or are considering purchasing a smartphone, you know that there are multiple brands to choose from—Samsung Galaxy, Apple iPhone, Sony, LG, HTC One, and Nokia, to name several.
Each manufacturer sells several models that differ in various features—design, screen size, memory, speed, camera quality, and so on. What criteria are important to you? Is purchasing a smartphone an easy decision? If a consumer has a need that can be met by only one product or one outlet in the relevant market, the decision is relatively simple: Either buy the product or let the need go unmet.
For example, suppose you are a student on a campus in a small town many miles from another marketplace. Your campus and town have only one bookstore. You need a textbook for class tomorrow; only one particular book will do, and only that bookstore carries it.
In this case the limitation on alternative market offerings has a clear influence on your purchase behavior. However, lots of choices may also confuse and frustrate the consumer, such that less-than-optimal choices are made. Marketers can find opportunities in either scenario—a crowded competitive set and a complex decision for the consumer, or a narrow competitive set with limited choices and a simpler decision for the consumer.
In a narrow field with limited choices, effective marketing can help the consumer feel good about the choice they had to make. A good experience with the product during and after purchase is a recipe for brand loyalty. In addition to situational factors, there are also individual traits and characteristics that can shape purchasing decisions. These include things like demographics, life stage, lifestyle, and personality. Demographics are an important set of factors that marketers should not overlook when trying to understand and respond to consumers.
External influences on high involvement decisions include variables such as age, gender, income level, educational attainment, and marital status. Each of these can have a strong influence on consumer behavior. Historically, marketers have made much of generational differences—focusing on the best ways of reaching different cohorts such as Baby Boomers, Generation Xers, Millennials, and so on.
For example, as Baby Boomers head into their retirement years, marketers target them with messages about prescription drugs and other health care products, insurance, home and financial security—all issues of growing concern for people as they age. Generational differences can also be factors in they ways people use media and where they go for information to inform their consumer choices.
Gender is also a defining characteristic for many consumers, external influences on high involvement decisions, as is the marketing that targets them. You have only to watch TV ads during an NFL game and the TV ads during the women-oriented talk show The View to see how the different needs and wants of men and women are translated into marketing messages and imagery, external influences on high involvement decisions.
DeBeers Limited, which has commanded an 80 percent share of the market for diamonds used in engagement rings, employs a consumer demographic profile in the development of its promotional programs.
Their primary target external influences on high involvement decisions for engagement rings is single women and single men between the ages of 18 and The company combined this profile with some additional lifestyle-related factors to develop a successful promotional program. The demographic marker of economic status is another strong influencer in consumer decisions.
Not surprisingly, people in different income brackets tend to buy different types of products, shop in very different ways, and look for different qualities. External influences on high involvement decisions designer clothing shops, for example, aim their marketing at higher-income shoppers. Linked to demographics is the concept of life stage: consumer behavior is tied to the significant life events and circumstances people are experiencing at any given moment.
Life stage has external influences on high involvement decisions big enough impact external influences on high involvement decisions consumer decisions that many marketing organizations develop proprietary segmentation schema to help them better understand this dimension of the consumer experience and better target products and services to individual needs.
A representative example is the set of lifestyle segments developed by the consumer data company Experian. adult population. American consumers experience life-stage marketing when offers relevant to their life events appear in their in-boxes, mailboxes, and even in the checkout line.
Financial services companies target new college students and their parents with credit card offers and banking plans.
Postal Service send promotional welcome packets to new homeowners, hoping to win their business as they settle into a new residence. The variables determining lifestyle are wide-ranging:. Inevitably these individual characteristics impact consumer decisions—and brand preference in particular. The criteria that determine lifestyle are often things consumers feel passionately about.
When a consumer identifies your brand as consistent with his interests, attitudes and self-identity, it paves the way for building a long and loyal customer relationship. It is the multifaceted aspect of lifestyle research that makes it so useful in consumer analysis. A prominent lifestyle researcher, Joseph T. Plummer, external influences on high involvement decisions, summarizes the concept as follows:, external influences on high involvement decisions.
Marketers are often attracted to lifestyle as a segmentation schema because it helps reveal a deeper, more vivid picture of consumers and what makes them tick.
As marketers try to create strong emotional connections between the brands they promote and the consumers they serve, they are selling more than product features.
They are selling a sensibility, an attitude, a set of values they hope will resonate strongly with the target segments they want to reach.
Oprah Winfrey and Martha Stewart are interesting comparative examples of extremely successful marketing that uses a lifestyle orientation to attract and keep devoted consumers. Both brand empires are built around strong, successful, self-made women, and they both target women consumers. The strong lifestyle-oriented identity of each brand makes it relatively easy for individual consumers to recognize which one is most consistent with their own identity and values.
Personality is used to summarize all the traits of a person that make him or her unique, external influences on high involvement decisions. No two people have the same personalities, but several attempts have been made to classify people with similar traits.
His personality categories are introvert and extrovert. The introvert is described as defensive, inner-directed, and withdrawn from others. The extrovert is outgoing, other-directed, external influences on high involvement decisions, and assertive. Over the years, several other more elaborate classifications have also been devised.
Personality traits may also include characteristics linked to they ways people view themselves and calibrate their behavior in the world: for example, external influences on high involvement decisions, self-confidence, empathy, self-reliance, adaptability, and aggression.
Various personality types are likely to respond in different ways to different market offerings. For example, external influences on high involvement decisions, an extrovert may enjoy the shopping experience and rely more on personal observation to secure information.
In this case, in-store promotion becomes an important communication tool. Knowing the basic personality traits of target customers can be useful information for the manager in designing the marketing mix. Marketers have found personality to be difficult to apply in many cases, primarily because it is not easy to measure personality traits. Personality tests are usually long and complex; many were developed to identify people with problems that needed medical attention.
Translating these tools into useful marketing data is no small feat, and marketers have turned to lifestyle analysis instead.
Where personality does come into play more prominently is in the notion of brand personality. Brand managers strive to cultivate strong, distinctive, recognizable personalities for the brands they promote.
The personality gives dimension to the brand, opening the door for consumers to connect with the brand emotionally and identify its personality as consistent with their own values and self-identity. In external influences on high involvement decisions case there is a blurry line between the use of lifestyle and personality to understand and appeal to target customers. If you run down a list of super-brands, though, it is easy to recognize the power of brand personality at work: Apple, Coca-Cola, Walt Disney, Star Wars, external influences on high involvement decisions, Google, and Nike, to name a few.
When we talk about psychological factors that influence consumer decisions, we are referring to the workings of the mind or psyche: motivation, learning and socialization, attitudes and beliefs.
A motive is the inner drive or pressure to take action to satisfy a need. A highly motivated person is a very goal-oriented individual. Whether goals are positive or negative, some individuals tend to have a high level of goal orientation, while others tend to have a lower level of goal orientation. People may display different levels of motivation in different aspects of their lives.
For example, a high school junior may be flunking trigonometry low motivation while achieving champion performance levels at the video game Guitar Hero high motivation.
Low involvement vs. High involvement Buying Decision
, time: 41:073 External Factors that Influences Consumer Behavior
External search if you need more information. Friends and relatives (word of mouth). Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. family has less time for children, and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be. By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples determinants can be classified as either internal factors, e.g. knowledge, or external factors, e.g. social support, that are instrumental in understanding behavior. Some internal factors considered to be important in advocating health-relevant behaviors are: (1)
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