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Consumer Choice or Influential Factors in Purchasing Products

Good Essays
People purchase products and services for a variety of reasons, whether it is for their own personal wants and needs, for family and friends, or for prestige. These consumers vary in age, income, education, and lifestyles. This report briefly discusses the influences involved in consumer purchases and identifies the consumer process used in order to purchase a product or service.
Consumer decision making is “the process of making purchase decisions based on cognitive and emotional influences such as impulse, family, friends, advertisers, role models, moods, and situations that influence a purchase.” (Schiffman & Kanuk, 2007, p. G-3)
External Influences External influences provide information about a product or service and can
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Need Recognition Recognition of need usually occurs when a consumer is faced with a ‘problem’ or awareness of a need. In reviewing this week’s assignment, I considered my recent purchase of a 2011 Chevy HHR. Although the automobile purchase was a major decision in itself, I had to face the dilemma of purchasing (or not) an extended warranty package offered by the dealership. (Schiffman & Kanuk, 2007, p. 532) According to an Internet article by Chen, Kalra, & Sun (2009):
Warranties have since become ubiquitous at the checkout aisle, and extended service contracts have become a core product for retailers, generating about US$15 billion in revenue annually. According to Business Week, in 2003 warranties accounted for more than half of Best Buy’s profit and almost 100 percent of Circuit City’s. The dealership offered a Mechanical Protection Plan (MMP), Guaranteed Automobile Protection Plan (GAP), On-Gard Theft Protection, and Premier Vehicle Coverage for new, pre-owned and certified vehicles, with a total service contract of $2,990.00 above the purchase price. There appears to be two different need or problem recognition styles for consumers, which includes the actual state types, wherein the consumer perceives they have a problem when a product fails to perform satisfactorily, and the desired state types, “for whom the desire for something new may trigger the decision process.” As I was purchasing a new vehicle and very concerned
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