The Consumer Decision Making Process

Consumers are the centre of many marketers work. While the consumer is part of the marketing environment, it is also very important to recognise and understand the more personal and specific influences effecting consumers and the nature of the decision making process they use.

Consumers typically have a level of purchase involvement when making purchasing decisions. Levels of involvement range from low to high. Level of involvement is often dependent on the consumer’s perceived importance or personal relevance of a

Theory of Planned Behavior is influenced by an individual’s attitude towards a health behavior (Cameron, Ginsburg, Westhoff, Mendez, & Roque, 2012). The Theory of Planned Behavior according to Glanz, Rimer, & Viswanath, (2008), provides a systematic method that helps determine the issues that are most important to a person’s decisions after having performed a specific behavior. The constructs obtained in the Theory of Planned Behavior are: attitudes, behavioral intentions, subjective norms, social norms, perceived power, and perceived behavioral control (Boston University School of Public Health,

The theory of planned behaviour develops a few assumptions that are argued as bias methodologies. For example the ‘Dob in a dealer’ campaign assumes individuals are motivated to achieve a given change in behaviour, this assumption is detrimental when researches investigate the consumer adoption behaviours. This assumption affects the result the campaign as the theory of planned behaviour will fail to incorporate a range of predictable consumer behaviours, therefore creating boundaries and providing an oversimplified result of behaviour change (Taylor and Todd, 1995). The central weakness of this campaign is that it fails to take into account the non-monetary cost of variables if a person was to stop using illegal drugs, it fails to take into account the unconscious influences on behaviour, and the utility of emotions that go beyond predictable hypothesis, hence affecting the long-term prosperity of behaviour change (Sniehotta, Presseau and Araújo-Soares,

Such a bold position requires a new approach to marketing.  The authors present a thesis of the Influence Mix, which introduces that there are three influences on consumer decision-making — the individual’s prior preferences, beliefs and experiences (P), other people and information services in the form of reviews and

The Theory of Planned Behavior was designed to analyze the link between attitudes and behavior and help to predict and explain human behavior. The thought behind the theory is that it will help to understand how we can change people’s behavior. The theory is based on three defining factors about beliefs. The three types include normative beliefs, behavioral and control beliefs. Behavioral beliefs are described as the attitude that she hold towards the behavior, while

Another relevant theory in this area is the “theory of planned behavior” (TPB), developed by Ajzen and Fishbein (1980). TPB states that intention is the proximal determinant of behavior and is determined by three constructs: attitude (viewed as a positive or negative evaluation towards performing a behavior); subjective norm (which is the perception of the beliefs of important others); perceived behavioral control (which describes one’s perception of the amount of control they have in performing the behavior) (France, France, & Himawan, 2007; Giles, McClenahan, Cairns, & Mallet, 2004). It is of note that while perceived behavioral control has often been equated with Bandura’s concept of self-efficacy many have argued that the constructs are not equal, since self-efficacy is more concerned with cognitive perceptions of control based on internal control factors (Ajzen, 1991; Armitage & Conner, 2001; Giles & Cairns, 1995).

In order to consider factors which are outside a person’s control and that may affect his/her intentions and behavior, Ajzen (1991) proposed the theory of planned behavior by incorporating the construct perceived behavioral control (PBC) to the theory of reasoned action model proposed by Fishbein and Ajzen (1975). Therefore, it is an extension of the Theory of Reasoned Action which is developed to provide a better theoretical framework for behavior by addressing TRA’s problem of insufficient volitional control. The extension was based on the idea that behavioral performance is determined by intention and ability (behavioral control). As per TPB, an individual’s behavior can be explained by his or her behavioral intention, which is jointly influenced

The main difference between TPB and its predecessor, called the Theory of Reasoned Action, is the addition of a third predictor to the theory, namely Perceived Behavioural Control, on top of Attitude and Social Norm predictors which was already present in the former theory. However, according to Ajzen (2005 p.111) the concept of behavioural control poses difficulties of conceptualisation. According to the author, this difficulty lies in the fact that it is not always evident what will constitute actual control over a behaviour, and how to assess it.

Icek Ajzen’s Theory of Planned Behavior was used as a framework to explain the relationship between one’s attitude and behavior and whether or not it can be predicted and or prevented. What the Theory of Planned Behavior focuses on are three kinds of views, behavioral beliefs, normative beliefs and control beliefs (Ajzens, 1971). Atzens suggests that “behavioral beliefs focus on the likelihood of the outcome of behavior and the evaluation and whether or not they have a positive or negative attitude toward the behavior itself. Normative belief focuses on the expectations of others and the motivation to comply with those said expectations and if it is viewed as a result of social pressure or subjective norm (Ajzens, 1971). Control beliefs go on to focus on factors that may positively or negatively influence performance of that behavior and the thought power of those factors and perceived behavioral control. When you consider all of these three views, you develop behavioral intention” (1971). It is suggested

Demand in the wireless industry is determined by the aggregation of individual mobile carriers through the number of wireless subscriptions. Economists all agree that price for a service is an important factor in the decision making for consumers, however it is definitely not the only factor and may not always result in the deciding outcome. Based on pricing, microeconomics can estimate and forecast with plausible accuracy what a consumer may pay for and how much of that service will be purchased.

The purpose of this report is to use a variety of research techniques aimed at understanding the role that knowledge and group influences have on a consumer’s decision-making process. Additionally, the report will advise a range of recommendations that an inert brand can adopt to guarantee its inclusion in the consumer’s consideration set of brands.

The theories of reasoned action (TRA) and of planned behavior (TPB) were developed by Icek Ajzen and Martin Fishbein in 1967 and 1988, respectively (Madden, 1992, 3-4). TPB is a revision of TRA that was made after Ajzen and Fishbein identified and addressed gaps in the TRA model. TRA is designed to predict voluntary behavior but when Ajzen and Fishbein accounted for the fact that not all behavior was completely voluntary or under the actors’ control, they modified TRA into TPB, which accounts for deliberate, planned behavior: the decisions make when people have time to make informed choices (Madden, 1992, 4).

The purpose of marketing is to meet the needs of consumers. Effective marketing centers around how consumers decide to consume a product or service. The consumer decision making process can be regarded as a complex process that involves all the stages from problem recognition, information search which can be divided into internal and external searches, alternative evaluation, purchase to post-purchase evaluation. Because consumers have daily needs, they are bound to make different decisions. These decisions can be complex in nature depending on the consumer’s opinion about a product, from evaluating and comparing, selecting and purchasing. As such, most HCOs are committed in understanding and realizing the core issue of the consumer decision making process and utilizes the theories in practice to guide their strategic decision process.

Table 2.2.1 shows the different reference group influence on people. Opinion leaders and role models are associated with these reference group and exert pressure on consumers. When marketers want their message to go viral, they resort to word-of-mouth using social media such as Facebook and Twitter. The re-tweeting and sharing option on Twitter and Facebook respectively ensures that the message is carried through the respective reference group. Marketers identify these ‘re-tweeters’ since they have the capability to influence the audience.