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External Factors and Their Influence on a Consumers Decision Making Process - Case Study Example

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The paper 'External Factors and Their Influence on a Consumer’s Decision Making Process' is a wonderful example of a Management Case Study. The decision to purchase a particular item or service by a consumer does not happen in a vacuum nor is it spontaneous (Lamb, Hair and McDaniel, 2009). On the contrary, factors such as the family, social class, culture, opinion leaders, needs…
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External factors and their influence on a consumer’s decision making process for clothing products (clothes). Student’s Name: Student number: Name of the unit: Unit Code: Unit coordinator: Word count: 2, 110 Introduction The decision to purchase a particular item or service by a consumer does not happen in a vacuum nor is it spontaneous (Lamb, Hair and McDaniel, 2009). On the contrary, factors such as the family, social class, culture, opinion leaders, needs, motivation among others greatly influences the decision making process (Perreau, 2014). The decision making processes and the eventual actions of buying a product or service by consumers are referred to as buying behaviour. According to Adapa (2015), a decision is making a choice from two or more alternatives and implementing that choice. Thus, the consumer decision-making process is the process by which consumers gather and analyse information to make selections from among alternatives (Burrow, 2009). A consumer goes through five key steps when making decisions to purchase goods and services which include need recognition, information search, alternative evaluation, making purchase decisions and finally carrying out a post purchase evaluation (Gbadamosi, Nwankwo and Bathgate, 2013). Despite the fact that clothing is a basic need and its purchase decision not necessarily rely on other factors apart from the necessity aspect, a number of factors come into play in determining the type and kind of clothing one decides to buy. This essay will discuss those factors that have a greater influence on decision making on the part of consumers in buying clothing. It concentrates on three main external factors that greatly inform the decision reached by consumers in relation to clothing purchases. Culture and decision-making process by consumers According to Gbadamosi, Nwankwo and Bathgate (2013), culture encompasses all the learned beliefs, customs and values that shape the behaviour of members of a society. Among the many factors that influence consumer decision making cultures takes a large share because it includes all the activities that consumers engage in without a conscious choice because their culture’s customs, values, beliefs and rituals are inscribed in their daily habits (Lamb, Hair and McDaniel, 2009). Culture is like an in built memory of a computer as it directs the behaviour of and individual and that behaviour is reflected in shopping decisions. If a certain product conforms to the beliefs, customs, values and norms of a particular society, then consumers inherent in that particular society find it easy in making a decision to buy such products (Madaan, 2009). Thus culture determines what one wears, eats and also determines where to reside and travel (Pride and Ferell, 2010). Culture determines what is acceptable within one’s society and influences our patterns of living and consumption. As far as clothing is concerned, different societies dress differently simply because of the differences in their beliefs, customs, values and norms. For instance, in a society dominated with Muslims, we expect them to adhere to a particular dress code that agrees to their culture. For example, in this particular community women are required to cover themselves completely leaving only the eyes. Thus, when making decisions to purchase clothes they have to go for long dresses and ‘hijabs’. Hence, their beliefs have been pertinent in informing their purchase decisions. The same case applies to a society of lawyers in that their dressing code is dictated by an established culture in themselves in that if you happen to be a lawyer you find yourself dressing in expensive suits and ties. Another example illustrating how culture informs purchase decisions on clothing is where a Christian bride is required to wear a white gown during her wedding day where a Hindu bride is required to wear a red, maroon or a bright coloured saree during her wedding day. It is prohibited in the Hindu culture to wear white during important occasions. Also, in formal organisations including companies, there are prescribed dress codes that should be adhered. All these play a very important role in informing the decision making by consumers when shopping for clothing. So before one decides to commit his or her money to buy clothes he or she considers whether the clothes that he or she is about to buy conforms to the requirements of the beliefs, norms, values and perceptions of that particular society. Social class and consumer decision-making process Adapa (2015) define social class as a hierarchy of distinct status classes into which members are allocated and the members of each distinct class have relatively the same status and members of all other classes have either a higher or lower status. Members are put into these distinct classes based on their levels of wealth, power, education, occupation and prestige. Here, members are grouped into upper, middle and lower classes as well as various subclasses. So in society, people are ranked into higher or lower positions. People within a similar social class subscribe to a set pattern of behaviours befitting that class. And because people from the same class spend a lot of time together, they are thus bound to be influenced more by the people of the same class than those from other classes. Social class influences its member’s childhood training, religious orientation, financial decisions, access to higher education, choice of occupation and leisure based activities. And because social class informs so many decisions on a number of aspects of an individual within that particular class, it also affects that individual’s buying decisions (Pride and Ferell, 2010). Social class influences member’s spending habits, saving and credit facilities. To some level, it also influences the type, quality and quantity of products an individual buys and uses and also determines from which stores these items are bought. This aspect to a greater extent influences purchases of clothing, food, financial and health care services, recreation, travel, entertainment and home furnishings (Pride and Ferell, 2010). Class consciousness is a very vital determinant of purchase decisions, especially when relating to clothing. With respect to clothing, those individuals who happen to occupy the upper class or are highly ranked in society tend to buy new, elegant, designer and fashionable clothing in comparison to those who occupy the other classes who go for cheap second-hand clothing. Here, it brings out the aspect that there are different clothes for the different classes. They are different in terms of type and quality. It is a common belief among many that you can easily tell one’s social status in society by simply looking at what they are wearing. So for members to fit and feel comfortable in their social classes, they must dress to a level in agreement with that particular class so when they go shopping this fact ringers in their mind and will go a long way in informing them of their purchase choices. More affluent individuals tend to be more mindful of their appearance so purchase of expensive designer clothes would be based on branding, prestige and image. It is a way of announcing their high status in the society where their clothing needs to be identified by others as being expensive in order to convey status. So whenever such people go buying clothes for themselves, they do so bearing in mind that whatever clothes they buy should be announcing loud their status in the society (Gbadamosi, Nwankwo and Bathgate, 2013). In this aspect, there is the diffusion of the opulence being felt in the upper class down the other classes where the members of a lower class try to imitate members of higher social class. This is in that, they attempt to match their purchasing prowess in buying expensive clothes, automobiles, appliances and other status symbol products (Pride and Ferell, 2010). So this aspect not only influences members of only a single class, but trickles down affecting purchase decisions of consumers across the board. Upper class engages in the purchase of designer and trending clothes, luxury cruises, foreign sports car, fine jewellery etc. Middle class is tending to near luxuries whereas lower classes are down-market consumers (Adapa, 2015). Reference groups and consumer decision making process A reference group is a group that an individual attaches to strongly that he or she incorporates the values, attitudes and behaviours of group members into her or his way of life (Pride and Ferell, 2010). A reference group forms a basis of comparison upon which one sources for product information. An individual’s buying decision can happen to follow the advice, beliefs and actions of a reference group (Ferell and Hartline, 2008). There are three types of reference groups that are more relevant to this discussion; a membership reference group one in which an individual actually belongs to and attaches strongly enough take on the values, attitudes and behaviours of people in that group and an aspirational reference group one in which an individual aspires to belong where an individual wishes to be like those members in that particular group and lastly we have the disassociative reference group where an individual desists from taking on the values, attitudes and behaviours of group members in that the individual won’t buy items associated with that particular group especially clothing (Pride and Ferell, 2010). Reference groups can be clubs, social or civic organisations, business groups, informal groups of peers and others having features appealing to an individual. A member will feel part of that group if he she purchases and uses products and services preferred by members of that particular group (Burrow, 2009). This is even business people in most cases do what is called celebrity endorsements in advertising their products and because people wannabe like celebrities they will purchase those items endorsed by celebrities especially clothes. A consumer’s behaviour may change so as to be line with that of members of a group that the consumer strongly identifies with. With respect to clothing an individual will tend to buy those clothes those members of that group he or she strongly identifies with wear while desisting from purchasing clothes worn by members of a group he or she detests. For example, many youths strongly identify with musicians of rap music. And this particular group of people tend to dress in large brand jerseys and baggy jeans hence the youth will buy such clothes in order to feel part of that group. A reference group consist of people that an individual admires attaches with and wishes to be part of. Thus, a marketing strategy that links the consumers with the images and activities of members of their reference group and motivates them to become a member of such a group by buying and using products and services being used by members of that group proves to be very effective in nabbing consumers (Burrow, 2009). Conclusion In conclusion, consumer behaviour is influenced by a number of factors. Some of these factors are internal whereas others are external. Some of the external factors include culture, social class, reference groups, family, opinion leaders, ethnicity and other motivations exerted from the outside. These factors affect the consumer decision making process to different levels especially when one is shopping for clothing. Since the decision to buy does not just pop up, these factors guide the consumers in making the best possible decisions as far as purchasing products or services is concerned. Purchase decisions by consumers go through complicated processes in order to be reached. It is not just seeing a product and deciding to purchase it a number of factors inform that decision. So when consumers are ready to buy products or services they will engage in some form of decision making where they will go through a series of processes commencing with the realisation that they need to purchase a particular commodity or service and ending with the actual purchase of that particular commodity or service and then finally evaluating the purchase whether it has met the consumer expectations or not. References Adapa, S. (2015). Strategy and Marketing: Course instructional slides. Armidale: University of New England. Burrow, J. (2009). Marketing. (3rd edition). Boulevard Mason: Cengage Learning. Ferell, O.C. and Hartline, M.D. (2008). Marketing Strategy. (4th edition). Mason OH: Neil Marquardt. Gbadamosi, A., Nwankwo, S. and Bathgate, I. (Eds). (2013). Principles of Marketing: A Value based Approach. London: Palgrave Macmillan. Govindarajan, M. (2007). Marketing Management: Concepts, Cases, Challenges and Trends. New Delhi: Prentice Hall. Lamb, C., Hair, J. and McDaniel, C. (2009). Essentials of Marketing. (6th edition). Mason OH: Nell Marquardt. Madaan, K.V.S. (2009). Fundamentals of Retailing. New Delhi: Tata McGraw Hill. Perreau, F. (2014). The 4 Factors influencing Consumer behaviour. Retrieved from consumer factor website: http://theconsumerfactor.com/en/4-factors-influencing-consumer- behavior/ Pride, W.M. and Ferell, O.C. (2010). Marketing. Boulevard Mason OH: Cengage Learning. Wright, R. (2006). Consumer Behaviour. Bedford Row London: Thomson Learning. Read More
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