The paper "External Factors of Consumer Behavior" is an outstanding example of marketing coursework. Daily, people do search, purchase, evaluate, as well as dispose of products and services for one reason or another. Services like insurance services are normally subjected to benefits derived from the subject to the premiums paid for them. One of the human behaviors is that of evaluation and analysis traits of the surrounding. Before an individual decides on using, consuming, or exploring the functions of a product or service, for instance, aspects of analysis and judgment of the same must take place.
However, before any of these takes place, an individual must involve some aspects of the decision-making process which happens internally and is influenced by certain external factors (Lamb, & McDaniel, 2010). The aim of every consumer is to derive the maximum satisfaction and/or utility from the goods or service and therefore is very keen when making purchases on such products. It is important to note that in every market, the societal beliefs and practices are very important in shaping up the quality, marketability and other characteristics of a product in the market. Through the analysis of insurance policies as the services, this paper aims at extracting relevant information that best help in intertwining the relevant consumer theories with the external factors that affect consumer behavior.
In purpose to determine the external factors that influence the consumer when making purchase decisions in the market, the main scope of the paper is to come up with reliable information based on the available consumer theories to analyze the circumstances that make one consumer decide on buying a product or not.
More importantly, consumer theories and facts that explain some of the reasons why consumers tend to behave in specific ways especially when making decisions on spending on goods and services are also discussed in this paper. In addition, the optimal focus of the study is based on linking the factors that affect consumer spending decisions and habits with the relevant consumer theories so as to make informed economic decisions. Consumer Theory According to Robertson (2000) and Hoyer & McInnis (2001), a consumer is a person, a group of people or an organization that become the final user of a good or a service produced in the system, particularly a social one.
Basically, every consumer aims at deriving the maximum satisfaction and/or utility from the goods or service and therefore is very keen when making purchases on such products. It is important to note that in every market, the societal beliefs and practices are very important in shaping up the quality, marketability and other characteristics of a product in the market. Therefore, every product in the market is produced by the producers who are well aware of the consumer tastes and preferences in the product market.
The insurance companies are normally very well aware of the risks that begot people in their well being. Not only people do the insurance companies focus upon, but also on properties, health, education, businesses, among others. At the heart of every human need and wants, which need to be protected for future benefits is what the insurance policies focus on. Customers to these policies rationally ways the risks involved, the insurer’ s credibility, the value of what’ s to be insured, as well as the premium, and finally, a need is created based on these external factors.
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