The paper "Consumer Decision-Making Process " is a good example of marketing coursework. The following paper will discuss the different external factors that influence the consumer when they are deciding which products or services to buy. I will start with a brief introduction of what is meant by the consumer decision-making process as well as the definition of the external factors. Next, I will give a brief description of the product I had selected in assignment one which was Visa. This will then be followed by a conclusion. This conclusion will be determined by the factors that I will have discussed in the body of the assignment. These factors that affect the consumer decision-making process will be discussed in the paper: reference groups, family, social class, cultural and sub-cultural effects, the relevance of opinion leaders, diffusion of the product, the importance of public policy and finally aspects of consumer protection.
I will discuss the various theories found in these factors and show how they influence a consumer looking to buy a credit card. I will show how they end up buying Visa instead of any other credit cards that are found in the market. Introduction The consumer decision-making process has five important stages (Perreau, 2012).
In the first stage, the consumer realizes that they need a certain good or service. They then move to the second stage that is looking for any information that they feel they need to make a good choice in purchasing a product. He or she proceeds to evaluate the different products available in the market, and fourthly they buy the product they felt would meet all their needs. In the final stage, the consumer compares the product the purchased with the needs they had established in the first stage.
External factors are influencing the consumer buying behaviors are factors that come from the outside of the consumer (Ducatte, 2009). Body of the Essay Reference Groups Human beings are social because our ways of lives make us interact with others on a daily basis. It is normal for consumers to look up to either a group of people or an individual. These people that consumers look up to are known as the reference groups (Serralvo, 2010).
The consumer uses them as a point of reference while they are deciding to either buy or not buy a product. These reference groups are looked up for their values, opinions, acts of behavior and attitudes. Visa needs to recognize who these people or groups are in every market they are operating and use them in their marketing strategies, as they will greatly influence how good or bad that market will turn out to be. The reference groups are classified according to the type of influence they have on the consumer (William O.
Bearden, 1982). The first class of the reference group is known as a normative reference. This group has an influence on general or values that are defined broadly, attitudes as well as behaviors. In the credit card industry, this group might be made of individuals like business experts. Consumers expect business experts to know what is best in terms of credit cards since they have knowledge and experience in the industry. As such, consumers will purchase a Visa card because they saw a certain businessperson using it as they are the ones who define what is good or bad in the business industry.
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