The paper "Interplay of External Factors on Consumer Decision-Making - Banking Industry" is a great example of management coursework. The study of consumer behaviour has become advanced with researchers as well as marketers seeking to understand consumer motivations for product or service consumption. It has been argued that a consumer undergoes a process of decision making before purchasing anything. This process is constructed of five steps, which do not necessarily occur in succession. However, the most important factor is that consumers have to acquire information about a product/service so that they know it exists.
This brings us to the concept of marketing by businesses in a bid to woo consumers over to their side. This paper focuses on the consumer decision making process in relation to financial institutions with a bias towards the banking industry. The process of decision making is often interrupted or enhanced depending on the context of the decision-maker. Therefore the consumer decision-making process is affected by factors that are categorized as internal and external, and we focus on the external factors. Consumer behaviour is an interesting subject because it is at the core of our daily life.
We find that the basic units of society have a significant contribution to the choices made by consumers. The factors that have been seen to strongly influence the choice of banking services in this context are; the family, culture and sub-culture, innovations and social class. Introduction Consumer behaviour is a very significant subject in the world of business and as a result, it has received a lot of attention from researchers (Constantinides, 2004). Businesses understand that they have to continuously revise their marketing strategies in order to influence consumers to purchase their products/services since this is vital to the survival of the business (Goodwin, Nelson, Ackerman & Weisskopf, 2008).
According to Schiffman & Kanuk (1997), consumer behaviour is best viewed in terms of how people spend their time, effort and money in relation to the consumption of different products and services. In addition to this, it important to consider that consumer behaviour is also defined by the choices that people make in regard to selecting and buying products and services (Nickel & Woods, 1997).
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