Essays on Consumer Decision-Making - External Factors Coursework

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The paper "Consumer Decision-Making - External Factors" is a great example of management coursework. Besides the internal or psychological factors that influence consumer behavior, there are several external factors that play a major role in consumer choices and this directly impacts the consumption of a particular good. External factors can be described as the external environment which affects consumer's purchasing behavior by influencing their decisions. The understanding of these factors along internal factors affecting consumer decision-making is important in ensuring that there are effective and appropriate marketing strategies aimed at increasing the consumption of coffee.

As such, this paper discusses the external factors affecting coffee consumption behavior in line with the consumer decision-making process. Consumer Decision-Making Process In order to have a clear understanding of how external factors affect consumers’ purchasing decision-making and hence purchasing behavior, it is important to have a fundamental understanding of the consumer decision-making process. The process is comprised of three stages, the input, process and output stage (Okonkwo, 2007). During the input stage, the consumer gets the information required to initiate the process or to perform analysis. In the process stage, the consumer processes this information in order to make the purchasing decision whether to purchase the product or not to purchase it.

Other decisions include when to purchase, how to purchase the product and where to purchase the product. The output stage is the actual decision (Okonkwo, 2007). External factors affect the consumer at different stages of the decision-making process. For example, reference groups might provide the consumer with information about available brands and then proceed to give the consumer the best brand, which affects the process stage. External Factors Affecting Consumer Decision making Reference groups These are groups of people who have great influence over an individual.

An individual will always seek their opinion in their decision-making process. Reference groups will always directly influence a consumer’ s decision on purchasing a good (Loudon and Bitta, 2002).


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