MGT1002Assignment2BanerjeeS09820

8/6/2019 MGT1002Assignment2BanerjeeS09820

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CONSUMER BEHAVIOR

5 / 9 / 2 0 1 1

An analysis of my

consumption choicesMarch 28 April 10

Souvik Banerjee

USQ 1009820

MGT 1002

Assignment 2



Table of Cont ents

1. Situational Influences ......................................................................................... 2

2. Consumer Perspectives....................................................................................... 4

3. Value .................................................................................................................. 6

4. Satisfaction ........................................................................................................ 8

5. Relationship Quality ........................................................................................... 9

6. Perception, Learning and Memory ................................................................... 10

7. Motivation, Emotion and Aroused Feelings ...................................................... 11

8. Personality, Lifestyles and the Self-concept ...................................................... 13

List of Reference ................................................................................................... 16

Appendix .............................................................................................................. 16



1. Situational InfluencesAs consumers, we come across situations requiring purchase decision making as frequent as

several times every day. Purchases might differ from being routine usage products to some new

experimental products. The purchase decision involved in the former may be very simple while it

would be complex for latter. Looking at the weekly purchases, it can be seen that food and

beverage items are prominent catering to daily needs of the consumer. The purchases can be seen

as involving low or high involvement. With a decision having low involvement, the search

behavior and knowledge of price are independent, which is other way around for high

involvement decision (Kujala and Johnson, pg. 244). The products like vegetables, eggs, bread,

phone recharge, ice cream and drinks fall under category of daily consumption catering to our

physiological needs and require low involvement whilst making these simple purchase decisions.

Situational influences can be seen as the temporary factors that affects consumer activity and

decision making. A wide variety of environmental and situational factors can be classified under-

time constraint, physical surroundings, consumer behavioral states and task definition.

Physical surroundings include factors like store location, crowding in store, lighting, etc. Such

factors might affect the quantity and quality of the products which consumer buys. Since most of

the recorded purchases are noted to be daily consumption products requiring low involvement in

purchase decision, it is suitable to buy from convenience stores such as Indomaret, Circle-K and

7-eleven. For salon needs, the consumer would prefer to choose a place which gives quality

service and is not overly crowded and uncomfortable. For dinner out with friends and family,

restaurants with good ambience and service are sought after while cafes like Starbucks are

preferred as a hangout with friends for coffee and snacks. The task definition factors are based

on the purpose of the purchase such as buying a gift for friend or shopping for clothes for formal



meeting at work which decides the choice of product required. Talking about time constraint, a

consumer¶s decision is effectively influenced by time factor. For example, planning for a

weekend outing with friends can be done over a longer period of time where well thought and

informed decisions can be made whereas in deciding about dinner takeout after a long day of

work would look for the easiest and most convenient option available. Also, the temporary state

of an individual¶s behavior can be counted as a situational influence where a person can be ill, in

a bad mood or in excited state which affects consumer action. As an example, a consumer in bad

mood or in bad health would react negatively on encountering a crowded, humid store or a

restaurant with careless service which affects purchase decision making and satisfaction level.

Dinner Out 9.30pm physical surroundings Thai Restaurant

Coffee at Starbucks - physical surroundings Starbucks

Online shopping - task definition eBay

Shopping for jeans - task definition Levis Store

Lunch in Burger King 2pm consumer behavioralstate Burger King

Dinner takeout 10pm time constraint Chinese restaurant

Weekend outing to

Theme Park

11am time constraint Disney Land



2. Consumer PerspectivesCustomer Choice is a study of microeconomics that relates preferences in customer demand

curves (Wikipedia 2011).In more general terms, it is when customers look for information about

products and makes comparison of available alternativesfrom other product brands. Rational

decision making, behavioral influence decision making and experiential decision making are the

three types of consumer choice. The recorded purchases of consumer can be categorized

according to the above.

Rational decision

making

Behavioral influence

decision making

Experiential decision

making

Online Purchase of items on

ebay

Choosing Salon Gym

Books Choosing restaurant/cafe Choosing taxi company

Choosing doctor/hospital Choosing movie hall

Choosing convenience store

Rational decision making is a systematic approach in which careful observation of products and

statistics are involved prior to making the decision. Products which need higher involvement of

consumer to gather information to make an informed decision and be sure of buying a product

come under this approach to reduce cognitive dissonance. For purchasing bag and shoes online,

information regarding its pricing, quality, authenticity, colors, sizes and comparison with other

available brands is needed. Similarly for buying book on a particular subject can come from

different authors and publications. Research about quality of material in a book and its reviews in

such a case is alsorecommended. This is also implied for choosing a doctor/hospital on basis of

doctor¶s qualification, appointment availability and clinic location. In behavioral influence



decision making, environmental factors play an important role in the decision making process.

For choosing a salon, the consumer looks for a low crowded place with ample service and

soothing surroundings. Although the consumer buys daily need products from

grocery/convenience store, the display of items and variety of products would give the customer

an option of choosing more effectively according to his need, liking and preference. The same

follows for choosing a restaurant or a cafe to hang out with friends and enjoy leisure time. Good

seating, lighting, ambience, recreational activities with good service would attract an individual

and make them a preferable place for hanging out with friends and family. The third type is the

experiential decision making which uses one¶s experience of usage of various products and

services in the past. The consumers decide which purchase choice or used service has been best

for them and they stick to it. For recorded data of purchases, the consumer decides on which gym

he wants to go on basis of his experience of the place and being satisfied with the available

equipment, trainer, gym location and suitable timings. The choice of using a specific taxi

company in a foreign country is also influenced by experience of self and others. Blue Bird is the

most renowned company known for its safety and comfortable service is the deciding factor

when hailing any taxi in Jakarta.



3. ValueSome researchers have used the terms luxury and necessity more broadly, in a less technical

sense, to imply that luxuries are consumed primarily for hedonic pleasure while necessities are

required to meet more utilitarian goals (Dubois, Laurent, and Czellar 2004). Hedonic goods are

multisensory and provide for experiential consumption, fun, pleasure, and excitement. Flowers,

designer clothes, music, sports cars, luxury watches, and chocolate fall in this category.

Utilitarian goods, on the other hand, are primarily instrumental and their purchase is motivated

by functional product aspects. Examples are microwaves, detergents, minivans, home security

systems, or personal computers (Dhar and Wertenbroch 2000). Notice that both utilitarian and

hedonic consumption are discretionary and the difference between the two is a matter of degree

or perception.

Purchase Utilitarian Value Hedonic Value BothGroceries(vegetables, bread, eggs etc ) Yes - -

Drinking water cans Yes - -

Visit to the theme park - Yes -

Movie theatre - Yes -

Meat Shop - - Yes

Doctors Appointment (Consultation and

Medicines) Yes - -

Purchase at Bookstore - - Yes

Phone-Prepaid Recharge - - Yes

Dinner at Thai restaurant - Yes -

Shopping for kitchen utensils Yes - -

Shopping for Movie DVDs - Yes -

Lunch in Burger King - Yes - Payment for Gym - Yes -

Lunch(Meal, Fruit Juice) Yes - -

Icecream - Yes -

Coffee at Starbucks - Yes -

Electrician/Maintenance Charge

- - Yes



Loan to co-worker - - Yes



4. SatisfactionThe consumer¶s response to the evaluation of the perceived discrepancy between prior

expectations (or some norm of performance) and the actual performance of the product as

perceived after its consumption (Tse and Wilton 1988 p. 204).



5. Relationship Quality



6. Perception, Learning and MemoryPerception, Learning and Memory together are an important tool affecting consumer behavior

and their decision making process. Perception is basically collecting information about certain

products while learning and memory are the outcomes of perception. The marketers provide

consumers with abundant information about their products through promotional plans and

advertisement. The idea is to have the consumers process this information correctly and facilitate

learning so that they store this information for future reference and comparison. The relevance of

above mentioned influences to consumer behavior can be seen in the recorded purchases.

Although competitors like Mc Donald and KFC are situated in the neighborhood, lunch in

Burger King became a preference because of the new variety of burgers they have introduced in

past three months. Many attractive BK billboards have been put across the city and

advertisements on TV about the same, serve as visual mode of information transfer which assist

perception process. Unintentional learning followed in this case as consumer was excited to try

out new product looking at advertisement. The consumer stores this information in his Short-

term memory which requires rehearsal of the product to move it to his long term memory. The

consumer trusts the credibility of doctors at Siloam Hospital and prefers to make an appointment

there. Siloam Hospitals have come up with schemes for medical insurance which have become

widely popular with people requiring regular medical aid. Billboards, pamphlets and

advertisements on radio and TV have been used to convey this message to the people. The

consumer uses intentional learning where he cares to know what medical care institute is best for

him and from past experiences of his family members and friends he knows Siloam Hospital is

one of the best in the city which resides in his long term memory and helps him choose the same.

Shopping for jeans at Levi¶s store can also be seen as a result of perception from the extensive

promotion of new line of jeans that have been launched that promises to be of best fit which



further results in unintentional learning. But on visiting the store and trying out their new

product, negative remarks get stored as it didn¶t meet up to the expectation. For dinner with

friends, the consumer prefers to go to KFC as it provides great and enjoyable meals at more

reasonable prices than Burger King. This is known to the customers from their experience and

the marketer¶s message is stored permanently. On weekend, the consumer plans to go to the new

water theme park that opened recently. Over the months, many advertisements have been put in

local newspapers and television channels telling about many new rides they have which are also

safe for adults and children. The people are hence excited and look forward to a recreation place

they can visit with their family members and friends.

7. Motivation, Emotion and Aroused FeelingsMarketers are always keen to learn the motive which drives the consumers to buy certain

products extensively while they may overlook others. Learning consumer motives provide a

better understanding of consumer behavior, their preferences and help the marketers to meet

customer needs. Motivation, categorized as Utilitarian and Hedonic, are the inner reasons or

driving forces behind human actions as consumers are driven to address real needs (Babin and

Harris 2009,pg83). Motivation is responsible for driving consumer behavior and emotion

resulting in a high involved customer having positive emotions and better motivated to buy a

product. Emotions are further defined as an internal process in a consumer while aroused

feelings are a behavioral component of emotions which is the result of consumer¶s reaction to

different stimuli. At many times, a consumer may face multiple motives which results in conflict

during purchase decision process. The consumer buys groceries every week including

vegetables, bread, eggs and drinking water cans which is his consumption requirement and a

result of utilitarian motivation. The consumer feels content on buying the basic needful things as



it a requirement for him and his family. The visit to the theme park on weekend with friends is

the recreational activity that consumer prefers to engage in. He experiences excitement and joy

to be hanging out with his friends which are the aroused feelings as a response to be in an

entertaining place. In this case, the hedonic motivation drives consumer emotions, arouses

positive feelings and makes him strongly motivated. The consumer also has interest in watching

new movies in movie theatre and enjoys watching fun and comedy movies which makes him

happy and delighted. Here as well the consumer is driven by hedonic kind of motivation rather

than a need which he has to fulfill. The consumer sees an advertisement on television for a

government institution for under-privileged children and generates a positive response to it by

feeling moved and warm-hearted. The consumer provides monetary help to a co-worker for the

same and it indicates that consumers respond positively to the informative advertisements. The

consumer does not satisfy his personal need in such a situation but is seen to be helpful for

fellow beings whose motive may be considered hedonic in nature.



8. Personality, Lifestyles and the Self-concept

Purchase Personality Lifestyle Self-Concept Unaffected by

Personality,Lifestyle andSelf-Concept

Phone-PrepaidRecharge

- - - Yes

Salon (Haircut) - - Yes -

Purchase at Bookstore Yes - - -

Shopping for jeans - - Yes -

Dinner at Thairestaurant

- Yes - -

Doctor¶s Appointment

(Consultation andMedicines)

- - - Yes

Loan to co-worker Yes - - -

Shopping for MovieDVDs

- Yes - -

Payment for Gym - - Yes

Meat Shop - Yes - -

Groceries(vegetables,

bread, eggs etc )

- - - Yes

Movie theatre Yes - - -

Electrician/Maintenance

Charge

- - - Yes

Drinking water cans - - - Yes

Visit to the theme park - Yes - -

Drinks for friends - - Yes -

Shopping for kitchenutensils

- - - Yes

Coffee at Starbucks - Yes - -

Dinner takeout Yes - - -

Lunch in Burger King Yes - - -

The marketers also find it crucial to follow up a study on personality of individuals in order to

understand consumer behavior. Personality refers to the totality of thoughts, emotions, intentions

and behavior that a person exhibits consistently as he adapts to his/her environment (Babin&

Harris 2011,p 103). From the table the purchases noted as affected by consumer¶s personality are



buying books from bookstore according to his personal liking and reading habit. The other

activities affected by consumer¶s behavior and personality are giving a loan to co-worker,

watching movies, ordering dinner takeout

and having lunch in Burger King. The five factor model of personality has been used to realize

consumer behavior of individuals with different personalities. The five factors that have been

used in this model are neuroticism, extraversion, openness, agreeableness and conscientiousness.

The combination of these factors as traits can be used to explain behavior. An individual¶s

lifestyle has a direct impact on his behavior as a consumer. A person who loves to have fun, go

out frequently and dine in expensive restaurants would have a different set of preferences for

hang out places when compared to a person who likes to spend an optimum amount for eating

out. Many people also have a tendency to stick to or be overly indulgent in buying products of

luxurious brands catering to their liking, social stature and lifestyle. From the table the purchases

noted as affected by consumer¶s lifestyle are having dinner at a Thai restaurant, buying movie

DVDs to watch at home with family, buying meat once a week, have a weekend outing with

friends to the theme park where consumer likes to go out places on weekends with friends and

having coffee at Starbucks which is a favorite hangout for his friends. Self-concept refers to the

feelings and thoughts a consumer has about himself. The purchases and activities impacted by

self-concept are taking haircut at a popular salon, shopping for latest fashionable pair of jeans,

being a member of the gym in order to be fit and buying drinks for friends for a good social

equation. Apart from these, some consumer activities stand unaffected by personality, lifestyle

and self-concept. They are buying weekly groceries from a convenience store, making a doctor¶s

appointment when sick, buying drinking water cans, shopping for kitchen utensils and having an

electrician fix the electrical faults in the house.





List of Reference

Babin, BJ & Harris, EG 2011, CB, South-Western, Cengage Learning, Mason OH.

Kujala, Jouni and Michael Johnson (1993), ³Price Knowledge and Search Behavior for Habitual,LowInvolvement Food Purchase,´ Journal of Economic Psychology, 14 (2): 249-265.

1. http://www.sykronix.com/tsoc/courses/cb/cb_sit.htm

2. Consumer Choice-wikipedia

3. http://www.businessdictionary.com/definition/rational-decision-making-approach.html

Appendix

Day 1- Monday 3/28

Day 2 ± Tuesday 3/29

Time Purchase/Transaction Quantity Price (Rp) Need/Luxury

2.10pm Lunch in restaurant 1 85,000 Need

3.25pm House Rent-Onlinetransaction

1month 7,000,000 Need

6.45pm Salon (Hair Cut) 1 90,000 Luxury

10pm Icecream 2 22,000 Luxury

Day 3- Wednesday 3/30


9am Drinking Water Can 1 5,000 Need

11.30am Taxi to mall 8km 65,000 Need

1.15pm Lunch (Meal,Fruit Juice) 1 28,000 Need

4.25pm Coffee &Icecream 2 60,000 Luxury

8pm Groceries(Bread,Eggs,Chips, Bread-1pack 55,000 Need


11.30am Phone Pre-paid

Recharge

2 20,000 Need

12.15pm Lunch (Meal, Fruit

Juice)

1 32,000 Need

7.30pm Drinking Water Can 1 5,000 Need



Curd, vegetables) Eggs-6

Chips-2pack Curd-3

Day 4- Thursday 3/31


11.30am Breakfast(Sandwich) 2 24,000 Need

1.15pm Drinks for friends 8 185,000 Luxury

2.40pm Lunch in Burger King 1 42,000 Need

9.30pm Dinner Out to Outback 1 145,000 Luxury

Day 5 ±Friday 4/1


11.20am Taxi 5km 40,000 Need

11.50am Tv& BroadbandOnline Payment

1 month 394,000 Need

1.20pm Lunch (Meal,FruitJuice)

1 35,000 Need

7.45pm Juice Parlor 1 28,000 Need

9pm Drinking Water Can 2 10,000 Need

Day 6- Saturday 4/2


2pm Pizza Hut Home

Delivery

2 130,000 Luxury

5.30pm Electrician/Maintenance

Charge

1 25,000 Need

7.20pm Phone Pre-paid

Recharge

5 55,000 Need

7.30pm Vegetables and Fruits 1 18,000 Need

Day 7- Sunday 4/3


12.15pm Taxi 8km 55,000 Need

1.30pm Shopping for clothes 2pcs 240,000 Luxury3.45pm Shopping for Movie

DVDs

5 35,000 Luxury

4.30pm Movie Tickets 2 70,000 Luxury

5.45pm Popcorn, Hotdog 1 each 60,000 Need




Day 8- Monday 4/4


10am Monthly payment for Gym-by Cash

1 month 400,000 Luxury

1pm Lunch(Meal, FruitJuice)

1 25,000 Need

6pm Taxi 5km 35,000 Need

6.30pm Doctor¶s

Appointment(Consultation and

Medicines)

1 150,000 Need


7.50pm Drinking Water Can 2 10,000 Need

Day 9- Tuesday 4/5


10.45am Taxi 6km 40,000 Luxury

2.15pm Lunch (Meal, Fruit

Juice)

1 25,000 Need

3pm Purchase at

Bookstore

2 75,000 Luxury

Day 10- Wednesday 4/6


1.50pm Online purchase on eBay(game)

1 540,000 Luxury

3.40pm Loan to co-worker Luxury

3.55pm Groceries ( Shampoo, Body

wash,Sunscreen,Flour,Cooking Oil,Bread, Eggs)

Shampoo-1

Bodywash-1Sunscreen-1

Flour-5kgsCooking Oil-

1litreBread-1pack

Eggs-6

140,000 Need

9.30pm Dinner at KFC 2 67,000 Luxury

Day 11- Thursday 4/7


9.30am Drinking Water Can 2 10,000 Need

1.10pm Lunch (Meal, FruitJuice)

1 33,000 Need



Day 12- Friday 4/8

Time Purchase/Transaction Quantity Price(Rp)

Need/Luxury

10.40am Shopping for kitchen utensils 2 27,000 Need2.35pm Movie Tickets 2 60,000 Luxury

6.45pm Dinner at Thai restaurant 2 180,000 Need

7.30pm Juice and Ice-cream 1 each 45,000 Luxury

Day 13- Saturday 4/9


10.25am Payment of Electricity Bill

1month 2,400,000 Need

12.30pm Lunch Takeout 1 38,000 Luxury

Day 14- Sunday 4/10


8am Vegetable Shopping 5 35,000 Need

9.15am Meat Shop 1kg 114,000 Need

5.30pm WaterTheme Park Tickets

2 100,000 Luxury

6.20pm Snacks at ThemePark

4 80,000 Luxury

8.45pm Dinner Out 2 145,000 Luxury

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