Consumer Involvement and
Decision Making
Family Decision Making
26th August 2008
Definition of Family
• Two or more person living together
• They should be related
– Either through marriage
– Or through blood relation
– Or through adoption
Role and function of family
• To look after the economic well being of
the family members
• To provide emotional support to each other
• To establish suitable life style to the family
• To ensure proper socialization of members
Types of families
• Married couple with children – 37%
• Married couple with children above the age
of 18 years – 23%
• Single parents living with children – 2%
• Couples not married living together – 3%
• Joint families – 35%
Consumer Socialisation
• The process by which a person acquire the
skills knowledge and attitude necessary to
function as consumers
Factors Influencing the decision
making
• Parents influence children in Brand preferences
• Price – quality relationship is taught to the
children by parents
• Affluent children have their own perception on the
Price – quality relationship
• Friends / TV Advertisement / Mass Media
influences individuals
• Parents also teach how to be an economical and
effective shopper.
Concepts
• Observations
• Co-shopping
• Direct –experience
• Cultivation theory
• Socialisation by rewards and gifts
Stages of Consumer Socialisation
• Preoperational Stage Children and Ice-
creams
• Concrete operational stage Children -
Logic
• Formal operational stage Children –
earning
Consumption roles
• Gate keepers
• Decision makers
• Buyers
Transformation of product for
usage
• Users
• Maintenance
• Disposers
• Initiators
• Information collection
• Dynamics of decision making
What is a group
• A group may be defined as two or more
people who interact to accomplish either
individual or mutual goal.
• Membership Group
• Symbolic Group
Reference Group
• A reference group serves as a point of
comparison
– Normative reference groups – child’s own
family
– Comparative reference groups – friendly
neighbour hood / neighbour is an envy
– Indirect reference groups – Movie star
Factors affecting reference group
influence
• Information and Experience
• Credibility Attractiveness and the power of
the reference groups
• Conspicuousness of the product
Consumer related reference
groups
• Friendship Groups
• Shopping Groups
• Work Groups
• Virtual Groups or communities
• Consumer action groups
Young Person
Family Members Friends
Influence more basic
Influence more expressive
Value / Behavior
Attitudes / Behavior
Moral Religious principle
Style
Interpersonal skill
Fashion
Dress / Grooming
Fads
Manners / Speech
In / Out
Educational motivation
Acceptable consumer behavior
Occupational / career options
Consumer Behavior norms
Adolescent Older
Preadolescent Teenager
Consumer Involvement in
Decision Making
• Involvement is dependent on
– Nature of the product
– Psychology of the consumer
• Degree on Involvement
– High Involvement – Long Product / Service life
– Medium involvement – Medium
– Low Involvement – Short shelf products
Antecedents to involvement
• Ego involvement
• Commitment
• Communication involvement
• Purchase importance
• Extent of information secured
Decision making
• It is the process by which a buyer decides to
purchase a particular product out of various
alternatives
– Awareness
– Interest
– Evaluate
– Trial
– Accept / Reject
– Adopt
Process of Decision making
• Performance of the product
• Physical risk with the product
• Financial Risk
• Reliability Risk
• Social Risk
• Ego & Psychological Risk
• Durability Risk
Process to develop strategies to
reduce risk
• Information search
• Brand Loyalty
• Purchase of Reputed Brand
• Buying from reputed stores
• Buying expensive products
• Assurance from suppliers
Model of Consumer Decision making
Social Cultural Inputs
Marketing Inputs INPUT Family /Social Class
Product
Culture / Subculture
Promotion
Economic class
Price
Region / Religion
Place
Informal Sources
Channels of Marketing
Non commercial sources
PROCESS
Need Recognition
Pre-purchase search OUTPUT
Evaluation of alternatives PURCHASE
