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