perception beliefs, life styles and motivation. Further, environmental factors also play a role in determining how and when a consumer makes decision to purchase. These factors are reference groups, culture, family, social class and household. Factors mentioned here play a huge role hence determine the consumer decision on whether to purchase certain products or not (Kotler, 2004). 2.2 Theoretical Literature Marketing decisions are based on assumptions about consumer behavior (Hawkins, 2007). In order to create value for consumers and profits for organizations, marketers need to understand why consumers behave in certain ways to a variety of products 6
and services offered. In order to determine the factors that influence the preferences of today’s consumers, an understanding of how consumers generally think and behave in buying situations is vital. Understanding consumer behavior and “knowing customers,” is never simple because they may say one thing but do another or change their mind in the last minutes of purchase process. They may not be in touch with their deeper motivations. These issues have led to theories like that of the black box approach which shows how marketers are not able to understand what is going on inside a consumer’s mind thus keeping marketers in the dark when it comes to the purchase decisions and the whole process involved. Marketers cannot successfully advertise or reach customers who they do not understand hence in striving to know customers, marketers and those with interest study consumer behavior to understand individuals or groups and the mental, physical process and emotions they use when or go through when in need to select, obtain and consume services/products to satisfy needs and wants.( Hawkins,2007) Figure 2. 1: show the reality of the customer buying behavior Source: Research Design 2017 2.2.1 Consumer Decision Making In consumer behavior, it has remained crucial to understand the way consumers adapt, change and use decision-making strategies (Moon, 2004). As we saw, consumer decision making is defined as the “behavior patterns of consumers’ that 7 Mobile Price Mobile Brand Mobile quality Mobile durability Mobile size Mobile Design Demographic Psychographic Behavioral Age Gender Performance and Image Technology adoption Reference groups Gender Value- Expressed
precede, determine and follow on the decision process for the acquisition of need satisfying products/ services. Researchers, marketers and big companies alike, have always has been interested by consumer decision process. This goes back to 1950’s when various studies focused on purchase action in trying to understand why what, why and when consumers purchase. After 1950’s however, things changed and modern concepts focused not on purchase action alone but incorporated various studies concerning consumer decision making to a wider range of activities and factors. Current studies show that more activities are involved when studying consumer behavior as purchase decisions are influence by multiple factors that are not seen and at times not known (Engel, Blackwell and Miniard, 1995).
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