Question

1. Identify and describe the psychological and functional factors that influence the consumer decision process.

2. Discuss how you would choose between three dining out options. Provide an example of each option. How do each place create value?

3. Identify the determinant attributes that set each of these apart. Use those attributes to develop a compensatory purchasing model similar to the one in Exhibit 6.2.

4. Which factors examined in this chapter might have the most impact on consumers' propensity to go out to eat and choose of these dining options.

Answer 1

Answer)

These are the below psychological and functional factors that influence on the consumer decision process

Psychological factor : Psychological factors come in the consumer decision process through the motivation , Perception , Past Experience and Learning , Brand Images

Social Factor : Social factor influence to the consumer in terms of status of symbol or nearby societies , where consumer live in .

Economical Factors : Economic factors influence on the consumer decision by their purchasing powers or their personal income .

Personal Factors : Consumers lifestyle , Age , Personality etc are influence on the decision of buying behavior

Cultural Factors : It is the factors as per the consumers Religion , Age , Gender .

Three consumer behavior option ( Please see in the exhibit 1)

I am going to discuss how above three factors creates value with each other

Mr Bond going to buy the Rolls-Royce motor car . In the society of MR Bond everybody likes the Rolls –Royce motor car ,however in this society except Mr Bond nobody personal income allowed to buy the Rolls-Royce. Mr Bond creates the some unique value in terms of status of symbol . Now Personal factors are also play a big role here because Mr Bond working as a chief executive officer and other friends of MR bond in the society are retired teachers , professors , engineers etc , who are not capable to buy such expensive things .   

Now we will discuss the attributes that use in compensatory purchasing model :

When supplier sell the material to the purchaser in the business to business model or business to consumer model below attributes are used in compensatory purchasing model .

Total Quality Management : Whether it is product quality or service quality . Supplier should fulfill the gap between customer expectation and customer perception . By fulfilling the gap long term healthier relationship always maintain in the contract of supplier and purchaser .

Performance of the Product : Supplier product performance increased the business volume and order strength will increase day by day .

Attitude of Supplier : Supplier attitude and behavior is most important attribute to maintain the long term relationship with the customer .

Accurate Price : Supplier product fair price gets the competitive advantage and gives the reasonable profit for the long term .

Flexibility : Supplier should change the product features ,taste, version etc as per the consumer requirement .

OTIF (On Time In Full ) : Supplier must supply the material as per the customer demands and provide the material to the customer on time without any backlogs or delays .

Exhibit 1