UNIT 2: CONSUMER INVOLVEMENT AND DECISION MAKING [CONSUMER BEHAVIOUR CH-2]

 

2.1 Consumer Involvement

Definition:
Consumer involvement is the level of concern or interest a consumer exhibits during the purchase process, influenced by financial, social, physical, and psychological risks.

Types of Involvement:

  1. Low Involvement:
    Routine purchases with minimal effort (e.g., buying groceries).

    • Example: Regularly buying toothpaste without researching brands.

  2. High Involvement:
    Decisions requiring research due to high risks or cost (e.g., buying a car or house).

    • Example: Evaluating multiple models and brands before purchasing a car.

Factors Affecting Involvement:

  1. Personal Relevance:
    A product that aligns with an individual’s needs or values.

    • Example: A fashion enthusiast investing time in choosing a trendy outfit.

  2. Financial Risk:
    Higher involvement when the purchase involves significant expenditure.

    • Example: Buying a house.

  3. Social Risk:
    Concern about social judgment.

    • Example: Choosing an elegant dress for a wedding.

  4. Physical Risk:
    Impact on health or safety.

    • Example: Selecting quality tires for a car.

  5. Psychological Risk:
    Internal conflict with values.

    • Example: Avoiding products not aligned with environmental ethics.

2.2 Nature of Involvement

Definition:
Involvement is the interest generated by the perceived relevance of a product/service, influenced by the intensity and persistence of the decision-making process.

Properties:

  1. Intensity:
    Level of effort and research involved.

    • High: Thorough research (e.g., luxury watches).
    • Low: Minimal effort (e.g., snacks).

  2. Persistence:
    Duration of concern during decision-making.

    • Short-term: Temporary (e.g., buying a movie ticket).
    • Long-term: Enduring (e.g., choosing an insurance plan).

  3. Focus on Marketing Mix:
    Consumers may focus on:

    • Product features.
    • Price comparisons.
    • Brand reputation.
    • Promotional offers.

2.3 Antecedents of Involvement

Definition:
Factors influencing the level of consumer involvement before the decision-making process.

Antecedents:

  1. Personal Factors:
    Individual traits like lifestyle, values, and social class.

    • Example: A health-conscious person researching organic products.

  2. Product Stimuli:
    Features, benefits, and risks of the product.

    • Example: Higher involvement in choosing between brands of electronics with varying features.

  3. Situational Factors:
    The context or occasion for the purchase.

    • Example: Being more cautious when buying gifts for a close friend vs. routine shopping.

Social Influences:

  1. Peer Pressure:
    Shopping with friends or colleagues can raise awareness about brand/image.

    • Example: Buying premium gadgets to match social expectations.

  2. Social Visibility:
    Higher involvement when a product will be publicly used.

    • Example: Choosing an outfit for an important business meeting.

Decision-Making Continuum

  1. Routine Response:

    • Low involvement.
    • Familiar products require minimal research (e.g., snacks).

  2. Limited Problem Solving:

    • Moderate involvement.
    • Some research needed for unfamiliar brands.
    • Example: Buying fashion items based on trends.

  3. Extensive Problem Solving:

    • High involvement.
    • Significant research and evaluation.
    • Example: Choosing a university for higher studies.

2.4 Effect of Involvement on Decision Making

2.4.1 Information Search

  • Definition: Consumers look for additional information after identifying a need.
  • Process: May involve heightened attention (e.g., noticing ads) or active searching.
  • Example: A person exploring car options by watching ads, visiting showrooms, or discussing with friends.

2.4.2 Information Processing

  • Definition: Transforming and analyzing information to make it useful for decision-making.
  • Explanation: Includes any observable change, like comparing product features.
  • Example: A consumer comparing laptop specifications (e.g., RAM, processor speed) online.

2.4.3 Information Transmission

  • Definition: Sending processed information from one person or place to another.
  • Methods: Can be ancient (verbal communication) or modern (emails, social media).
  • Example: A company sharing product details through emails or advertisements.

2.4.5 The Purchase Decision

  • Definition: Mental process leading to the selection of a product or brand.
  • Types:
    • Routine purchases: Less critical (e.g., toothpaste).
    • High-stakes purchases: Major impact (e.g., buying a house).
  • Example: Deciding between iPhone and Samsung after evaluating pros and cons.

2.4.6 Post-Purchase Behaviour

  • Definition: Thoughts, feelings, and actions after a purchase.
  • Key Focus: Ensuring satisfaction to encourage repeat purchases.
  • Example: A customer feeling satisfied after buying a high-quality product, leading to brand loyalty.

2.5 Levels of Involvement

Continuum of Involvement:

  1. High Involvement (Extensive Problem Solving - EPS)

    • Details: High effort, internal & external information sources, and consideration of multiple brands/sellers.
    • Example: Researching extensively before buying a car.

  2. Moderate Involvement (Limited Problem Solving - LPS)

    • Details: Moderate effort with limited information search.
    • Example: Buying a mid-range phone after a quick comparison.

  3. Low Involvement (Routine Problem Solving - RPS)

    • Details: Minimal effort, habitual decisions, often based on brand loyalty.
    • Example: Purchasing daily-use items like milk or bread.

Key Points:

  • Effort Required: High in EPS, moderate in LPS, low in RPS.
  • Brand Loyalty: High in RPS, lower in EPS.
  • Cognitive Dissonance: Strong in EPS, minimal in RPS.
  • Product Types:
    • High involvement: Specialty goods (e.g., luxury cars).
    • Low involvement: Convenience goods (e.g., snacks).

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