Family Decision Making Purchase of Vehicle

1.0 Introduction.

Interviewing 3 family to identify the decision maker in the family. The decision maker of a family is important. The way the decision made during a buying process involves of few factors such as information, purchasing ability and quality of product. Decision makers do make decision based of the price , product, promotions and place the product and service available.

The way the decision maker makes the decision can affect the way the family members to purchase goods. This is because the behaviour and attitude to purchase become the example for family members as guide. The memory of from external influences the individual habit and beliefs. This can create the culture of consumption in a country. Decision makers are the purchaser who will provide the financial towards purchasing items. The decision maker will search for information before purchasing and relate the purchase to be beneficial for family members.

Family (A) purchase of a vehicle.

The decision maker of this purchase in Family A, is made under the father of the family. The father as the decision maker is the influence of the family. The car which was bought by Family A is a Honda City. The father who made the decision, relates that the purchase of this car is beneficial for the family and worth the price. The reason to this decision is, father belief that the car is big and can give comfort to the family if they are taking a vacation.

The case shows that the family’s decision maker is making a decision base on belief and perception of the product. The product identity has given the decision maker a positive affirmation towards the company brand.

The father is the decision maker in this purchase because, the paying amount is made by the father. Although the decision maker makes the purchase, before the purchasing the individual do seek information before purchase. The search of information is together with his elder son and sales person, who actually accompanied the purchaser towards the vehicle at the Honda car showroom. The information search is basic towards the purchasing price, the post purchase of the vehicle, the time period of car processing, the insurance and colour of selections by the Honda company.

Family (B) purchase of family groceries.

The purchase of food and home supply in Family B is made under the mother and brother of this family. The decision made from the mother of this family is towards the benefits of foods and appliances to be purchase for use at home. The nutrients factors and cost of food supply will be determined by the mother who does the groceries shopping at the supermarket.

Information gathered from this mother of the family will determine the final purchase of the supply. However the brother played the role of giving income to the Family B. Therefore the purchase of food supply in family is also from the elder brother who provides the income.

The factors from promotion of food supply and income will change the perception of mother in family to purchase the food. Shopping market like Tesco Ipoh which produces the promotions and Tesco brands will divert the mother of Family B in regarding the income to choose and buy the Tesco brands product. Example of product such as paper rolls, detergents and necessary goods. The factor that affected the decision making is from the promotions provided by the Tesco Choice and income.

The location of the department store also is convenient for this family B , who lives nearby. Therefore purchasing goods and food supply from place has become a decision towards the family groceries .

Family (C) purchase of Insurance.

The insurance plan for the Family C is made purchase under the decision of the father and mother. The parent of this Family C made the purchase of the insurance for this family base of few consideration. The consideration of family protection of financial assist of the insurance. The decision is made with assist of specialized sales person towards the different plans available. The decision was made under the perception of safety.

The plan bought of this Family C is the third party insurance for the vehicle for emergency purposes. The plan and price to purchase this insurance was reasonable due the perception and exposure of the importance of issuing insurance from socially.

Therefore the purchase was made. Factors that affected this family towards the decision making was the promotional ,price and perception of social recommendation. The ability for the family purchase the insurance plan is flexible and promising towards the family.

1.1 Income affects the decision making.

Product, Price ,Promotion and place can affect the decision made in the family. The product innovations with reasonable price do trigger the consumer interest to purchase. Family will then consider with information from the market place during the decision making process. Finally making the final purchase base of the income available from the family to support the decision.

The income also become the factor to affect the family decision making process. The purchase of vehicle of in Family A is strongly affected by the family income. The capability to purchase with final decision was made by the father. Family B who also affected by income to purchase goods and home appliance base of income. The mother as housewife who depending on his son to support the living of family in order to purchase the goods. Finally the purchase of insurance for vehicle in Family C.

Income will affect the final decision of purchasing even though the price ,promotion and product is attractive for the family. Therefore the income earn by family can change the behaviour of the family to purchase goods and service.

1.2 Product, price ,promotions and place as influence to purchase.

1.2.1 Product.

The family who made decision towards the purchase are influence by thius factor. The product innovation and creditability. The purchaser is more attracted towards the innovation of product with the ability to purchase from income. For example the Honda car and Tesco choice brands in Family A & B.

1.2.2 Price

The reasonable price of Honda car comparing to a Proton Inspira. The price is more attractive purchasing the Honda with the creditability of the company and brand. Therefore the Family A was influenced by the price factor. The price of goods sold from the Tesco choice was reasonable in according with income of Family B toward home appliance and food supply. Therefore the price has influence the family to make decision.

1.2.3 Promotion.

The promotional of goods especially of the department store of Tesco choice have influence the Family B to purchase goods and being brand loyal to the product. The sales that created by company give opportunity for the family to finance their income and give the consumer the comfort to keep selecting the brand of the company. For example in Family B purchasing the goods from Tesco department store.

1.2.4 Place.

The location of organization can influence the consumer to make the decision. The location which is strategic can give the consumer the access to the business easily. For example Family C Who purchase the insurance . The insurance company are located near to the banking of this family. Therefore the processing and enquiries are more easily for this Family C.

The department store Tesco, which located at a strategic point between Medan Ipoh and Ipoh garden, has given the opportunity for Family B to choose the company products and promotions.

1.3 Decision makers influence towards family.

The decision maker who made the decision towards purchasing goods can affect the family decision making process. The decision maker is a major role because the final purchase are made under their authority.

The ability to search for information and gathering them will become a example for their children. Comparing the products from brand to brand and selecting the choice of product can influence the family members in demand for goods and services.

The Family A , who experience the post purchase will allow the children to understand that post purchase is part of a purchasing process. These behaviours can affect to educate the younger consumers to be knowledge able towards consumption needs from the market. The family’s decision maker have indirectly showed examples and probably become a memory for the family member to understand the purchasing behaviour and condition of products and services from the market place. Therefore the behaviour of consumption in family is careful towards purchasing. The perception and belief of consuming a product in market place will be learnt from family members.

1.4 Conclusion

Consumption needs are different from family to family. The way the family purchases are unique. Information and accessibility to purchase are important for family. The decision maker is a major role because the final purchase are made under their authority. Decision makers do make their decision base of the factors from product quality, price, promotions and place to access the product.

The influence the decision maker in family will educate and provide the example for the family members. The behaviour of consumption in family will be influenced by the decision makers. The ability to search information, comparing and contrasting the product and services and finally purchasing the item.

Question 4.

Friends and society opinion on products and services are always one of the factor influencing individual buying behaviour, comment on how Facebook enhance the impact from friends and society towards buying behaviour.

2. 0 Introduction.

Facebook is a social network from the internet. It is one of a facility for users to connect with friends and develop a society from the internet world. The Facebook allows users to be expose to a few factors that can influence an individual consumption behaviour.This is because of the opinions and comments from Facebooks friends and society can change the individual perception to purchase a product initially.

The usage of Facebook which become a important usage in this millennium will impact consumers. This is because Facebook do not only provide a connection for friends and society to connect together, but also to business entrepreneurs to advertise their products and service using this facility. Therefore the communication from business to audience are wide in Facebook. The individual will be expose to the business advertisements.

2.1 Friends and Society impact towards individual buying behaviour.

The friends in the society is a part of the influence impact towards an individual in a buying behaviour. The factors to this mostly come from the belief and perception of friends which give affirmation towards the product an individual wishes to buy. Friends with similar interest towards the product can affect the product of a company. The belief and perception as a factor in the social is crucial. Therefore the product features are important towards the consumer. The society consist of the expert and novice consumer. The expert consumer are the consumer who are knowledgeable towards the particular product and services. Therefore this mean that, this category of consumer are consider the tester of products and services before the novice. The impact happen when the novice seeks the information from peers. Thus this acts as the influence towards the interested individual.

The example of purchasing the soft drinks. The novice user in a social enviroment is interested in purchasing the soft drink of few selections, but with consideration, the search of information from the peers happen. The expert user as the peers can be a user of the product which suggest the novice user to which class of product to purchase. Therefore the individual make the purchase base of this social influence factor. The impact is positive and negative impact. With the negative reviews will change the decision made by the individual. Whereas the positive will persuade the individual to purchase.

Emotional consumers.

The impact of emotion towards consumer can affect the consumers rationality to consume a product and service. Therefore consumers are not always rational because they are driven by their emotions. Environment and persuasion can affect the consumer to make a decision. Friends and society is one of the influences which can affect a potential purchaser to make a decision to purchase other than the information available from the product.

2.2 Perception exposure through Facebook

Facebook the world famous social network is one of the influence towards a consumer purchasing behaviour. This is because , the usage of Facebook have allow consumers to share their experience of particular product or services among their friends. The experiences from users who have tried the product may experience a good or negative experience. Therefore may allow other friends to notice the particular brand or product as a critic of precaution for other users.

Base on the ability of the social network of Facebook which allow user to share their thoughts. It has allow the tester to voice out. Novice user will develop a belief and perception towards the particular brand or product. The novice user may purchase those product base of the belief developed and experience shared by experience users. These is the external influence on the consumer’s purchasing behaviour. Therefore the purchasing behaviour is influenced by the usage of Facebook. The exposure of Facebook with the information shared through different users and friends in this society will create the consumer to be knowledgeable towards the particular product and service on the market.

Among of various purchasing behaviour such as, contrasting and comparing, information search, and post purchase of product will be learnt and practiced by the consumer.

Example of how consumer shares their perception to other potential consumers.

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Diagram: Consumer Andrew Chin trying to advise other users to avoid base of experience.

2.3 Facebook as a business tool.

The usage of Facebook is not only the influence factor toward an individual belief system and perception but acted a tool for business owner to sell and network their services and product. Information will be shared and given out to subscribers of the account. Certain groups and social friends may own business related accounts. Therefore, the business owner have opportunity to market their product and service using this internet facility.

The business owner will use the facility and provide information to the potential users who have subscribed to their group. The information will be given out from the business owner to their potential consumer. Consumer will then be gathering the information before they make a decision and finally towards the purchasing of the product or service. An example of this activity is the advertising of the company. The data not just will be reaching to selected group but almost everyone who uses this internet facility.

Advertising ability from the Facebook, will give the consumer the information they seek. Some of the information will be needed some are newer information which consumers do not know. Therefore, the consumer will have the memory towards the product and services intended for sale.

Example of business organization , uses the Facebook facility to reach the consumer.

2.4 Change of attitude towards purchasing behaviour.

The Facebook usage can change the attitude to purchase a good and service in a consumer. The habit and memory shared among other users and organization will allow the individual to purchase using the Internet. Purchasing from the internet is a way to buy and shop for consumers.

Consumer will divert the habit to go to the retail stores and begin to purchase directly from the recommendations of organization with their business webpage, with accredited merchants. Therefore the habitual form of going to retail will be limited. Organization have intelligently market the product towards the potential consumers.

Consumer will be expose to organization brand and knowledgeable towards the product the organization have produced to supply for consumers. The merchandised sold to consumer this way will allow the consumer to experience a different purchasing behaviour thus, the post purchasing of merchandize from a webpage are more legal with the paper works. Comparing towards purchasing from a retail store, the sales person may not be attending to job at different hours of time. The conflict of merchandise from organization and consumer will be limited from the purchasing behaviour.

2.5 Consumer’s memory impact from Facebook.

Although purchasing from the internet as an option, consumer also do purchase from regular store. The purchase process which consist of encoding , strorage and retrieval of memory before a purchase is made is within the consumer. The consumer who often expose to the updates of the information may have stored the memory of information given and proceeds to purchase the merchandise . The usage of the memory as information will assist the consumer to make a decision. A purchase will take place due to the decision made during encoding the information given.

The habit and attitude of consumer will adapt towards how the consumer perception and experience as a memory to purchase goods. The memory can turn into a long term memory for the consumer.

3.0 Conclusion.

Exposure to information can change the decision make by an individual. The positive or negative review towards a product can influence the consumer to either purchase and not. The negative review may not only make the purchaser to not purchase but is bad for business. The users of Facebook are more expose to free information provided by business owners individually through Facebook. It is very efficient.

The Facebook can impact and change the consumer purchasing behaviour. The regular purchasing behaviour from the store can change and persuade the individual to experience the internet purchase. Facebook as a tool for business is beneficial. The user of Facebook can be knowledge able consumers and create healthy consumption behaviour in the society.