Tugas CDS Merged
Tugas CDS Merged
Tugas CDS Merged
ASSIGNMENT
Proposed as one of the assignments for MM5003 Marketing Management
Written by:
29119451
2020
Introduction
Consumers make buying decisions every day and many people do not even know the factors
that drive them to this decision. There are factors behind every buying decision that can come
from cultural, social, personal or psychological factors. Each of these factors includes
dimensions that can be used in marketing. Marketers can use these factors so subtle that
consumers might not even recognize it. By recognizing the pattern of which consumers
deciding to buy some product (either low-priced or high-priced product), marketers can drive
or increase stimuli on consumers to make marketing task more effective and efficient (Kotler
& Armstrong, 2010).
On this assignment, there are two objectives. The first one is to examine if personal, social and
psychological characteristics have effect on consumer buying behavior. The second objective
of this assignment is to gain knowledge on how the purchase decision process is being made
by individual consumers.
Every consumer is an individual, but still belong to a group. The group to which a consumer
belongs is called a membership group. This is a direct and simple classification. The second
group type is a reference group. The reference group influences the self-image of
consumers and consumers’ behavior. The reference group provides some points of
comparison to consumers about their behavior, lifestyle or habits. Usually there are many
smaller reference groups, which are formed by family close friends, neighbors, work group or
other people that consumers associate with. The groups to which a consumer does not belong
yet can also influence. These aspirational groups are groups where a consumer aspires to belong
and wants to be part in the future (Kotler & Armstrong, 2010).
Individuals play many different roles in their lives. Each role consists of activities and attitudes
that are expected from an individual to perform according to the persons around him. (Kotler
& Armstrong, 2010). Social status reflects the position that individuals have in social groups
based on such things as money and wealth, education or occupation. In many societies, status
is important and people want the admiration of others. Social status can be acquired by being
successful in life or being born into money. Product and brand selection often reflects the social
role and status (Solomon, 2004).
2. Personal Factors
An individual’s decisions are influenced by personal factors such as a buyer’s age and life
cycle state, occupation, economic situation, lifestyle, and personality and self-concept (Kotler
& Armstrong, 2010).
Consumers’ change during their life and buying of products alter depending on age and stage
of life. Age related factors are such as taste in food, clothing, recreation and furniture.
Moreover, environment, values, lifestyle, hobbies and consumer habits evolve during lifetime.
A consumer’s occupation and purchasing power influence purchasing decisions and buying
behavior. The income level affects what consumers can afford and the perspective towards
money. People, who share similar occupations, tend to have similar taste in music, clothing
and leisure activities. They usually socialize with each other and share the same kind of values
and ideas. Income level affects on what consumer can afford and perspective towards money.
(Solomon, 2004).
Consumers’ lifestyle tell how the person live and spends money. It is combined from earlier
experiences, current situation and congenital characteristics. The product choices that
consumers make are related to their lifestyle (Khan, 2006).
Personality determines how we see ourselves and the world around us as well as how other
people see us. Attitudes, values and people around us shape our personality. This is known as
self-concept. Kardes et al. (2011). describes the self-concept as follows “Self-concept is often
described as the totality of an individual’s thoughts and feelings regarding him/herself as
an object.” In another words, it is the image that people hold about their selves formed by
attitudes and beliefs. Many brands have developed an image and personality that correspond
with consumers’ values and traits. It allows consumers to express themselves through brand
choices. (Kardes et al. 2011). There are five dimensions of brand personality: sincerity,
excitement, competence, sophistication and ruggedness.
Each of these dimensions includes different factors that relate to human personality
dimensions, as shown in Figure 1. In the first dimension sincerity brings amiability of the brand
by reflecting honesty and down-to-earth values. Excitement offers consumers up-to-date
information and a spirited alternative like technology brand Apple. When using Mac
computers, consumers can feel their selves young and laid back. While a brand that stands for
competence offers responsibility and security to consumers. Sophistication affects upper
class consumers by charming with luxury, e.g. designer products such as Gucci or Rolex. The
fifth dimension is ruggedness that attracts consumers opposite of sophistication. Ruggedness
represents brands that are seen as tough, strong and outdoorsy. (Kotler & Armstrong, 2010).
A consumer is an individual who has different kind of needs. These needs can be biological
like thirst or psychological arising from the need of recognition or belonging. A need can be
aroused to a sufficient level of intensity when it alter a motive. A motive is basically a need
that drives a person to seek satisfaction. Abraham Maslow is probably the most know
psychologist who has examined these human needs. He sought to explain why humans are
driven by different needs at different times (Kotler & Armstrong, 2010).
Past experience or learning also affects behavior. Learning comes from action. Learning
illustrates changes in a person’s behavior that emerge from experience. Through
learning and experiencing, consumers acquire beliefs and attitudes. A belief is a vision that
consumer has on something. It can be based on real knowledge, faith or opinion. External
influence like family or neighbors combined with learning produces beliefs that will
influence consumers’ buying behavior. Different kind of people have different attitudes
concerning religion, politics, food, music and many more. The attitude describes
consumers’ feelings or evaluations toward an object or idea. Both beliefs and attitudes are hard
to change. Those are anchored deep in consumers mind and can be part of a person’s
personality (Kotler & Armstrong, 2010).
4. Cultural Factors
Culture can also affects how consumers buys product. Some culture maybe eager to buy
product because they are prohibited by their laws to consume or use it. Some culture use
substitute product and maybe consider products as taboo.
Buyer Decision-making Process
A consumer engages in purchasing activities several times per day. The purchase itself
is the only visible evidence of a more complex process that a consumer goes through for every
decision he or she makes. However, every purchase decision is different and requires different
amount of time and effort.
A consumer’s decision-making process includes five stages that the consumer goes through
before the actual purchase. During these stages the consumer recognizes the need, gathers
information, evaluates alternatives and makes the purchase decision. After the actual purchase
comes post purchase behavior where the consumer evaluates the received satisfaction level.
(Kotler & Armstrong, 2010). Kotler and Armstrong (2010) suggest that the consumer can skip
a few stages during a routine purchase. However, when a consumer faces a new and complex
purchase situation, all of these five stages that are shown in Figure 3, need to be used to
complete the buying process.
A decision-making process starts with the recognition of need. There are a few types of
classifications of need recognition. According to Solomon (2004), type of need recognition
includes:
1. Functional need: the need is related to a functional problem. The consumer
purchases a washing machine to avoid doing laundry by hands.
2. Social need: the need comes when a consumer wants social recognition or desire
belongingness. The consumer can purchase luxury items to look good in front of others.
3. Need for change: the consumer feels need to change. This can result in the purchase of
new clothes or furniture to change current appearance (Perreau, 2014).
At the second stage of the decision-making process, the consumer engages with information
search. Sometimes consumers can choose products without any information and other times
information need to be searched carefully for identifying all alternatives. (Solomon, 2004). The
consumer can get information from multiple sources by talking with friends or family,
reading magazines or using the Internet search or handling the product. The amount of the
searching will mostly depend on your drive, obtaining of the information and satisfaction got
from the search. Nowadays consumers get a huge amount of information from commercial
sources that are controlled by marketers. Still, the most effective sources tend to be personal
such as family or friends. Consumers can obtain information and increase awareness towards
available brands. This information helps consumers to drop some brands when making the final
selection of the brand. (Kotler & Armstrong, 2010).
After information is collected, the consumer will be able to evaluate the different alternatives.
The evaluation of alternatives will vary among customers and purchases. In some cases
customers make little or no evaluation and make their buying decision based on impulse and
intuition. In cases where little or no evaluation of alternatives is used can be originated by a
habitual decision process. On the other hand, the consumers who are engaged to an extended
problem solving process may carefully evaluate among several brands. The alternatives that
are actively considered during the selection process are known as consumers’ evoked set.
This evoked set consists of products or brands that are already in the consumer’s memory plus
important ones in retail environment. Even if a consumer ponders among many
alternatives, the evoked set usually includes only a small number of alternatives. These
alternatives share few similar features with each other. (Solomon, 2004)
At the fourth stage, the consumer has evaluated alternatives and is ready to proceed to the
actual purchase itself. Typically, the consumer’s purchase decision is to buy the most
preferred brand. There are factors that can affect the consumer’s buying decision such as the
attitudes of others or beliefs about the brand created by marketers. (Kotler & Armstrong, 2010).
Sometimes to simplify purchasing decisions, consumers can make mental shortcuts that can
lead to hasty decisions. Particularly when limited problem solving occurs before making a
choice. These kinds of shortcuts can range from universal thoughts like “higher price products
are higher quality” or “buy the same brand than last time” to specific “buy the same brand that
my mother used to buy”. These shortcuts can turn out to be unfavorable to the consumer.
(Solomon, 2004).
The last stage of the buying process is post purchase behavior. After the consumer has
purchased the product, the consumer will evaluate the satisfaction level. If the consumer
feels disappointment, expectations towards the product have not been met. (Khan, 2006). If the
product meets expectations, the consumer will be satisfied and willing to spend more on this
specific brand in the future. Furthermore, consumers’ high level of satisfaction can be translate
into brand loyalty. This usually happens when consumers’ expectations have been exceeded
(Kardes et al., 2011).
Complex buying behavior can be initiated by a motive that is central to an individual’s self-
concept. The products that are bought seldom like a house or a car require considerable amount
of consideration before the purchase decision. The consumer is highly involved because the
product is expensive, risky and reflects the consumer itself. Many brands can be evaluated
separately to see which brand responds best to the set of desired characteristics. (Kotler &
Armstrong, 2010).
During dissonance-reducing buying behavior consumers are highly involved, because the
product can be expensive, self-expressive and bought infrequently. However, consumers see
little or no difference among the brands. It is a straightforward and simple activity to
choose a product among alternatives even if the consumer may shop around.
Habitual decision-making choices are usually made routinely with little or no conscious effort.
This is almost opposite to extended decision-making where information is searched. Many
decisions are made so routinely that the consumer does not even realize them before seeing
products in the shopping cart. It is almost like consumer works automatically without conscious
control. This kind of activity can be seen dangerous or stupid, but at the same time efficient.
The consumer can minimize the time used selecting products and energy spends on decisions
(Solomon, 2004).
The last type of decision-making is variety seeking buying behavior. As the name already
reveals, consumers are interested to change the brand for the sake of variety rather than
dissatisfaction. Consumers can make buying decisions without evaluation and evaluate
the brand during consumption. However, next time the consumer might pick up a different
brand simply to try another brand. (Kotler & Armstrong, 2010). These kind of decisions are
usually made with the products that are bought everyday like cookies or coffee. Marketers can
encourage consumers to variety seeking by offering low prices, free samples, or special deals.
Methodology of Studies
In this study the author has chosen different variables that are compared to each other to
reveal relationships. On one side there are social, personal and psychological factors such
as age, relationship status and occupation. On the other side there are issues related to
decision-making processes such as information search and evaluation of alternatives.
Data for this study was collected via an Internet survey. The author used Google forms
to create a self-administered questionnaire. The self-administered questionnaire was chosen
because the cost is low, minimal staff is required, respondents can stay anonymous while
answering and respondents can complete the form by themselves. The questionnaire was
published in Indonesia. The questionnaire can be seen on the end of this report.
The author gather the data from colleague. Two man and two women. Because the sample is
very small, leads to the situation that the sample is not representative. The sample technique
had to be chosen according to the fact that all consumers do not have an equal chance to take
part in this survey. Convenience or accidental sampling includes the aspect to draw samples
from the population that is close to hand. Data can be collected from population that is
conveniently available and willing to participate. The downside in this sampling method
is that it is the least reliable sampling method and findings cannot be generalized. (Powell,
1997).
The questions in the questionnaire were based on the theory of factors affecting consumer
behavior and the consumer decision-,making process. Questionnaire included a series of
multiple-choice questions and open- ended question. Questions were planned in the way
that respondents can choose a numerical answer that describes best the respondents’ attitudes
or opinions. Liker-type scale allows the respondent to express how much they agree or disagree
with the statement. (Vogt, 2007). These agree/disagree categories can be analyzed as ordinal
scales of the measurement level. The nominal level measurement has distinct categories, and
questions related to gender, age and status were scaled to this measurement.
The questions from two to five and 14 were created to measure the social and personal factors
of consumer behaviour. These questions concerned age, occupation, income, relationship
status, and personality and self-concept. Questions seven to nine were gathered
information about products; what kind of products that the consumer buys and how is the
buying pattern of the consumer. To receive information about psychological factors, the
author decided to ask consumers’ attitudes with questions ten. The questions asked about
the consumer’s prejudices and where they come from. Additionally, the consumer’s
motivation for the consumption was examined with question 13. To study the consumer’s
decision-making and buying process, questions 11 and 12 were created. The aim of these
questions was to find out influencing factors of decision-making and where consumers can
receive information during the buying process. Related to decision-making, question 16 purely
focused on information search. Question 15 was set to get general information about how the
consumer buy the product (buying process). The last question, number 17 was set to gather
information concerning brand switching. All of the questions can be seen at the end of this
reports.
Results
The author gather sample from colleagues as mentioned before, so the age of the respondents
are the same (included as limitations of the study). The sample is divided evenly by gender,
two males and two females. These respondents were given two questionnaires, one for low-
priced product and the other is for high-priced product.
From the form results, Figure 5 describe the occupation of the respondents. Mainly they are
students and the others are unemployed and employed as private employee. As can be seen
from Figure 6, the income of the respondents are ranged from Rp 0 to Rp 3.000.000. This can
be categorized as low-income. From Figure 7, the respondents is mainly single and only one
respondent is married. From Figure 8, the respondents mainly lives on Dago and only one
respondent lives on Cimahi.
For the first questionnaire, which is for low-priced products. The respondents recent
consumption are products that priced below Rp 15.000 and are basic needs (milk and melas).
From Figure 9, can be seen that the frequency when the respondents consume the products
varies; from rarely (less than one times a week) to often (more than three times a week). From
Figure 10, can be seen that the respondents is not always buy the same product from the same
brands every time. From Figure 11, can be seen that respondents mainly buys the product from
certain brands according to their past performance on consuming the products. This is also can
be seen from Figure 12 that shows the past performance is the most important factors that
influence the respondent’s decision to buy the product. Next is close person recommendation.
The others are similarly valued.
Figure 12 Factors that Influence the Respondents Buying Decision to Low-Priced Products
From Figure 13, can be seen that the decision that the respondents take to buy the product is
mainly because the review from others about the product and because of the past performance
or experience of consuming the product. The next important factors are from deals and promo
from the brands. The respondents are less influenced by ads, impulsive-buying condition, social
status, and trends. From Figure 14, the respondent’s reasons to consume the product is mainly
because they are get used to consume the product. One response is from addiction, which is
also can be related to usual consumption.
Figure 13 How the Respondents Decide to Buy Low-Priced Products
Figure 14 The Respondents Reasons to Keep Buying the Same Low-Priced Product from Certain Brands
From responses of question number 15, the respondents can be seen to have similar buying
process. They went to buys conventionally (on supermarket or grocery stores). They go through
less-thinking and less-effort decision and buying process.
From Figure 15, the respondents can be seen to easily change their loyalties because many
factors; price, promotion, quality, and brand reputation.
From Figure 16, can be seen that the respondents rarely buys high-priced product. The loyalties
from certain brands also varies, can be see from Figure 17. The reason why the respondent
buys certain high-priced product can be generalized to the trustworthiness of brand, either from
reputation or information about the product. This can be seen from Figure 18.
Figure 19 Factors that Influence the Respondents Buying Decision to High-Priced Products
From Figure 21, the reasons why the respondents buy high-priced products is mainly because
of basic needs, social status, inclusivity, and certain events. They are relatively similarly valued
by the respondents. From responses of question number 15, the respondents can be seen to have
similar buying process. They go through high-effort and time-consuming buying process. They
mainly compare the price, quality, and brand reputation (this is also can be seen from Figure
22). From Figure 22, other than price, quality, and brand reputation; promotion and trend also
influence loyalties of the respondents to certain brand.
Figure 21 The Respondents Reasons to Keep Buying the Same High-Priced Product from Certain Brands
Summary
There are differences in buying behavior from respondents related to decision making to buy
low-priced products and high-priced products based on the results of studies conducted.
Regardless of gender and personality of respondents (This is because the result can be
generalized even though the gender and personality of the respondents are varies) This is shown
in Table 1.
Table 1 Summary of Reports
Kardes, F., Cline, T., & Cronley, M. (2011). Consumer Behavior: Science and Practice. South-
Western Cengage Learning.
Khan, M. (2006). Consumer Behaviour and Advertising Management. New Age International.
Kotler, P., & Armstrong, G. (2009). Principles of Marketing: 13th Edition. New Jersey:
Pearson Education.
Perreau, F. (2014, March 8). The Consumer Buying Decision Process. Diambil kembali dari
the Consumer Factor: http://theconsumerfactor.com/en/5-stages-consumer-buying-
decisionprocess/
Powell, R. (1997). Basic Research Methods for Librarians. Greenwood Publishing Group.
Riley, J. (2012, March 8). Buyer Behaviour - The Decision-Making Process. Diambil kembali
dari Tutor2u: http://tutor2u.net/business/marketing/buying_decision_process.asp
Shuttleworth, M. (2008, March 8). Validity and Reliability. Diambil kembali dari Explorable
Psychology Experiments: https://explorable.com/validity-and-reliability
Vogt, W. (2007). Quantitative Research Methods for Professionals. Pearson Education. Inc.
Appendix
OTHER RESPONSES
3/8/2020 Customer Decision Making Process
Data ini tidak akan disebarluaskan kecuali mendapatkan izin dari responden
* Required
1. Gender *
Laki-Laki
Perempuan
17-27
28-45
45>
Mahasiswa
Pegawai Swasta
Pegawai BUMN/ASN/PNS
Pensiunan
Tidak Bekerja
Wiraswasta
Other:
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 1/7
3/8/2020 Customer Decision Making Process
0-1.500.000
1.500.000-3.000.000
3.000.000-4.500.000
4.500.000-6.000.000
6.000.000-7.500.000
7.500.000-9.000.000
9.000.000>
5. Hubungan Perkawinan *
Single
Sudah Menikah
In Relationship
Other:
7. Barang Murah (dibawah Rp50.000) apa yang terakhir Anda Beli (beserta Brand
nya) *
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 2/7
3/8/2020 Customer Decision Making Process
Sebulan 1x
Other:
Selalu
Kadang-Kadang
Jarang
Pengalaman Sebelumnya
Reputasi Brand
Other:
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 3/7
3/8/2020 Customer Decision Making Process
Pemasaran, Packaging,
Salespeople
Mempelajari Produk/Brand
atau Pengalaman
Menggunakan Produk
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 4/7
3/8/2020 Customer Decision Making Process
Tidak
Selalu Sering Terkadang Jarang
Pernah
Tergantung terhadap
kemenarikan iklan
Status Sosial
13. Apa Alasan Anda menggunakan produk tersebut (bisa lebih dari 1) *
Kecanduan
Kebiasaan
Status Sosial
Inklusivitas (Sense of Belonging)
Eventual
Other:
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 5/7
3/8/2020 Customer Decision Making Process
15. Ceritakan Bagaimana Anda membeli produk tersebut (prosesnya, cth: pergi ke
pasar, lalu memilih barang, menawar barang, membeli barang) *
16. Adakah faktor external lain yang dapat mempengaruhi pembelian produk
tersebut? (jika tidak ada berikan "-" saja) *
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 6/7
3/8/2020 Customer Decision Making Process
17. Faktor apa yang dapat membuat anda berubah pikiran untuk membeli produk
lain? (Bisa Lebih dari 1)
Harga
Promosi
Kualitas
Reputasi Brand
Environmental Issues
Trend/Social Effect
Other:
Forms
https://docs.google.com/forms/d/13iScQcAB-yiZo2aAP9N_tRj7X80iNUXQoIpIKS5xKYk/edit 7/7
3/8/2020 Customer Decision Making Process
Data ini tidak akan disebarluaskan kecuali mendapatkan izin dari responden
* Required
1. Gender *
Laki-Laki
Perempuan
17-27
28-45
45>
Mahasiswa
Pegawai Swasta
Pegawai BUMN/ASN/PNS
Pensiunan
Tidak Bekerja
Wiraswasta
Other:
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 1/7
3/8/2020 Customer Decision Making Process
0-1.500.000
1.500.000-3.000.000
3.000.000-4.500.000
4.500.000-6.000.000
6.000.000-7.500.000
7.500.000-9.000.000
9.000.000>
5. Hubungan Perkawinan *
Single
Sudah Menikah
In Relationship
Other:
7. Barang Mahal (diatas Rp500.000) apa yang terakhir Anda Beli (beserta Brand
nya) *
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 2/7
3/8/2020 Customer Decision Making Process
Sebulan 1x
Other:
Selalu
Kadang-Kadang
Jarang
Pengalaman Sebelumnya
Reputasi Brand
Other:
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 3/7
3/8/2020 Customer Decision Making Process
Pemasaran, Packaging,
Salespeople
Mempelajari Produk/Brand
atau Pengalaman
Menggunakan Produk
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 4/7
3/8/2020 Customer Decision Making Process
Tidak
Selalu Sering Terkadang Jarang
Pernah
Tergantung terhadap
kemenarikan iklan
Status Sosial
13. Apa Alasan Anda membeli produk tersebut (bisa lebih dari 1) *
Kebutuhan Dasar
Status Sosial
Inklusivitas (Sense of Belonging)
Eventual
Trend
Other:
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 5/7
3/8/2020 Customer Decision Making Process
15. Ceritakan Bagaimana Anda membeli produk tersebut (prosesnya, cth: pergi ke
pasar, lalu memilih barang, menawar barang, membeli barang) *
16. Adakah faktor external lain yang dapat mempengaruhi pembelian produk
tersebut? (jika tidak ada berikan "-" saja) *
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 6/7
3/8/2020 Customer Decision Making Process
17. Faktor apa yang dapat membuat anda berubah pikiran untuk membeli produk
lain? (Bisa Lebih dari 1)
Harga
Promosi
Kualitas
Reputasi Brand
Environmental Issues
Trend/Social Effect
Other:
Forms
https://docs.google.com/forms/d/1tjFVX-nIOQttFijiyF2fSBzuNWjcX3iOZG7cSCi-TmQ/edit 7/7