Consumer Decision-Making Process (Case: high involvement purchases)

Chapter 1

Introduction

In this paper we will discuss about the consumer decision-making process especially for high involvement purchases  

Key words : Consumer decision-making process, high involvement purchases.

Answer:

Chapter 1

Introduction: Consumer Decision-Making Process

Businesses can improve their marketing strategies by understanding why and how customers react in specific ways while making purchases. Comprehending consumer purchasing behavior provides insight into how customers weigh the advantages and disadvantages of many options (such as brands, products, and retailers) and make decisions, as well as how the consumer's surroundings (such as culture, family, and the media) affect that consumer. Additionally, it makes clear how different items affect consumer decision-making and motivation. All of this enables us to improve our marketing campaigns and strengthen consumer connections.

This is particularly true when we're planning to develop an integrated marketing communication program. Our capacity to address customer needs during the decision-making process will have a significant impact on how we choose the appropriate and efficient marketing message mix. 

The type of decision-making that consumer use to purchase a product does not necessarily remain constant rather it varies in accordance with the product’s characteristics (Carl, Lamp, & Hair, 2010). That is why, in the theory of consumer behavior, we know a variety of consumer decision-making models or consumer behavior models. In the decision-making process, we know three categories in the decision-making process: Cognitive, Habitual, and affective (Solomon, 2018). 

Picture 1. The Tree Buckets of Consumer Decision Making

Source: (Solomon, 2018)

Decision making which focuses on the process of cognition is a rational decision-making process by involving a process of comparing several products that can be his choice. In the process, consumers will look for the information needed, be it internal (memory, etc.) or external (advertising, website, etc.).  “Cognition is a process of learning through and by the help of which an individual becomes aware of his internal and external reality and gets to know it better. It encompasses a series of psychological processes such as perception, remembrance, learning, imagination, discovering, thinking, making judgments, using language, etc. The cognitive theory refers to the process of learning and developing knowledge and comprehension” (Trandafilović, Pašić, & Perunović, 2013)

The habitual decision-making process does not require an intense consideration process and is more based on the habits carried out. Usually, repeated purchases of products and consumers already have a strong preference for a particular product or brand. A loyal fan of the Indomie brand of instant noodles, for example, routinely buys back the product when the stock at home is out without thinking any more about what product to buy. Once he felt that he needed it and wanted it, he would come to the store and immediately buy the product. That's an example of a habitual decision-making process.

Meanwhile, effective decision-making is more impulsive and emotional. The key features of impulsive or affective customer behavior which differentiate it from cognitive or rational or cautious are the following (Trandafilović, Pašić, & Perunović, 2013):

·       a sudden, spontaneous urge to buy the product;

·       temporary loss of self-control;

·       emotional conflict and tensions;

·       reducing logic and rational evaluations;

·        spending regardless of the consequences.

The consumer decision-making process can be described as follows. The following below is the decision-making process developed by (Solomon, 2018). 

Picture 2. Stages in Consumer Decision-Making

Source: (Solomon, 2018)

1.  Problem Recognition. The consumer decision-making process begins at the stage of problem recognition.  At this stage, consumers realize that there is a gap between the desired condition and the actual condition faced. This is the stage in which consumer recognizes or identifies a problem or need that requires a solution. They are aware of the problem but may not be aware of the solution.

2.    Information Search. In the next stage, the consumer begins to look for information in order to get some alternative products that can meet his needs. In search of information, consumers can go through the main line or the peripheral line (see elaborate likelihood model). They can do this by researching online, asking friends or family, reading reviews or visiting stores.

3.  Evaluation of Alternatives. After getting information, consumers then begin to evaluate each alternative product that exists. At this stage consumers compare one product against another. The consumer would evaluate different alternatives based on prices, benefits, features, quality, and other factors. They consider both internal and external factors while making decision.

4.   Product Choice. The next stage is the decision-making stage. At this stage, the consumer takes one choice from several alternative options.

5.    Outcomes. And then the outcome stage or action plan. At this stage, the consumer makes a purchase of the product and enjoys the product he purchased.

Chapter 2

How is the decision-making process on high involvement purchases?

 

A high involvement purchase exists when a consumer has to buy a product or service that is expensive or that poses the risk of significant emotional consequences if a mistake is made. (Kokemuller, 2018). Because there are large risk factors that consumers may bear if they make the wrong decision, the decision-making process is more careful, involves more rational considerations, and requires a lot of information as a supporting tool for decision-makers. If you refer to the decision-making categories I mentioned above, high involvement purchases are more towards the cognitive decision-making process.

I take an example of a high involvement purchase that I do when I decide to determine what institution I will choose to take a master's program in communication in marketing communications. This decision I took involved a rational decision-making process.  In the first stage, Problem Recognition, I'm trying to recognize what my needs are regarding post-graduate education. At this stage, I carried out the process of identifying my needs. And until finally I accepted that I did feel that I needed an S-2 level education. After I realized and accepted that there was a need and desire for me to take the communication master's program then I tried to find as much information as possible about the communication master's program that exists throughout the campus in Indonesia.

At the information search stage, high involvement purchase requires information both internal and external. In internal sources, I try to recall and understand what I understand and know about the educational institutions of post-graduate program providers based on my memory, my knowledge, and my experiences.  For external sources of information, I try to get information from many sources such as the internet (websites, social media, google, YouTube), and opinions from friends, advertising, etc. I collected so many references and made sure I had enough, complete information for me to then do comparisons from various alternatives.

Some institutions became alternatives that I considered. Among others, are the University of Indonesia, Gadjah Mada University, Pelita Harapan University, Bunda Mulia University, Sahid University, and LSPR Communication and Business Institute.

The next stage is the stage we evaluate all the alternatives we have. From the names of these colleges I had to do a comparison, assessing which one best suited my needs and desires. In this process, there are 3 variables that can influence individuals in evaluating their choices. First, is Evoked set, the brands of a particular product that a customer considers when choosing to buy the product (dictionary.cambridge, 2022), emerging brands can be sourced from an individual's internal memory according to their experience. Usually, when we are looking for products, there appear brands that we associate with the product according to our knowledge and experience so far. If we are loyal to a brand, then it is likely that those brands are the preference.  The second is multi-attribute. This means that individuals will evaluate the attributes inherent in all options and compare them with each other. In the case I experienced, I will measure the important attributes that each choice has such as academic reputation, tuition fees, study programs offered, the form of lectures, the location of the campus, and others. And lastly, there's affect referral. This means that in deciding on choices, people would go for the product or brand they like best or with which they have strong emotional ties.

Below is a model described as a method in evaluating alternatives submitted by (Solomon, 2018)

Picture 3.Methods of Evaluating Alternatives

 

Source: (Solomon, 2018)

 

In the next stage, the consumer chooses his choice and takes action (purchase) to meet his needs or desires.

Chapter 3

Conclusion

The nature of decision making for high involvement  purchase decisions is more complicated, and the process may take longer than low involvement purchases. High involvement purchase decisions often involve high-risk, high-cost, and infrequently purchased products. Therefore, consumer are more cautious and decisions area more carefully analyzed and evaluated. In High involvement purchase decision-making, decision-making is more rational and involves a process of cognition.  The time used in choosing an alternative will be directly proportional to the high number of factors such as high motivation, high engagement, consideration of large costs and benefits, and the ability to conduct research. 

References

Carl, M., Lamp, C., & Hair, J. (2010). Introduction to Marketing (10th ed). China:Cengage Learning Company.

dictionary.cambridge. (2022, September 30). dictionary.cambridge. Retrieved from https://dictionary.cambridge: https://dictionary.cambridge.org/us/dictionary/english/evoked-set

Hawkins, D., Mothersbauch, D., & Best, R. (2007). Consumer Behavior: Building Marketing Strategy 10th Ed. MGraw-Hill/Irwin.

Kokemuller, N. (2018, November 21). PocketSense. Retrieved from Pocketsense.com: https://pocketsense.com

Merriam-Webster. (2021, November 12). Merriam-Webster.com Dictionary. Retrieved from www.merriam-webster.com: https://www.merriam-webster.com/dictionary/gadge

Oxford Dictionary. (n.d.).

Solomon, R. M. (2018). Consumer Behavior. Buying, Having, Being. Pearson Education Limited 2018.

Trandafilović, I., Pašić, V., & Perunović, S. (2013). THE RESEARCH OF COGNITIVE AND AFFECTIVE BEHAVIOUR DURING SHOPPING. FACTA UNIVERSITATIS.: Economics and Organization Vol. 10, 147-164.

 

 

 

 

Brand Central Idea or Brand Essence

 

Chapter 1

Introduction

In this weekly discussion we will discuss about the brand central idea or brand essence. and will answer the question, Can the brand central idea change?

Key words : Brand central idea, brand essence

 Chapter 2

Brand Central Idea or Brand Essence

A brand is an identity. It represents who you are and separates you from others (Makki, 2018). A strong brand is able to make a product outstanding among others and make it easier for the market to recognize it as young and strongly embedded in the minds of consumers. A strong brand is a brand that excels in its positioning. Have unique or unduplicatable prepositions in the consumer’s mind.

In general, something as strong as a house building must be based on a strong foundation. This analogy in my opinion also applies to a strong brand. A strong brand must be based on a strong foundation or foundation. That's the foundation of a brand.

Brand central idea is the core of a brand. The philosophy that is the foundation of a brand. It is an articulation or elaboration of what is the soul of a brand. It is also known as brand essence or brand core essence. It is the emotional or conceptual representation of a brand that captures the brand's unique value proposition and differentiating attributes. It is the distilled essence of what the brand stands for, as well as its key attributes, benefits, and values that resonate with its target audience.

The brand central idea serves as a guiding principle that informs every aspect of the brand's messaging, identity, and marketing communications, and helps create a strong and consistent brand identity across all touchpoints. 

Source: (Makki, 2018)

“The Central Idea is something that can only be felt without being spoken. It is not a slogan, but it is memorable. Brand audiences will forget about a marketing campaign, but they will always remember how they relate(d) to and feel (or felt) about a place, its businesses, and its community (bloom-consulting.com, 2022).” The Central Idea is the uplifting feeling that places want to arouse in audiences' hearts and minds when they encounter, hear, speak, and think about that place and its inhabitants and which cannot be aped elsewhere. The Central Idea is the emotional connection that exists between venues and the people who visit them, fostering a long-lasting, mutually beneficial relationship.

Chapter 3

Brand Central Idea: The Examples

Some examples of other brand central ideas or brand essence are:

1. Nike - "Just Do It": This central idea emphasizes Nike's mission to inspire and motivate athletes and consumers to achieve their goals and dreams through dedication, hard work, and perseverance.

source : Google.com

2. Adidas - "Through Sport, We Have the Power to Change Lives": The brand central idea for Adidas is to inspire people through sport, providing products and experiences that enable athletes and consumers to unleash their full potential and make positive changes in their lives.

source: Google.com

3. Coca-Cola - "Happiness": This central idea emphasizes the joy and positivity that Coke brings to people's lives, and its mission to spread that happiness and create meaningful connections with people around the world.

source: Google.com

4. Pepsi - "Live for Now." This brand idea is all about capturing the energy and excitement of the present moment and inspiring people to seize the day and make the most of their lives. This idea is supported by Pepsi's branding and advertising campaigns, which often feature vibrant colors, upbeat music, and images of young people enjoying life to the fullest. Additionally, Pepsi's various product offerings, from soft drinks to energy drinks, are all designed to help customers stay refreshed and energized so that they can keep living for now.

source: Google.com

5. Volvo - "Safety": This central idea emphasizes Volvo's commitment to creating cars that prioritize safety above all else, and its mission to protect and care for its customers and their families.

Source: Google.com

6. iPhone - "Innovation": The brand central idea for Apple's iPhone is innovation, emphasizing the company's constant evolution and improvement of its products.

                                                                 source: Google.com

7. Samsung - "Inspire the World, Create the Future": The brand central idea for Samsung is to inspire the world and create the future through its innovations in technology and commitment to making a positive impact on people's lives.

                                                                 source: Google.com

8. Airbnb - "Belong Anywhere": This central idea emphasizes Airbnb's mission to create a sense of belonging for anyone, anywhere in the world, and to help people create memorable and authentic travel experiences that connect them with local cultures and communities.

source: Google.com

9. FedEx - "The World on Time": This central idea emphasizes the reliability, speed, and efficiency of FedEx's delivery services, and its mission to connect people and businesses around the world by delivering packages and documents on time, every time.

source: Google.com 

References

bloom-consulting.com. (2022). Retrieved from https://www.bloom-consulting.com: https://www.bloom-consulting.com/journal/the-central-idea-key-to-every-successful-place-brand-strategy/

de Chernatony, L., & Dall'Olmo Riley, F. (1998). Defining a "brand:beyond the literature with experts' interpretations. Journal of Marketing Management 14(5), 417-443.

Keller, K. L., Parameswaran, A. M., & Jacob, I. (2015). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Fourth Edition. Pearson.

Makki, S. (2018). Branding Matters. The World of Brand and Branding (p. 28). Jakarta: London School of Public Relation.

Maurya, U. K., & Mishra, P. (2012). What is a brand? A Perspective on Brand Meaning. European Journal of Business and Management .Vol 4, No.3, 123.

Ness, J. V. (n.d.). Principle of Good Logo Design. Graphic Precision.

 

 

Is a brand a logo?

Chapter 1

Introduction

In this weekly discussion, we will answer the question, is a brand a logo?

Keywords: Logo, Brand

Chapter 2

The Brand Definition

In (Keller, Parameswaran, & Jacob, 2015), according to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” In other words, brands serve as a strategy to stand out from rivals (or future competitors) or to differentiate from competitors. A brand is your identity. It represents who you are and separates you from others (Makki, 2018)

Of course, this definition of a brand is not single. There are many definitions of the brands from some experts. These many definitions are coming from a different perspective. In (Maurya & Mishra, 2012), to do the systematic of these definitions, (de Chernatony & Dall'Olmo Riley, 1998) classified definitions of the brand into 12 themes, namely; brand as a logo, brand as a legal instrument, brand as a company, brand as a shorthand, brand as a risk reducer, brand as an Identity system, brand as an image in consumer's mind, brand as a value system, brand as a personality, brand as relationship, brand as adding value and brand as an evolving entity. 

Table 1. Thematic classification along with representative authors

Source: (Maurya & Mishra, 2012)

Some of the definitions mentioned above if we use them in two different perspectives, namely the company perspective, and the consumer perspective, then we can group those definitions as follows:

Table 2. Synthesis of Thematic twelve themes of brand definitions

Source: (Maurya & Mishra, 2012)

In addition, a brand can be interpreted from the role taken as follows:

Figure 3. Roles That Brands Play

Source: (Keller, Parameswaran, & Jacob, 2015)

A brand is made up of the emotional and experiential elements that support the perception and ideas that other people have about it. It has a recurrent tone or visual voice that communicates the company's position in the market and its competitive advantages. The brand is what people say about you behind your back (Makki, 2018) and it is also about the reputation in the consumer’s mind.  According to Jeff Bezos, the CEO /founder of Amazon, “Your brand is what other people say about you when you’re not in the room.”

 Chapter 3

Logo

A logo is a symbolic representation of the personality and spirit of a company. In a crowded market, a memorable logo acts as a visual shortcut to the business and is a crucial element of a strong brand. A logo is the visual identity of a brand. A logo is what a brand physically displays in the market and visually what consumers and the industry see. A logo is something that appears on the surface of an ice cube in the ocean while a brand is its essence located within the surface of the sea. This can be visually seen by analogy as shown below:

 Picture 4. Logo and Brand

Source: https://brandfolder.com/blog/logo-vs-brand-know-difference

Below are examples of some of the logos of a brand. As consumers, we recognize a brand from these logos. A strong logo makes a brand stand out from competitors

 Picture 5. Logos of the brands

Source: Google.com

All of the logos mentioned above will not have the slightest meaning without other factors of a brand (including its products) and a branding activity (specifically marketing communications).  Therefore, a stand-alone logo is not yet a brand.

 Below are some types of logos:

 Picture 6. Types of Logos

Source: (Ness)Jake Van Ness

Graphic Designer and Design Consultant

 Chapter 4

Conclusion

Is brand a logo? From the explanation above, we can conclude that the brand is not the same as the logo. The brand is broader than a logo. A logo is part of the brand. A logo is a very important part of the brand. The brand serves as the company's foundation, while the logo serves as a visual representation of the brand's trademark. When marketing and promoting a consistent image and voice, a logo identity system and a strong branding system are both essential, but a brand speaks for itself. A company's success ultimately depends greatly on how customers feel about it and its offerings.

 

References

de Chernatony, L., & Dall'Olmo Riley, F. (1998). Defining a "brand: beyond the literature with experts' interpretations. Journal of Marketing Management 14(5), 417-443.

Keller, K. L., Parameswaran, A. M., & Jacob, I. (2015). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Fourth Edition. Pearson.

Makki, S. (2018). Branding Matters. The World of Brand and Branding (p. 28). Jakarta: London School of Public Relation.

Maurya, U. K., & Mishra, P. (2012). What is a brand? A Perspective on Brand Meaning. European Journal of Business and Management.Vol 4, No.3, 123.

Ness, J. V. (n.d.). Principle of Good Logo Design. Graphic Precision.

 

 

The Important of Online Communication

 Chapter 1

Introduction

In this weekly discussion we will discuss about On-line communication, what the important of online communication are, elaborate what the traditional channels and online channels are, and what the advantages of online Marketing.

Keywords: Online Communication, traditional channels, online channels, the advantages of online marketing

Chapter 2

The Important of online Communication

Online communication is how people communicate, connect, transact to send, retrieve, or receive information of any kind via the internet using digital media (Bhasin, 2021). Online communication refers to all communication that takes place via the internet. With the advancement of digital technology, especially the internet, online communication is increasingly important and has become a very vital part of society that is increasingly digitized in almost every aspect of life. Its existence is as important as traditional communication or we mention it as a form of off line communication

Online communication is a form of communication that becomes an alternative and complement of our traditional communication in a world that is currently connected without the limitations of time and space. Online communication is as important as our traditional communication and even provides a lot of added value to the communication process of modern society. Some features are become their characteristic and confirm how important this communication channel is.  Below are some of the more values of online communication:

1. Reduce communication costs. Online communication channels are significantly changing the way we communicate to be more efficient by eliminating costs that are no longer needed. Before the era of online communication, we spent a lot of costs that we spent quite a lot, including transportation or accommodation costs to meet, spending longer time and other costs.

2. Improve access to information and communication. Online communication makes it easier for each individual to exchange information more easily and more reach out to access the desired source of information without barriers. Nowadays fans of an international artist can communicate directly with their idol artist easily on the social media platform. Nothing is inaccessible.

3. The large selection of tools that can be used according to our needs/wants. On line communication has many communication tools or devices that convey information in various forms of communication (text, voice, image, video etc.). We can use mobile devices (smartphone, laptop), or non- mobile devices such as computer.

4. Induce productivity. Ease of access, efficiency of access help individuals or institutions become more productive and encourage creativities.

5. Encourage energy consumption savings.  The nature of efficient online communication changes the way our social communication is to become cost-effective communication so that it can reduce the use of energy, especially energy, specifically means that it also encourages efforts to improve the quality of the environment.

6. Increase competitive advantage. The ability of individuals and organizations to optimize the advantages and benefits of online communication helps them increase productivity and quality that will increase competitive advantage. For example, online communication makes it easier for us to get a lot of information (big data) which can increase the ability to create better value to customers. 

Online communication has many variative tools which can be used according to our needs and purpose.  (Blog, video conference, mobile phone, social network, email, forum, newsletter, messenger) 

Picture 2.1

Online Communication Tools

Source: https://lerablog.org/

Chapter 3

The traditional Channels

We know several communication channels in our traditional communication, especially in marketing communication. Among others are:

Traditional channels	Description / examples:
Events/Networking/Meetings	Source: Google.com
Direct Mails/Flyer	Source: Google.com
Newspaper Ads/Magazines	Source: Google.com
Sponsorship	Source : Google.com
TV Advertising	Source : Google.com

Traditional Channels	Description/Examples
Roadshow Promotions	Source: Google.com
Telemarketing	Source: Google.com
Door-to-door Selling	Source: Google.com
Direct Selling	Source: Google.com

Chapter 4

The Online Channels

In this chapter we will give examples of some the online channels. Below are some online channels:

Online Channels	Description/ Example
Search Engine Optimization (SEO)   SEO is one of the strategies in digital marketing as the way to improve the quality and quantity of website traffic. It is about improving a site’s rankings in the organic (non-paid) section of the search results. SEO works by creating certain algorithms that direct the results of a search process in search engines to us or encourage the birth of traffic to the website we have. This traffic is then encouraged into a conversion that will increase sales of a product.	Source: Google.com
Search Engine Marketing (SEM)  “It is a form of Internet marketing that involves the promotion of a website by increasing its visibility on search engine results pages (SERPs) mainly through paid advertising. SEM can include search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve higher rankings on search engine results pages to improve pay-per-click (PPC) lists” (ibrand.id, 2022)	Source: Medium.com & ibrand.id
Social Media Marketing   Social Media Marketing is a form of digital marketing communication activities by utilizing social media platforms. (Instagram, Facebook, YouTube etc.)	Source : hindipanda.com & sitesmatrix.com