Consumer Behaviour: Influences on Decision Making Report

This report delves into the realm of consumer behaviour, meticulously examining the intricate factors that shape customer decision-making processes. It initiates with an introduction that underscores the significance of understanding consumer behaviour for organizational success, followed by an analysis of the three levels of involvement: routine responsive behaviour, limited decision-making, and extensive decision-making. The report then explores the internal factors influencing consumer consumption styles, including perception, motives, personality, and emotions, alongside the external factors such as social class, lifestyle, demographics, reference groups, and culture. It further examines the impact of various marketing strategies on customer decision-making, providing insights into effective approaches. The report also details personal consumption experiences and concludes by synthesizing the various internal and external factors affecting purchasing decisions and the role of marketing strategies in influencing those decisions.

CONSUMER BEHAVIOUR

Contents
Introduction................................................................................................................................3
Three involvement levels...........................................................................................................3
Internal factors affecting the consumption style of the customers.............................................4
External factors affecting the consumption style of customers.................................................6
Marketing strategies affecting decision making of the customer...............................................8
consuption experiences............................................................................................................10
Conclusion................................................................................................................................11

Introduction
The report brings out a discussion on customer decision making and its related factors that
affect the decision-making. Consumer behaviour is useful for the customers whether small or
large. In today`s era, the organisation operate without examining the consumer behaviour, it
will lead to poor goals and ineffectiveness to achieve success to get maximum customers.
This report highlights external and internal influences that affect the purchasing pattern that
helps to form marketing strategies. It has a record of 15 days that has to be taken into
consideration.
Three involvement levels
On the basis of example from the consumption diary that is attached in appendix, the three
levels are described below-
Routine responsive behaviour-
This behaviour is considered when a person go to grocery store and try to grab bread and
other material to which a person is familiar with and also that carries lightest price tag
(Gidlöf, Anikin, Lingonblad, & Wallin, 2017).
Limited decision-making –
This decision making occurs in new clothes market or any new collapsing chair which may
bring camping that need a little research for brands unless it is worn by other models and
celebrity. Most importantly, a consumer will buy the product in his budget, which looks to be
more practical. Less thinking and more eating is the concept of decision making.
Extensive decision making-

This level of decision-making happens when someone is settling home for the first time with
the spouse especially when he has never bought any house before. It is understood that a huge
investment and these types of decision making come under economic risks. Extensive
decision-making needs maximum research. People generally do not undertake huge level of
involvement, long time to decide, and high cost of goods so the customers take less time to
decide.
Routine responsive behaviour-
28/0
3
Laundry detergent Motives
Lifestyle
Personality
Household
Promotion in the shop
30/0
3
Cat food
(Whiskas) (ionzed)
Learning and memory
Motives
Attitudes
Household
On sale good price brand
22/0
3
Car park fee Motives
Personality
References groups
Households
Early bird discount
2/04 Hotpot Lifestyle Delicious and reliable restaurant

Ionzed Reference groups
Household
Learning and memory
11/0
4
Hotel booking fees Learning and memory
Lifestyle
Culture
Household
Easter holiday sales online discount
In the above table, the involvement of thinking is less, as they are necessities for the
household. In such situation, products essentially purchase without giving a great significant
to thoughts. Although, it depends on the priority set by the consumer.
Limited decision-making
Date Product
29/03 Movie (the wandering earth)
31/03 Electric toothbrush [Philips]
5/04 Top up AT hopcard
7/04 Red wine
13/04 Hair dyed
25/03 Uber eats

The above table indicates that these items has limited decision making before buying. Their
purchases are based on learning and memory.
Extensive decision-making
Date Product
03/04 Fill up car
11/04 Hotel booking fees
12/04 Instant camera
As a person expends huge amount so it takes time to take decision. It considers leisurely time,
good accommodation, food style, and camera quality are some of the crucial things that can
make a trip a happy one.
Internal factors affecting the consumption style of the customers
Certain internal factors derived from consumer`s lifestyle, way of thinking, and their
perception. This factor includes motivation, lifestyle, feelings, attitudes, and memory. These
factors are also known as psychological factors. Internal factors determine the way, which
consumers interact, and find, collect, identify, develop new ideas, examine information, and
apply specific actions (Kalimullin, & Dobrotvorskaya, 2016).
Perception- it considers purchasing power of the customers that affect the decision making
of the customers. It is generally seen that customers generally analyse the purchasing capacity
of the customers to make buying decisions in regards to products or services. The food can be
excellent but it fails according to the perception of the customers that they have demanded
which will have greater negative effect on sales. Segmented consumers on the basis of their
buying capacity that will help in deciding eligible customers to attain greater outcomes
(Kalimullin, & Dobrotvorskaya, 2016).

Motives- the need of the customers can be elaborated as lack of fulfilment or the difference
between desired state and the actual state. Motive is and inner state that further motivates a
person to satisfy the needs. For example- a person may be hungry where his actual state has a
desire to be settled by the desired state.
Personality- At personal level, there are various factors that affect the consumption
behaviour of consumers such as their likes, dislikes, values, morals, and priorities.
Emotion- emotions are defined as uncontrollable feelings that have effect on customer`s
behaviour. Emotions are associated with motivation and personality traits that creates
emotional attachment to individual. There is a great need to cater negative emotions,
frustration, anger, and irritation as the customer needs are attained in such a manner to
change it to excitement, happiness, and contentment.
Product Internal Factor
Cat food Learning and Memory
1/04 Beef steak
[Pack n save]
Perception
Motives
Hotpot
Ionzed
Household
Learning and memory
Top up AT hopcard Motives
Learning and memory
The above table shows that the purchasing procedures of products are influenced by the
internal factors. The purchase of cat food, beef steak, hotpot, and top up AT hopcard are
influenced by learning and memory, perception of a person, and motives.

External factors affecting the consumption style of customers
While purchasing a product or services, as person has to confront many external factors that
involve own culture, household’s structure, social group, and subcultures.
Social class- This association is known as external influences that usually range from exterior
to individual from the internal influences. External factors are more related to socio-cultural
factors, as the impact of these factors grow in the individual`s formal or informal relationship
with the family and friends.
Lifestyle- lifestyle depends on the working style of people living in the house. For example-
we have our offices on the weekdays and during weekends, people often prefer outing but
sometimes it is not preferable. Figuring out in a week from the working lifestyle can lead to
relaxation that further affects the decision-making effects (McColl-Kennedy, Gustafsson,
Jaakkola, Klaus, Radnor, Perks, & Friman, 2015).
Demographics- this factor is affect by various traits of customer such as gender, race, age,
household income, and disabilities. External factors considers the above factors that affect
buying behaviour of the customers.
References groups- reference and friend groups often affect the decisions of the customers.
For example- professionals working at offices are affected by maximum preference of group
such as whole group wants to chill out then they usually order some snacks with coffee. The
main set of people that affect the purchasing decision are classmates, relatives, and family
members and another set of people affecting the people`s decisions are acquaintances and
neighbours (Bai, Yao, & Dou, 2015).
Culture- both country`s as well as person`s attitudes, beliefs, and other opinions are shaped
to form a culture. Culture affecting in forming a decision related to purchase of products and
services. This signifies and gratifies different emotional needs and due to which a product

tries to protect the cultural ethics and beliefs. For example- it is important to protect the
culture beliefs as per the behaviour reflected by the customers (Zinovieva, Kuznetsova,
Dorfman, Limarev, & Limareva, 2016).
Electric toothbrush [Philips]
(399NZD)
Reference group
Demographics
Lifestyle
Perception
Beef steak
[Pack n save]
Learning and memory
Household
Motives
Reference group
Lifestyle
Perception
Hotpot
Ionzed
Lifestyle
Reference groups
Household
Learning and memory
Fill up car Reference groups
The household
Values

Motives
Car park fee Motives
Personality
References groups
Households
Top up AT hopcard Motives
Reference group
Learning and memory
Zoo ticket (35zd) Household
Reference group
Culture
Perception
Red wine Social class Lifestyle
Culture
Uber eats Reference group
Lifestyle
Foundation Lifestyle
Personality
Hotel booking fees Lifestyle

Culture
Instant camera
Birthday gift
Lifestyle
Reference group
Social class
Hair dyed Lifestyle
Culture
References groups
The above tables reveals that few external factors that affect the purchasing behaviour of the
customers. the purchase of birthday gift, instant camera, hotel booking, hair dyed, red wine,
zoo tickets, foundation, car fill up are influenced by external factors such as lifestyle, social
culture, reference groups, personality and values.
Marketing strategies affecting decision making of the customer
In order to influence greater number of the customers, the marketers holds huge
responsibilities while forming marketing strategies. The three important strategies that crease
the customer value are-
Marketing strategy-1
Some of the best marketing strategies, which the company adopt, are Facebook advertising,
Organic Social Media, coupon Deal Sites, Email Marketing, Google Adwords and content
marketing. It is important to improve the personal experiences of the customers. The
company classify its customers on the basis of demographic as well as psychological factors,
so that the target market can be segmented on the basis of attitude towards ordering the food

from the application. It is on the basis of segments like gender, income level, educational
level, and age. In psychographic segmentation, target market is being segmented on the basis
of maximum young people especially professionals who do not leave at their homes and stay
outside in order to grab the maximum future opportunities (Turner, & Endres, 2017).
Marketing strategy-2
Advertising- After a segment is decided, a business should involves advertisements to
influence and aware people regarding the product. For example- A segment considers family,
friends and food lovers who often attempts to taste different products if they are under high
influencing advertisement then they can be purchased. Age of the group varies form 16-65
that includes the different level of education and income level in order to serve greater
number of people.
Marketing strategy-3
Referral codes- and recognise the maximum users so that this concept is more related to
loyalty programs where, a person can spent a lot of money for the product he desires. It is
important to improve the customer experience because reviews of the application and reviews
for each product is very much important as it attract more customers (He, Tian, Chen, &
Chong, 2016).
Consumption experiences
One of the most high value consumption experiences includes birthday gift and holiday
booking from my consumption dairy. These two products were most important from all the
purchases.
It involves a procedure that starts from –

Problem recognition- My experience while buying all the products was good. Undoubtedly,
there are certain external an internal influences that affect the buying behaviour. Once when I
order a hot coffee, it took a bit more time in traffic and I received it late. The problem was I
was bit confused while booking the hotel accommodation.
Information search- It is the ability of the markets to understand the perception of the
customers and react accordingly. I am pure vegetarian so I seek for products that are
vegetarian (Pradhan, Duraipandian, & Sethi, 2016). According to me, it is an ultimate and
quick solution to hunger as search nearby restaurants so that the food can reach early
(Altunel, & Erkurt, 2015).
Evaluation and selection- When I observed that it is not of any use as it is chill, I complained
for the same. I received by money back just by sending the picture of cold coffee that was hot
earlier. I have become loyal and even my disposable income takes less to buy the food that
turn to full satisfaction (McDONALD, 2016).
The buying process indicates that internal and external factors affect the marketing strategies
that influence my decision-making. It can be said that it requires a moderate level of thinking
for food freaks and less involvement level can exist for meal takers. Beliefs, values, culture,
social values, personality, emotions, motive, perception, lifestyle, and references groups
affect the decision making of the customers while conducting purchase for goods. I would
have selected more good destination for our holiday booking.
Conclusion
The report has concluded many different internal and external factors that affect the buying
decisions of the customers. Marketers has the key responsibilities to affect the decision-
making and their buying behaviour. In this report three marketing strategies has been
described to achieve high value of consumption activities. At last, a customer have shared his

experience with the product that was under the influence of internal and external factors and
measure its marketing activities on the other hand.

References
ResearchGate, (2019). Internal and external factors. Retrieved from:
https://www.researchgate.net/figure/Internal-and-external-factors-affecting-consumer-
buying-behavior-Source-Consumer-buying_fig1_301753990
Tunguz, T., (2018). Three dimension of content marketing. Retrieved from:
https://tomtunguz.com/3-dimensions-of-content-marketing/
fourwekkmba, (2018). How Does Uber Eats Make Money? Uber Eats Business Model In A
Nutshell. Retrieved from: https://fourweekmba.com/uber-eats-business-model/
Gidlöf, K., Anikin, A., Lingonblad, M., & Wallin, A. (2017). Looking is buying. How visual
attention and choice are affected by consumer preferences and properties of the supermarket
shelf. Appetite, 116, 29-38.
Younus, S., Rasheed, F., & Zia, A. (2015). Identifying the Factors Affecting Customer
Purchase Intention. Global Journal of Management And Business Research.
Zinovieva, C. G., Kuznetsova, M. V., Dorfman, T. V., Limarev, P. V., & Limareva, J. A.
(2016). Study of external and internal factors affecting enterprise’s stability. Advances in
Systems Science and Applications, 16(1), 62-71.
Bai, Y., Yao, Z., & Dou, Y. F. (2015). Effect of social commerce factors on user purchase
behavior: An empirical investigation from renren. com. International Journal of Information
Management, 35(5), 538-550.
Pradhan, D., Duraipandian, I., & Sethi, D. (2016). Celebrity endorsement: How celebrity–
brand–user personality congruence affects brand attitude and purchase intention. Journal of
Marketing Communications, 22(5), 456-473.

Altunel, M. C., & Erkurt, B. (2015). Cultural tourism in Istanbul: The mediation effect of
tourist experience and satisfaction on the relationship between involvement and
recommendation intention. Journal of Destination Marketing & Management, 4(4), 213-221.
Hong, I. B. (2015). Understanding the consumer's online merchant selection process: The
roles of product involvement, perceived risk, and trust expectation. International Journal of
Information Management, 35(3), 322-336.
Awan, H. M., Siddiquei, A. N., & Haider, Z. (2015). Factors affecting Halal purchase
intention–evidence from Pakistan’s Halal food sector. Management Research Review, 38(6),
640-660.
Turner, S., & Endres, A. (2017). Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), 3.
McDONALD, M. A. L. C. O. L. M. (2016). Strategic marketing planning: theory and
practice. In The marketing book (pp. 108-142). Routledge.
Kalimullin, A. M., & Dobrotvorskaya, S. G. (2016). Higher Education Marketing Strategies
Based on Factors Impacting the Enrollees' Choice of a University and an Academic
Program. International journal of environmental and science education, 11(13), 6025-6040.
He, W., Tian, X., Chen, Y., & Chong, D. (2016). Actionable social media competitive
analytics for understanding customer experiences. Journal of Computer Information
Systems, 56(2), 145-155.
Sukhu, A., Seo, S., Scharff, R., & Kidwell, B. (2018). Emotional intelligence in transcendent
customer experiences. Journal of Consumer Marketing, 35(7), 709-720.

McColl-Kennedy, J. R., Gustafsson, A., Jaakkola, E., Klaus, P., Radnor, Z. J., Perks, H., &
Friman, M. (2015). Fresh perspectives on customer experience. Journal of Services
Marketing, 29(6/7), 430-435.

Appendix
DAT
E
ACTIVITY Key
Influences
Comments
Note what you
purchased (including
the brand), watched,
heard, read, consumed
Internal and
external
Relevant comments on
marketing activities that
may have impacted on
your purchase behavior
28/03 Laundry detergent Motives
Lifestyle
Personality
Household
Promotion in the shop
29/03 Movie (the wandering earth) Motives
Emotion
Culture
Household
Website advertising
30/03 Cat food
(Whiskas) (ionzed)
Learning and
memory
Motives
Attitudes
Household
On sale good price brand

31/03 Electric toothbrush [Philips]
(399NZD)
Reference
group
Demographics
Lifestyle
Perception
Good quality and brand
1/04 Beef steak
[Pack n save]
Learning and
memory
Household
Motives
Reference
group
Lifestyle
Perception
20 % off discount and good quality
2/04 Hotpot
Ionzed
Lifestyle
Reference
groups
Household
Learning and
memory
Delicious and reliable restaurant
03/04 Fill up car Reference
groups
AA member discount

The household
Values
Motives
22/03 Car park fee Motives
Personality
References
groups
Households
Early bird discount
5/04 Top up AT hopcard Motives
Reference
group
Learning and
memory
Student discount
6/04 Zoo ticket (35zd) Household
Reference
group
Culture
Perception
Student discount
7/04 Red wine Social classon sale

Lifestyle
Culture
Learning and
memory
25/03 Uber eats Reference
group
Motives
Learning and
memory
Lifestyle
First order 10$ discount
9/04 Contact lens Motives
Lifestyle
Learning and
memory
Website
Free shipping
Discount
Loyalty cards
10/04 Foundation Learning and
memory
Lifestyle
Motives
Personality
Buy one get one free gift
11/04 Hotel booking fees Learning andEaster holiday sales online discount

memory
Lifestyle
Culture
Household
12/04 Instant camera
Birthday gift
Lifestyle
Learning and
memory
Reference
group
Social class
Buy a camera
Get a photograph paper free taster.
13/04 Hair dyed Lifestyle
Culture
References
groups
Discounts