MKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR Consumption Journal – Individual Written Report I. INTRODUCTION

MKTG1421 – Consumer Psychology and BehaviorMKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR Title of Assignment Assignment 2: Consumption Journal Name and Student ID Tran Nguyen Khoi – s374538

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MKTG1421 – Consumer Psychology and Behavior

MKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR

Title of Assignment Assignment 2: Consumption Journal

Name and Student ID Tran Nguyen Khoi – s3745383

Word Count

(Main content without

list of references, cover

page, etc.)

1172

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MKTG1421 – Consumer Psychology and Behavior

Consumption Journal – Individual Written Report

Consumer behaviors refer to the nature of desiring, favoring and the final decision – purchasing items of individuals that fulfil their demand (Peighambari et al 2016) The role of consumers towards businesses financial competency is undeniable, therefore, understanding this key stakeholder is crucial for enterprises to remain competitive Since every human being is a consumer, this report is conducted by self – assessing own perceptions to examine factors stimulating me to the final purchase of both medium and high - involvement products based on the EKB framework (Appendix 1) With gained insights, recommendations for marketers are suggested to thrive in the domestic market

II Medium – involvement Product Purchase Analysis

Date: 28 December 2019th

Purchased Product: Apple AirPods 2

Vendor: Dien May Xanh (DMX) Cong Quynh

Brand: Apple

Purchased Price: 3.499.000 VND

Purchasing reasons: I desired to purchase earphones to maintain my well – being by listening to music and purchasing an item can temporarily alleviate stress

1 Stage 1 – Problem Recognition

My problem recognition evoked when I confronted burnout (actual state) and I sought for solutions to reinforce well – being (ideal state) The disparity between above mentioned states was shaped, which initially facilitates consumers to the final purchase decision (Bruner & Pomazal 1988), and

I perceived that obtaining an earphone could mitigate distress Since my product was a nonnecessity, I considered about acquiring an earphone, or middle – involvement purchase with limited decision making for my generic problem recognition

2 Stage 2 – Information Search

Both internal and external information’s sources were adopted to select the appropriate earphones From my consciousness, there were numerous brands that fitted with my requirements, whereas to find the optimal options, I also investigated information on Internet to reinforce my knowledge With the proliferation of technology, external searching was a powerful tool for consumers to easily assess products’ features (Frost 2015) After gathering sufficient data, I categorized earphones depending on the brand in initial sets (Appendix 2) and continued to evaluate products classified on the evoked set

3 Stage 3 – Evaluation & Selection

I listed most suitable features with my requirements whilst purchasing earphones and estimated the essence of those (Appendix 3) By adopting the compensatory decision rule, Apple Airpods 2 scored the highest, so I decided to come to the store and acquire this product

Consumption Journal – Individual Written Report

MKTG1421 – Consumer Psychology and Behavior

4 Stage 4 – Store Choice and Purchase

DMX Cong Quynh was my chosen outlet to procure Airpods 2 for its accessibility Since I conducted searches information before selecting an outlet, my priority was brand first, outlet second With the white scheme for interior design, DMX’s selling products would be observable for consumers’ eyesight, augmenting purchasing intention (Sliburyte & Skeryte 2014; Wagger 2019) I was also influenced by this rationale and proficient staff who explained carefully the Airpods 2’s functions, warranty and returning policy, hence, I made my purchasing decision

5 Stage 5 – Post – purchase processes

Airpods 2 fulfilled instrumental (proper function), affective (emotional support) and symbolic performance (fashionable appearance) Combined with customer service from DMX, a positive disconfirmation of expectations was created and I satisfied with the purchased product Consequently, I shaped a positive perception for both DMX and Apple, which achieved my brand loyalty to purchase additional products in the future

6 Implications for marketers

Consumer satisfaction is not achieved if retailers are failed to fulfill their demand (Giese & Cote 2000; Phuc 2011) With excessive cold white lights installed, I felt overwhelmed arriving at DMX, and

my suggestion for this is to accommodate warmer white bulbs for the interior design Indeed, it still maintains the abovementioned benefits but simultaneous create perceived warmth for consumers and further evokes trust (Choi et al 2016; Tantanatewin & Inkarojrit 2016) However, renovating the store requires temporary closure, which possibly loses consumers to direct competitors, causing unbalanced financial sheets (Haans & Gijsbrechts 2010) and this tradeoff should be thoroughly considered

III High – involvement Product Purchase Analysis

Date: 30 October 2019th

Purchased Product: Dell Latitude E7470 i5

Vendor: Laptop88 Nguyen Thien Thuat

Brand: Dell

Purchased Price: 11.800.000 VND

Purchasing reasons: I tended to finish deadlines with my PC or library’s computers because I did not have a laptop, which was inconvenient in several circumstances

1 Stage 1 – Problem Recognition

My desire to acquire my own laptop awaken when I could not attend to a meeting at the coffee shop hosted by my peers to discuss upcoming assignments and the discrepancy of actual circumstance (not having a laptop) and ideal state (having one) was apparent, urging me to resolve the problem As a student, a laptop was an uneconomical product category and efforts had been spent for scrutinizing the tradeoffs Hence, this could be categorized as high – involvement purchase with the extended decision making process

2 Stage 2 – Information Search

According to Quester, Pettigrew & Kopanidis (2013), high – involvement purchase frequently aligns with more external searches due to perceived risks of being dissatisfied after usage For instance, compared to when I procured Airpods 2, I adopted more external sources, mainly from relatives’ reviews, online search engines and sales personnel at the store to gain more information There were numerous products in the domestic market, therefore, based on personal preferences, evoked set was formed to further be evaluated (Appendix 4)

3 Stage 3 – Evaluation & Selection

I frustrated with overload information and gained for evoked set within a short period, which possibly provoked a faulty decision and further post – purchase dissonance (Cory 2011) To process and

Consumption Journal – Individual Written Report

MKTG1421 – Consumer Psychology and Behavior

filter appropriate information, I actively consulted with Laptop88’s personnel to and by applying conjunctive decision rules, Dell Latitude E7470 was optimal among others (Appendix 5)

4 Stage 4 – Store Choice and Purchase

Location of retailers is essential to attract consumers (Thang & Tan 2003) I chose Laptop88 Nguyen Thien Thuat for its accessibility to my neighborhood and it was the main office Similarly, I also prioritize brand first and outlet second As abovementioned, social surrounding factors, especially employees performed a professional manner as they discussed and assisted me in choosing the product corresponding with my demand

5 Stage 5 – Post – purchase processes

Laptop88 offered one – month warranty and returning policy if flaws were detected At first, I felt satisfied as purchasing purpose focused on doing assignments only However, post – purchase dissonance still aroused due to requirements of designing for assignments afterwards, which was not initially planned whilst purchase Overall, with cognitive dissonance, negative disconfirmation and regret were initiated

6 Implications for marketers

There are reputable players in the same product category (e.g Phong Vu), so my suggestion for Laptop88 is to concentrate on promoting affordable laptops with the target markets are students and middle – income segmentation According to Statista (2021), Vietnamese working ages accounts for 74%, whereas middle – income popluation will augment to 93 million in 2030 as reported by Nielsen (cited in BMI n.d.) By promoting as a friendly price enterprise, Laptop88 has opportunities to attract enlarging potential consumers and achieving financial advantages Alternatively, they can sell high –end products per order fulfillment, however, this will lead to a loss in net revenue Again, the tradeoff should

be scrutinized carefully

IV Conclusion

The complicated nature of consumer behavior requires constant research and studies to appreciate this key stakeholder As a consumer, I have adopted self – assessment methodology for both medium and high – involvement purchase decision to cultivate knowledge in this field and provide recommendations for those enterprises With the rapid development of the contemporary era, marketers should be proactive

to understand consumers and implement appropriate marketing strategies to thrive in the competitive domestic market of Vietnam

Consumption Journal – Individual Written Report

MKTG1421 – Consumer Psychology and Behavior

V References

Berthon, P, Pitt, L & Watson, R 1996, ‘THE WORLD WIDE WEB AS AN ADVERTISING MEDIUM’, Journal of Advertising Research vol 2, pp 43-54

BMI Market Report n.d., Market Report: Vietnam, BMI, viewed 30 April 2021,

<https://bmiglobaled.com/Market-Reports/Vietnam/economic-strength?

fbclid=IwAR1zOzBO G3WcQ11UFdy93FjBdizy50WW7XqmvwE9RP1YxLH7-UE9CFlFo#:~:text=Vietnam's%20middle%20class%20population

Bruner, GC & Pomazal, RJ 1988, ‘Problem Recognition: The Crucial First Stage of the Consumer

Decision Process’, Journal of Consumer Marketing Southern Illinois University Carbondale vol 5, no

1, pp 53-63

Cory, TC 2015, ‘Consumer E-Commerce Dissonance: Innovating without Alienating Before Information

Overload’, in Deeter-Schmelz D (ed.), Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference Developments in Marketing Science: Proceedings of the Academy of Marketing Science, Springer, viewed 29 April 2021, < https://link.springer.com/chapter/10.1007/978-3-319-11797-3_149#citeas >

Frost, FL 2015, ‘Towards an Understanding of Internal and External Search for Purchase Decisions

involving the World Wide Web’, in: Manrai A & Meadow H (eds), Global Perspectives in Marketing for the 21st Century Proceedings of the Academy of Marketing Science, Springer, viewed 28 April 2021, <

https://link.springer.com/chapter/10.1007/978-3-319-17356-6_78>

Giese, L & Cote, JA 2000, ‘Defining Consumer Satisfaction’, Academy of Marketing Science Review, vol

4, pp 1-24

Phuc, HL 2011, ‘Customer Satisfaction towards Retailers ICA, ICA NÄRA and COOP FORUM’, Master Thesis, Gotland University, Sweden, viewed 30 April 2021, <

https://www.diva-

Quester, PG, Pettigrew, S & Kopanidis, F 2013, Consumer Behaviour: Implications for Marketing

Strategy, McGraw-Hill Australia, ProQuest Ebook Central database.

Statista 2021, Working age population in Vietnam from 2010 to 2020 (in millions), Statista, viewed 30

April 2021, <https://www.statista.com/statistics/711237/vietnam-working-age-population/?

Tantanatewin, W & Inkarojrit, V 2016, ‘Effects of color and lighting on retail impression and identity’,

Journal of Environmental Psychology, vol 46, ResearchGate Database.

Thang, DCL & Tan, BLB 200,3 ‘Linking consumer perception to preference of retail stories: an empirical assessment of the multi-attributes of store image, Journal of Retailing and Consumer Services, vol 10,

no 4, pp 193-200

Consumption Journal – Individual Written Report

MKTG1421 – Consumer Psychology and Behavior

VI Appendix

Appendix 1: the framework of EBK.

Appendix 2: brand in initial sets of Airpods 2

Appendix 3: evaluation of Airpods 2

Consumption Journal – Individual Written Report

MKTG1421 – Consumer Psychology and Behavior

Appendix 4: Brand in initial sets of Dell Latitude E7470