S3745383 MKTG1421 Consumption Journal 2 PDF

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MKTG1421 – Consumer Psychology and Behavior

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MKTG1421 – Consumer Psychology and Behavior MKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR

Semester

2021 – 1

Title of Assignment

Assignment 2: Consumption Journal

Name and Student ID

Tran Nguyen Khoi – s3745383

Signature

Tran Nguyen Khoi

Location

Saigon South / Hanoi

Class Group

G03 SGS

Lecturer

Dr. Nguyen Yen Khanh

Word Count (Main content without

1172

list of references, cover page, etc.)

IMPORTANT NOTICE: All students listed on this page declare that they have read and agree to the statement of authorship on the next page.

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MKTG1421 – Consumer Psychology and Behavior

Declaration and Statement of Authorship 1. I/we hold a soft copy of this assignment which can be produced if the original is lost/damaged. 2. This assignment is my/our original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made. 3. No part of this assignment has been written for me/us by any other person except where such collaboration has been authorised by the academic/teacher concerned and as detailed in the assignment. 4. I/we have not previously submitted this work for any other course/unit. 5. I give permission for my assignment to be scanned for electronic checking of plagiarism. 6. I give permission for a copy of my/our marked work to be retained by the Department for review by external examiners. I/we understand that: Plagiarism is the presentation of the work, idea or creation of another person as though it is one’s own. It is a form of cheating and is a very serious academic offence which may lead to expulsion from the University. Plagiarised material can be drawn from, and presented in, written, graphic and visual form, including electronic data, and oral presentations. Plagiarism occurs when the origin of the material used is not appropriately cited. Enabling Plagiarism is the act of assisting or allowing another person to plagiarise or to copy one’s work; this is not acceptable and is also subject to penalty. Further information relating to the penalties for plagiarism, which range from a notation on your student file to expulsion from the University, is contained in RMIT Statute 6.1 Student Discipline (see Appendix in Student Guide or consult Turing).

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MKTG1421 – Consumer Psychology and Behavior

Consumption Journal – Individual Written Report I.

INTRODUCTION

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.

Consumption Journal – Individual Written Report Tran Nguyen Khoi – s3745383

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MKTG1421 – Consumer Psychology and Behavior

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Medium – involvement Product Purchase Analysis

Date: 28th December 2019 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 Tran Nguyen Khoi – s3745383

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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.

Consumption Journal – Individual Written Report Tran Nguyen Khoi – s3745383

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MKTG1421 – Consumer Psychology and Behavior

III.

High – involvement Product Purchase Analysis

Date: 30th October 2019 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 Tran Nguyen Khoi – s3745383

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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.

Consumption Journal – Individual Written Report Tran Nguyen Khoi – s3745383

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MKTG1421 – Consumer Psychology and Behavior

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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 Tran Nguyen Khoi – s3745383

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MKTG1421 – Consumer Psychology and Behavior

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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,...