Impulsive Buying Decisions

A few weeks ago my roommate and her boyfriend decided to make a big purchase and buy an iPad. It was an impulsive buying decision making their decision making process very short. They didn’t exactly have a problem, but they felt that this was an item that they needed and would benefit them. Their second step in the decision making process, search for information, was a very short process considering that it was an impulsive buy they did little to no research on the product, because they had a positive attitude toward the brand and product they were purchasing. So, there was judgment toward their buying decision. They were happy about their purchase and today they love their iPad, so their post-decision evaluation was positive. They also had high MAO. Their motivation was that both my roommate and her boyfriend wanted the iPad and it was a product that was available to them. Also, their opportunity was high because they split the price and had the money to make the buying decision. They both had high felt-involvement for the item as well. Along with this purchase they were able to express the five characteristics of attitudes. My roommate and her boyfriend both had favorability over the product they were purchasing. Their positive attitudes about the product made it easy for them to access the product they wanted and brand from their memories and had a strong hold on their attitudes. This positive attitude lasted at least a day. They went and bought it which isn’t that long but for them their attitude didn’t change so it was persistent and their attitude didn’t ever change so they were resistant. All of these things went through their minds even though it was at a faster pace than most people purchasing this item since it was an impulsive buy. Some people feel guilty or regret their impulsive buys but so far they love their iPad and use it all the time.

NIKE shoes

A few weeks ago my tennis shoes gave out. Completely. Sole ripped clear off the heal. I thus experienced problem recognition. I began to search for some options at Dick’s sporting goods. There were many shoes that were appealing on display, so in retrospect I began utilizing the conjunctive model of decision making. My first attribute that I utilized to eliminate options was style. If I liked the way the shoes looked I kept them as an option. I narrowed my options down to three pairs of shoes. Two were Nike, one mostly black accented in light blue. The other mostly black accented in pink. The other was a pair of new balance that were pink, white and black. I moved to price, however they were all comparable in price, within ten dollars of each other. I then moved to brand. I first went to my prototype which is NIKE shoes. Nike shoes for me represent a schema of attributes including high quality, comfortable, and stylish. My experience with Nike has been mostly positive and I have never owned a pair of new balance sneakers. Because of this I eliminated the pair of new balance shoes, leaving me with light blue and pink NIKE. Between the two I went back to style. Which appealed to me most? I ended up purchasing the pink pair which were a bit more expensive however, more appealing to me. I love my choice so far and have not experienced any buyer’s remorse.

The Red Box Trap

I often find myself wasting too much time on nonsense when I could be doing far more productive things. One of the activities I find myself throwing away time at is red box movies. The fact that they are so accessible and cheap is just overpowering. For 1 dollar I can lay around for two hours and be semi-entertained. The other night I found myself watching scott pilgrim vs. the world. I had no real burning desire to see this movie and I could have been studying or doing homework, but I fell into the "red box trap" non the less. It was an absolute horrible movie and I knowingly wasted my time watching. I feel that too often this is the case with my time management. I knowingly throw away hours at a time on silly movies just simply because I can. It is just so easy to go down the street and grab a movie for a dollar and waste my time away watching it when I know I could be doing better things.

Oh yes I bought a motorcycle

So it all started about 2 months ago when my dad called me to tell me about a motorcycle at a house he is selling. I grew up racing dirt bikes and have wanted to buy a motorcycle for a long time, but I have just never had the extra money to buy one. Anyway, my dad tells me about a 1982 Honda Goldwing, you know the huge motorcycle with the windshield, you see old men going down the intestate on. The people were selling it for $1,500, well I do not really have that money just laying around, but my dad tells me to come check it out anyway. So I go check it out and they tell me that they want 1,500 for it but if I want it they would sell it to me for $1,000. But there was a catch; they had two different people say that they would come by after work to buy the motorcycle for 1,500. Well at the time I did not know a whole lot of information on Goldwings. I definitely had a time restraint; I did not have much time to make a decision. I did know that these bikes go for quite a bit more than $1,000 so I justified in my head that I could buy it and just flip it.

Let’s take a moment and go through my decision making process. First, need recognition, there is no way I can justify a need for a motorcycle but I had wanted one for so long that it became something I needed! Second, information search, I have done lots of research on motorcycles and have rode many different bikes. Third, evaluation of alternatives, I had not given much thought to alternative because at the time of the situation I was not in the market for a bike so my two options were spend the money and get a bike that I did not really want or go home with no bike and keep my money. Fourth, the purchase, well I made the purchase. I bought the motorcycle! Fifth, post-purchase evaluation, this was my number one concern throughout the process. Would I have buyer’s remorse? Nope! I did not, I loved it, I was becoming attached.

I did however decide I was going to sell it because I knew I could sell it for more and it was not the bike I wanted. About a week later I was going through craigslist where I stumbled across an ad where a person wanted to sell or trade his 1972 Honda CB750 Four. He said he wanted $4,000 or trade for a Goldwing. I said, “What the heck, why not!?” I went ahead and sent him an email telling him all about the motorcycle. He gave me a call and we decided to meet up. I was excited; this is the actual motorcycle I have always wanted! So we met up in Nashville Indiana and his motorcycle was in great condition. Well he decided he wanted to trade! So we traded and I got the bike I have always wanted for much cheaper than I would have ever been able to get. I have had it now for about a month, I have cleaned it up, lowered it, put a straight bar on it and a 4 into 1 exhaust. That may mean nothing to you but I love it! :)

Online Shopping & The World Series

I, like many college students, happen to share a common pastime with soccer moms and rural communities across America: online shopping. With the invention of the internet (thanks, Al Gore), the average college student has access to the purchase of just about any product in a variety of stores from the comfort of our own dorm room or apartment.

Just this weekend, the St. Louis Cardinals won the World Series! Being the avid Cards fan that I am, I recognized a problem and thought to myself, "Hey, I need a World Series champions t-shirt." So off to the internet I went, and quickly found myself browsing my prototypical online sports store, Football Fanatics. Their store is the only one I've found that fits the schema I've set for an online sports store: it has an abundance of products from every one of my favorite teams, items I cannot find anywhere else, fair prices; and a reasonable, flat-rate shipping price.

I began to bypass items from official MLB outfitter Majestic and exclusively searched for items manufactured by my prototype brand for sporting attire - Nike. I have hardcore brand loyalty to Nike and subsidiary brands because of numerous positive past experiences and the brand fulfills any and all social, functional, and symbolic needs I may have from sporting goods.

I was unable to find a Nike product that I felt could satisfy my perceived need for a World Series champions t-shirt, but because of the dynamic nature of needs, a new need arose as I felt I had to purchase some sort of Cardinals shirt mostly in honor of this momentous occasion, but also because I had spent so much time already looking.

I made a low-involvement decision and settled on this super cool long-sleeved t-shirt; just like that, my latest online shopping adventure was over and thirty hard-earned dollars were gone.

Soccer Cleats: Price=Quality ?

Buying new soccer cleats, this is a consumer buying process that I have been through many times before. The problem recognition always starts the same in that I tear out of an old pair. The reason why I have gone through this process so many times is because typically soccer players will have three or at least two pairs of cleats. The first two are for normal hard ground play and the third specifically designed for wet/soft ground and each will usually last about a year to a year and a half.

Each information search begins with the evoked set implanted in my memory. This includes the brands I like, dislike, admire, and the shoes I can or can’t afford. This is when friends or my reference group comes into action with each friend thinking they know everything there is to know about soccer cleats.

There is so much risk derived from product availability. If you want to buy shoes from a local store they probably don’t have the styles/colors you want but if you buy them online you get the style and colors but trying them on is not available. These are shoes that are going to be worn through a whole season so of course there is going to be a high level of involvement. The comfort, styling, price, and other aspects all come into effect but rarely do players find a shoe they are truly happy with leading to the reason why there is almost always some buyer’s remorse over the purchase.

The reason why I’m writing this blog post is because they best shoes I have ever had were $55. On average I would spend around $110 for shoes but these $55 shoes I felt out-performed all my other shoes according to my standards. This information I realized is contradictory to normal consumer behavior where we assume higher price means higher quality. After I bought the $55 shoes I continue to buy them even today. Does anyone think this could be applied to the entire shoe market?

Late Night: It has to be Taco Bell

At least once a week, myself and a group of Smith Hall R.A.s will decide to make a late night run to grab something to eat. We have multiple options to choose from. There is Wendy's, McDonald's, Subway, Deluxe Donuts and many more within a couple miles of A.U. We even have the option of driving a little further for late night IHOP, Steak N Shake or Buffalo Wild Wings. But in almost every situation, we decide to go to Taco Bell. What is it that makes Taco Bell so appealing to us? Why do we choose to eat there almost every time we go out?

For whatever reason, Taco Bell is in all of our consideration sets. There is something about the grade F meat, cheese and greasy chicken that is so appealing to all our taste buds. For me, Taco Bell is my prototype for fast food. To me it is more unique than other fast food and there are more options than you get at a burger place. You can choose from anything from mexican pizza and nachos to double layered tacos with a layer of cheese in between. Even so, the food isn't the reason we choose to eat at Taco Bell as a group late at night.

At the beginning of the year, the first time we ate out together we went to Taco Bell. Because of the good time we had, we continue to choose Taco Bell. We do our best to recreate that same night because it satisfies our need for food and for time spent with friends. Our decision is positively reinforced by being rewarded with a good time and food that we enjoy but regret eating afterward. Taco Bell has become a habit for our group of friends. Very little effort goes into our decision making process, if we are hungry and it is past 10 p.m., you can bet your life we will be at Taco Bell.

What Goes On In The Front Row

I am currently sitting in the Consumer Behavior classroom, discussing with those sitting around me how our blogs are due on Monday and how we need to get them done. While we are discussing this, Misty pulls out a pack of Extra Kiwi-Watermelon gum and starts to describe how bad it is, how the flavor doesn't last more than five minutes, and how she really regrets her purchase. Brennen and I, being the CB nerds that we are, start talking about buyer's remorse and reference groups. Professor Colvin walks in smiles at our conversation and how well we can implement it into our lives. I then realized how I could use this situation for blog! Misty bought this pack of gum, most likely because she saw an advertisement for it, or she was attracted to the bright packaging or the description of the flavor, and since this particular pack of gum is a low-effort purchase, she didn't give much thought of investing $1.50 into this purchase. All of her steps of the decision process went rather quickly...except for the end evaluation. Her buyer's remorse is so strong that it was brought up in casual conversation. Her negative word-of-mouth has convinced me that this brand and flavor of gum is not worth buying, and Extra gum has lost one more customer. Also, she gave me a piece, and I can attest that this is not the best piece of gum I've ever chewed. So there you have it. The decision making process, buyer's remorse, and reference groups all in a few-minute conversation before Consumer Behavior class. That being said, I should probably start paying attention now, because we have a test on Monday...

10-6 to 0-7

On any Sunday during the fall, my location is pretty predictable. I am staring at a t.v. watching the Indianapolis Colts. I am decked out in blue and white with my jersey and hat. I have started my pre-game rituals and I am blowing up my twitter feeds about my excitement, joy, and recently extreme frustration. I am calling or texting my family to celebrate the victory or complain about the defeat. For as long as I can remember, I have been a Colts fan. I have spent money on jerseys, posters, flags, banners, hats, hoodies, stickers, away game tickets, and home game tickets. I invest my time. Since I was young, I have invested my time, energy, and money into the Indianapolis Colts.

Over the past 5 years, I have been to over 25 Colts games. I do not own season tickets but would buy them game by game. When someone would suggest to go to a game or when opportunities to purchase tickets game around, I bought them immediately without hesitation and without any regard to the financial risk. The Colts have been the most winning team in the past decade. A win was almost a guaranteed. Fans were almost guaranteed a quality experience, entertainment, and of course a win. There was no uncertainty regarding the outcome of the purchase decision. There was no perceived risk.

Times have changed. The Colts are 0-7 this season and are almost guaranteed a loss. While I still am a Colts fan and will forever be one, I acknowledge the perceived risk of attending a game. The perceived risk is that I will spend money on tickets, food, transportation, parking, and knowing me a jersey too and that the outcome will be disappointing and I will regret my decision.

After going through the decision making process, I bought tickets and I will continue to by tickets no matter the risks. The perceived risks do not have an impact on my purchase but I do acknowledge it. My loyalty and passion override any of the potential risks.

Go Colts.

Buying an SLR Camera

A while back I decided to go to Robert’s, a camera store, because I needed a new lens cap for my camera. My parents suggested that I look at the SLR cameras that they had for sale. We began talking with the sales associate who told me about a special deal that they were having this week that lasted for another day or two. He asked me about my camera, and he told me why I might like a new one. I had been thinking about getting a new camera, but hadn’t put too much effort into actively seeking to buy one.

The sales associate made me realize that I had a problem: I wasn’t able to take the best quality pictures that I could take. He talked with me about my actual state and then presented me with the ideal state. He showed me the special features with an SLR, and he displayed a large picture of what I could be taking. I was motivated because it would allow me to take better pictures and get the quality I desired. My goal at that point was to have a nicer camera.

I had one night to make this decision. My parents, who at this time were my reference group, kept presenting me with reasons why I should buy it. I am someone who takes time to make my decisions about expensive products. I considered the pros and cons. The perceived risk was that I would spend too much on something that I didn’t absolutely need and something I might not like. My opportunity was constrained by time. I decided to buy it, and I love my camera!

I learned that sometimes quick decisions can be made in good judgment as long as you still quickly review the pros and cons. I also learned that I have to differentiate between how my reference group feels and how I actually feel because I will be the one using the product. Also, you have to think about the sales associate’s job and make sure you can decipher the truth.

"Mylo Xyloto" Purchasoto

On Monday I was driving back from Indianapolis after meeting my parents for dinner and on the radio was the band Coldplay conducting an interview about their new album. I own all of their albums so far and love the band, so instead of switching to a station with music playing I stopped and listened to the interview, enjoying listening to them talk about the new album and its release. As soon as I got back, I went and bought Coldplay’s new album, Mylo Xyloto, on iTunes. What caused this immediate impulse purchase?

Throughout our text we discuss the decision making process and how it affects our purchase habits. When I bought the new Coldplay album, the first thing I noticed was that I had a problem. The interview I heard created a new ideal state in which I had and could listen to the Coldplay CD. On the radio they were playing Coldplay’s older songs and one of their new songs, but this sample created a problem for me that Coldplay released a new album and I needed to listen to it.

I then began to internally search for information about the product and for solutions. I searched internally and considered the couple songs I had already heard from the album and compared them to past Coldplay songs. I even searched externally asking a friend of mine who also loves Coldplay if he liked the new album or not. This decision was mainly low effort, so I did not search very long and quickly moved on to evaluating my alternatives.

I remembered a couple other bands I enjoyed that had come out with new CD’s as well and weighed my past experiences and listening pleasure among them. This was mostly affective based as I thought about my emotional feeling after listening to the CD. I also evaluated my alternatives in purchase. From my evoked set, I considered getting the physical CD from Wal-Mart, digitally download from iTunes, or illegally download the album. The most convenient and cheapest choices were online, so I narrowed down my selections. I chose iTunes because I support Coldplay and love their music, so I wanted to support them with my money instead of “stealing” the music.

I then made my purchase decision and bought the album on iTunes. I listened to the whole album as soon as it finished downloading and have listened to it numerous times in the past two days. As I moved onto my post-decision evaluation, I posted on my Facebook my liking toward the new Coldplay CD and found I had other friends who felt the same way. This reinforced my purchase decision and made me feel even better about my decision. The CD was great and that small purchase was just one example of how we use the decision making process in our purchasing habits every single day.

Short Shelf Life = Popularity

One thing that I have noticed when I go to any grocery store is that people, (including me) sometimes decide to buy certain brands based on how many products are on the shelf. For example, when I went into the grocery store yesterday, I noticed that there were many people in the candy aisle (which makes sense because it’s almost Halloween). I observed these people for a few minutes and I noticed someone who picked up a bag of candy and considered it, while looking over to the candy nearby that was almost sold out. After thinking about for a couple of seconds they put the candy down that they were holding and decided to purchase the other one instead. The two bags of candy were around the same price, but the fact that one type of candy was almost sold out might imply that it is a better brand of candy. I didn’t even realize that I did the exact same thing when I was buying vegetable oil. I picked up the Crisco because that was what I was used to getting, but then I noticed that a lot more people had been purchasing Wesson. They were almost the exact same price, and I never thought about the possibility of the Crisco having been restocked. I just noticed that there was less Wesson on the shelves than Crisco, and I automatically thought “this must be the one that’s more popular.”

Beaten at my own game

Today, I did something that many college students never achieve: I reached 100 monthly points on my Kroger Plus card. I'll take applause later. I wasn't familiar with Kroger before I moved to the south, but for each 100 points a customer earns in a month, the store will take 10 cents per gallon off their gas price. This allowed me to fill my tank today for $3.19 a gallon.

"Congratulations, you saved 80 cents," my boyfriend laughed cynically as I returned to the car. I hadn't thought about it like that before. I had worked so diligently to buy my groceries from one store (sorry, Walmart!) I had paid attention to my point total so my October points wouldn't expire! I had done everything right. But I'd only saved 80 cents? I'd totally fallen prey to Weber's Law.

Why is it that the price of gas messes with our heads so much? My just noticeable difference for gas is only one cent. After growing up with gas being a dollar or so a gallon, my understanding of present day prices is totally skewed. But to fill my entire 12 gallon tank at Kroger's discounted rate, I would only save about $1.20... not even enough to buy me a sip of my normal coffee drink at Starbucks.

Marketers manipulate pricing all the time to make consumers believe they are getting a great deal, and each person's just noticeable difference for each product is a little bit different. Kroger marketing department: you got me.

People like to be remembered

At my work we have regulars. We have people come in at the same time, on the same days, and they get the same ice cream. My favorite is when they act suprised that I know what they want, as if I haven't seen them before and they don't come in everyday. Repitition has caused their order to be in my long term memory.

People like to remembered. We get better tips from those who we recognize than those who stop in whenever. So my connection to what we have been talking about in class is that consumers like to feel individual and recall-able, if that's a word. I might take 100 orders today, but I literally forget most of them instantly. So if I am able to remember a few, the consumer feels special, and I get an awesome tip. $$$ It's just like that theme song from the show Cheers.

So, yay for long term memory!

The Effectiveness Of Source Credibility

I've never been a person to put too much weight into celebrities or expert's opinions, at least on television. This method, although proved to influence consumer's opinions, makes me skeptical. Take sex appeal for instance. Many advertisers know that utilizing in a hot market celebrity in an add will draw in the easily duped and impressed. Just because Britney Spears and Michael Jordan supposedly eat at McDonald's does not make it okay for me to stuff my face with 2000 calories. Britney Spears in not a credible source that I reference when I decide where to eat. In fact, I don't think I've ever knowingly been swayed by a celebrity endorsement for food.

All of this to say, unless I was overwhelmed by the effectiveness of celebrities endorsing random products, I would stay away from this method of advertising. I would want my company to come across as factual and sincere. Modern American culture relies too much on the opinions of the rich and famous.