Rachna Purohit

Student number: 001755243

Subject: Consumer Behaviour
Subject code: 9023CB
Words count: 2756 words
Index
1.Introduction........................................................................................................3
•Decision-making model..............................................................................4
2. Scenario 1..........................................................................................................6
•Input...........................................................................................................6
•Process.......................................................................................................7
•Output........................................................................................................8
•Recommendation.......................................................................................9
3. Scenario 2.........................................................................................................11
•Input..........................................................................................................11
•Process......................................................................................................12
•Output.......................................................................................................13
•Recommendation......................................................................................13
4. Scenario 3..........................................................................................................14
•Input...........................................................................................................14
•Process.......................................................................................................14
•Output........................................................................................................15
•Recommendation.......................................................................................16
5.Customer satisfaction and loyalty......................................................................17
6. References.........................................................................................................21
Introduction
This report will portray my decision-making journey of three different
purchases from three different retailers. The first scenario – buying a
car (BMW) was the most expensive and most satisfied customer
experience whereas the second scenario-buying an all-inclusive
vacation from Norwegian Cruise Line (NCL) was a satisfactory one with
a room for improvement. The third scenario- a meal from Mcdonalds
was one of the most unsatisfactory experience resulting in losing the
trust in the retailer.
The car purchase from BMW was above and beyond the expectations
and resulted in repurchase of another family car of the same brand for
our secondary needs. Recommendations have been provided to NCL to
improve customer service to make the experience a little better and
memorable to change customer perception and increase customer
retention. Both NCL and Mcdonalds lacked customer service which is
one of the most important measure of customer satisfaction. They
should be more customer focused and product/service oriented to
satisfy customer needs and infuse brand loyalty.
Decision-making framework: The consumer decision-making model
includes three components: input, process, and output. This model ties
together the ideas of decision-making and consumption behavior. It
does not provide the exhaustive picture of complexities of decision-
making. Rather, it provides a design to synthesize and coordinate
concepts in to a whole (Schiffman et al. 2014).
Source: Schiffman LG, O’Cass A, Paladino A & Carlson J 2014, Consumer
behaviour, 6th edn, Pearson, Australia.

The impact of digital culture has drastically changed the consumer

behavior. Both the trade press and academic research document the
shift in consumption practices instigated by the rise of web-based
‘participatory culture’ where each user can be a producer, influencer
and/or consumer of information (Jenkins, 1992). All three of my
purchases has been inspired by digital culture and integration into
networks with other like-minded individuals through reviews, blogs,
and other social media channels. What has also changed more recently,
are the powerful tools now available that allow creation of choice sets
by customising an electronic shopping environment (Wang & Cho,
2012). We can categorise the online evaluative tools that help to create
and narrow choice sets as either passive (reading product reviews,
blogs and polls) or active (stating preferences a priori using live chat
windows, comparison matrices and ordering and ranking tools)
(Breugelmans et al., 2012).
Scenario 1: Buying a BMW
Source: Created for assignment
Pre-purchase (Input): Consumers act and react on their perceptions,
not on the objective reality. Perceptions of product attributes consider
the experiences, expectations, beliefs and impressions that the
consumer associates with products and brands. It is affected by
advertising, reviews, public relations, personal experiences, social
media and other channels (Schiffman et al.2014).
Traditionally, once a consumer is aware of a particular want or need, he
or she consults different sources of information to identify choice
options (Palmer, 2000), from marketing messages, other people and
also past experiences (Solomon, 2015). Digital culture has shifted our
reliance away from professional sources of marketing information in
favour of non-professional sources such as consumer reviews, search
engines, blogs, branded social media pages or customer-created photo
feeds (Wolny & Mueller, 2013).We did an extensive online research
about the product, price and distribution of the car. The positive
product reviews, social media recommendations and word of mouth
helped us to perceive BMW as a high performance, luxurious and
reliable car. “Master every performance, enjoy every moment”
(www.bmw.ca) attracted us as a consumer where we were driven by
“Smoothness meets exclusivity and Luxury meets performance”
(www.bmw.ca). Their website was very informative and navigated us
with the proper product knowledge and perceived risks.
During-purchase analysis (Process):
Need recognition, motivation and personality: My “desired state”
triggered the decision making process.Being a millennial, I wanted to
complement my accomplishments both at personal and professional
level. I was interested in both performance and in comfort. My
motivation was to ensure maximum safety for my new born child. The
heads-up display helps tremendously while using the navigation
system. That means no more taking my eyes off the road to look at a
screen. The control on the wheel make it less distracting to answer
phone or navigate the radio. The large number of airbags made the car
safe and reliable. The heated seats were very useful for my family on
extreme Canadian cold days. The ample leg room was very much
desired and appreciated by my tall family members. The large trunk
was appropriate for the baby’s stroller and our increasing family needs.
We evaluated four luxury brand alternatives-Audi, BMW, Mercedes and
Lexus. While test-driving, it felt like driving a dream.When driven in a
BMW, I could sense a calmness. It was a peaceful riding experience, and
I think that is what I paid for. It worked as a symbol of the success I
have achieved at my work. The luxury, great design, speed and
performance captured the pure enjoyment of driving.
Factors affecting the decision-making: As mentioned above, the family
played the most important role in the decision-making process. The
word-of-mouth and social peer pressure accelerated the decision-
making process too. The fact that it was a German car, made a
perception of reliability and durability. The customer service at the
dealership was very helpful explaining the features of the car. The
lounge at the dealership had a very pleasing ambience which created a
very positive mood and the experience memorable. Our BMW service
personnel gave us his cell number to call if we ever have a question or
concern. We can drive in anytime just to have the car washed. We feel
as though we're in the BMW family.
Post-purchase (Output): Our experience was positive disconfirmation
of expectations where the product’s performance exceeded
expectations and we as consumers were satisfied (Schiffman et al.
2014). The trial purchase was not feasible, we had to evaluate our
purchase and commit to long-term. The dealership made follow-up calls
for any queries or concerns. They also provided shuttle services when
the car was dropped off for regular maintenance. They reminded us by
a phone call if any service was overdue and fixed the recalls at their
earliest convenience too. All this led to create a sense of brand loyalty
in us and we bought another BMW X5 as our second family car.
There were only two incidences when the customer service was not
satisfactory. Since we were so excited about everything new in our life,
we did not enquire about the regular maintenance after the expiration
of warranty and they did not inform us of any. This might put us in a
very difficult situation in the future giving us the option to either face
high maintenance charges or buy another warranty from the
dealership. Secondly, one time I placed my dog and my purse in the
front seat of my BMW. I proceeded to close the door and walk over to
the driver’s side. To my disbelief, all the doors were locked, and my dog
was stuck in a stifling hot vehicle. I called BMW Assist frantically,
requesting that they open my door. They asked for all my information
including my address, vehicle VIN, etc. The only information I was
unable to provide them with was my enrollment date (as all the
paperwork, along with my dog), was locked in my vehicle. I begged the
woman to ask me any other security question. She said “sorry, I can’t
help you”. I told her my dog was dying and suffocating in the vehicle.
She said without this information she was unable to send a signal to my
car. She was rude, unsympathetic and didn’t care about my dog’s well-
being.
Recommendations: BMW salesmen should tell their prospective buyers
about any hidden or upcoming maintenance charges so that the buyers
can prepare themselves for any uncertainty. Secondly, I understand
that the agent was doing her job, but She should have some empathy
and there should be a secret verification code that a customer can use
in case of an emergency when they do not have their car information
easily available to them.
Scenario 2: Buying an all-inclusive vacation from NLS

Source: Created for the assignment

Pre-purchase (Input): Perceptions can be influenced by creative
advertising that can appeal to the consumers emotions, behavior or
beliefs (Schiffman, et al, 2014). “Get inspired and Start Exploring” and
“The Norwegian Difference” (www.ncl.com) influenced our decision
making believing that the award-winning onboard experience
advertised will make our vacation versatile and memorable and we will
experience our personal paradise the moment we embark. The online
positive reviews and recommendations from the peers aided our
decision-making process to celebrate the special occasion.
During purchase analysis (Process):
Need, motivation and personality: Traditional marketing efforts, such
as advertising and promotions, store displays, catalogues, coupons and
emails, seek to arouse problem recognition as they draw attention to
unrecognised wants or needs (Bruner & Pamazal, 1988). The
“unrecognised desire” to have a long-awaited family vacation after a
stressful year triggered our decision-making process. The motivation
was to spend quality time with the family before going back to work
perceived the need that might be satisfied with the purchase of that
vacation. NCL was a family-friendly cruise with award–winning
entertainment and diverse dining options. The all-inclusive feature set
the clarity of the amount we were going to spend on the vacation.
Factors affecting the decision-making: Since it was our first time on the
cruise, we had no experience as an internal source of information. We
had to rely on external sources such as marketing and external referrals
from friends and family. The positive recommendation from friends and
family influenced us to take the perceived risk. We evaluated the
alternative brands and took the compensatory decision where all the
positive attributes computed a weighted score for this brand.
The NCL consultant we booked the vacation with was helpful and
knowledgeable about the ships and islands. He navigated us with the
website and highlighted all the amenities on the cruise at the time of
booking. We felt him a bit pushy when was trying to convince us that
we had to book the vacation right away otherwise they will be sold out
or the price will increase. But the cruise was neither sold out nor
increased in the price until the departure. We had no choice but to
book it since it was a last-minute booking and their timetable was most
suited for us. We required some information such as day-care facilities,
crib/pack or play but he convinced us that the cruise has everything we
were asking but it is subject to availability and cannot be guaranteed.
But the scenario changed after we did the booking. When we called for
follow-up on our enquiries, we discovered that lots of amenities
advertised on the website were not on the cruise we were sailing on.
When we complained about false salesmanship by the agent, they kept
on saying that supervisor will follow-up, but he followed the day before
our departure. We demanded the refund but since there were not even
24 hours left on our departure, the refund they were providing were
pennies on the amount we spend at booking. We had no choice but to
take the trip.
Post-purchase (Output): The boarding was convenient, and they gave a
special treatment since I was travelling with an infant. We booked the
room with a balcony but since it was the corner one, the balcony was
half the size of other balconies. They had to use the other half for
storing safety equipment. When we complained that the agent never
informed us about the situation the manager offered us the upgrade to
a “mini-suite with an unobstructed view of the ocean" at half the price
and free onboard credit for the spa. We asked for free upgrade, but the
manager suggested to apply for the refund on completion of the trip.
The rooms were clean, and the staff were very courteous at every
point. They made towel animals for my baby everyday. The chef made a
special cake on my son’s first birthday and all the travel folks celebrated
the special evening that turned out fantastic for us. The agent told us
that there is a day care on the cruise so that we could have some adult
time like a massage at the spa together, clubbing at the night or
participate in adult dance contest but the day care was not operational
at the cruise. I agree that we did not had lots of couple moments
together, but we had great family moments, and all is well that ends
well. From the food to the entertainment NCL was fantastic!
Recommendations: Upon returning from the trip, we submitted our
claim with proof of expenses for room upgrade. After following up for 6
months and leaving multiple bad reviews of bad customer service on
social media, we got the reimbursement. For maximum customer
retention and increased brand loyalty, NCL must improve the customer
service at the back-end. Changes in the business environment are
rapidly transforming sales practice and pressuring the integrity of key
actors in sales.( The sales team was interested in a sale rather than
helping the customers. Salespersons are now working in increasingly
complex social settings, where they are expected to deal with various
company-external factors (Plouffe et al. 2016). Such environments
expose them to conflicting interests and pressures that eventually lead
to misconduct (Bush et al. 2017). The salesman should not misguide the
buyers about the amenities on the cruise. If the crew member were not
fantastic as they were, I would have never thought of rebuying a
vacation from NCL. We had the most memorable experience and we
would like to purchase again but with little more due-diligence next
time.
Scenario 3: Buying a meal from Mcdonalds
Source: Created for the assignment.
Pre-purchase (Input): Mcdonalds is perceived by me as a fast food
restaurant and they portray in their advertisements that they are
passionate about their food and find ways to show commitment to
their customers and food. They are proud of their commitment to
quality and prepare food just the way the customers like it
(www.mcdonalds.com).
During purchase (Process):
Need, motivation and personality: After a stressed day at work, I had
an “actual” need to eat something to suffice my appetite. There was no
pre-purchase search and no relevant past experience as internal source
of information.
Factors affecting the decision-making: My decision to buy a meal was
influenced by sociocultural factors such as family and friends. There
were mixed reviews on the social media which prompted me to try it
once. The restaurant was close to my work and since it did not involve a
large amount, I did not even consider evaluating alternatives.
As opposed to advertisements, Mcdonalds did not provide the quality
food at all. I was very hungry after work and decided to grab something
quick. I ordered the coffee on the app so that I do not have to wait for
my order. When I reached there, my coffee was not ready and there
was a big line up. Since I had to wait for the coffee, I also ordered a
vegetarian burger. As mentioned in the diary, neither could they deliver
me a hot coffee nor a vegetarian burger.
Post-purchase (Output): When I complained to the manager that the
salesperson gave me a meat burger instead of vegetarian burger, she
refunded me the money. I was very upset about my religious feelings
and wanted to take the matter to higher officials and social media so
that it never happens to someone else. But then the salesperson
started crying and said that if I take this matter to higher officials, she
would lose her job and would not be able to pay for her college fees. I
let it go and the manager promised me a year of free coffee. It’s been
three months and multiple follow-ups; I have not received any gift
certificate. When I followed up at the restaurant, they informed me
that both the manager and the salesperson have started working at
another location and the new manager cannot provide the certificate
unless he has it in writing from the previous manager which I don’t
have. Now I have no choice but to let it go.
Recommendations: Mcdonalds should improve their customer service.
There are more bad reviews online than the positive ones. It is good to
hire students during summer holidays, but they should be provided
proper training to serve the customers at peak hours and busy summer.
Priority must be given to things be right than being fast.
Customer satisfaction and Loyalty:
Loyalty is rooted in the literature of customer's behavior. Nowadays,
business is increasingly competitive and to maintain and to grow
customers has become the first goal. To strengthen the relationship
between customer and organization in passing through the different
stages of customer relationship management is one of the important
goals of any organization. In this way, customer's satisfaction grows
and the value of the relationship between the parties increases. This is
what leads customers to increase loyalty (Shahrestani et al.2017)
Source: Maklan, S & Klaus, P 2011, ‘Are we measuring the right things’,
International Journal of Market Research, vol.53 Issue 6

Dimension Attribute BMW NCL Mcdonalds

(Customer
service
satisfaction,
word-of-
moth and
loyalty)
Scale of 0-5
0-Lowest
5-Highest
Expertise 4.5 3 1
Peace- of- Process ease 4.5 2.5 1
mind Relationship 4.5 3 1
with transaction
Convenience 5 3 1
Retention
Familiarity 3 2.5 2
Independent 4 3 2
advice
Outcome Inertia 5 3 1
focus Result focus 4 3 2
Past experience 5 3 2
Common 2 2 1
grounding
Moments- Flexibility 4 3 1
of-truth Pro-activity 5 3 1
Risk-perception 4.5 3.5 1
Interpersonal 4.5 2.5 1
skills
Service recovery 4 3 1
Product Freedom of 3 3.5 1
experience choice
Cross-product 4 3 1
comparison
Comparison 4 3 2
necessity
Account 4.5 3 1
management

Source: Created for the assignment.

.

References:
Maklan, S & Klaus, P 2011, ‘Are we measuring the right things’,
International Journal of Market Research, vol.53 Issue 6
Shahrestani, MF, Mohammadnia, A & Faramarz, B 2017, ‘The Effects of
Customer Relationship Management on the Loyalty: Evidence from the
Iranian Insurance Sector’, International Journal of Economic
Perspectives, vol. 11, no. 3, pp. 948–956, viewed 19 June 2019
Ashman, R, Solomon, MR & Wolny, J 2015, ‘An old model for a new age:
Consumer decision making in participatory digital culture’, Journal of
Customer Behaviour, vol. 14, no. 2, pp. 127–146, viewed 20 June 2019
Jenkins, H. (1992). Textual poachers, television fans and participatory
culture. New York: Routledge.
Breugelmans, E. Köhler, C.F., Dellaert, B.G.C., & de Ruyter, K. (2012).
Promoting interactive decision aids on retail websites: a message
framing perspective with new vs. traditional consumer actions. Journal
of Retailing, 88(2), 226-235.
Bruner II, G.G., & Pamazal, R.J. (1988). Problem recognition: the crucial
first stage of the consumer decision process. Journal of Consumer
Marketing, 5(1), 53-63.
Palmer, A. (2000). Principles of Marketing. Oxford: Oxford University
Press
Wolny, J., & Mueller, C. (2013). Analysis of fashion consumers’ motives
to engage in electronic word-of-mouth communication through social
media platforms. Journal of Marketing Management, 29(5-6), 562-583
Wang, Y., & Cho, H. (2012). The effect of fashion innovativeness on
customer’s online apparel customization. International Journal of
Organizational Innovation, 5(2), 263-283.
Schiffman LG, O’Cass A, Paladino A & Carlson J 2014, Consumer
behaviour, 6th edn, Pearson, Australia
Ameer, I & Halinen, A 2019, ‘Moving beyond ethical decision-making: a
practice-based view to study unethical sales behavior’, Journal of
Personal Selling & Sales Management, vol. 39, no. 2, pp. 103–122,
viewed 20 June 2019,
Bush, Victoria, Alan J. Bush, Jared Oakley, and John E. Cicala. 2017. “The
Sales Profession as a Subculture: Implications for Ethical Decision
Making.” Journal of Business Ethics
Plouffe, Christopher R., Willy Bolander, Joseph A. Cote, and Bryan
Hochstein. 2016. “Does the Customer Matter Most? Exploring Strategic
Frontline Employees' Influence of Customers, the Internal Business
Team, and External Business Partners.” Journal of Marketing
www.bmw.ca
www.mcdonalds.com
www.ncl.com