Involvement of Consumers in Decision Making

Definition of Involvement:

The involvement theory is based on the concept that there are low and high
involvement con 颅 sumers and there are high and low involvement purchases.
According to this theory consumers involvement depends on the degree of relevance of
purchase to a consumer. If for instance, consumer wants to buy a packet of tea or food
or bread or butter he does not feel very much involved. It is because the life of these
products is very short and ones consumed they exhaust. If the experience with the
product is not good, next time some other brand can be purchased.

However, this is not true in case of consumer durables and certain services. If one buys
an automobile, refrigerator, air conditioner, furniture, or a house he is forced to use it
for long period and cannot change early and if he decides to dispose off there is big loss.
Hence in these products there is high degree of involvement, therefore, consumer takes
a decision after lot of deliberations. In case of insurance policy ones taken one has to
live with it.

If a child has been admitted to a particular school, the child is forced to study in that
school till the end of the session. If someone gets himself admitted in a hospital for
operation it is not possible to withdraw till the operation is completed even if one is not
satisfied. Such products and services have high degree of involvement and long term
consequences. Therefore, consumer should make lot of inquiries before making a final
decision so that he may not suffer later on. These are called high involvement purchases
and involve high risks. As against this purchases of daily consumer items are items of
little perceived risk because one can change over to alternative at the time of next
purchase.

Thus involvement is a theory of consumer learning which presumes that the degree of
interest in purchase of an item depends upon risk involved which is from limited risk to
extensive risk and the involvement depends upon the type of product under
consideration for purchase. The risk involved decides the degree of involvement and
comes in selection of a product.

Based on this hypothesis researchers have developed theories of high relevant/high

involvement, low relevance/low involvement. In case of high involvement products the
consumer collects all possible information and access it in detail based on his
knowledge and makes efforts to get the opinion of family members, relatives and
friends and some times even of experts.

If some one decides to buy a car he will consider large number of attributes but in case
of daily consumption items, the same consumer will make quick and effortless decision.
The involvement is dependent not only on nature of product or service to be purchased
but also on the psychology of the consumers. Even for same product involvement is not
uniform for all consumers. For instance if a packet of tea or biscuit is to be purchased,
there are consumers who take it casually and simply ask the retailer to give a packet
without mentioning any brand and everything is left to the retailer.

For such consumers tea is tea and biscuit is biscuit. They are not brand conscious nor
make any investigation before purchases. But for same tea or biscuit there is other set of
consumers who will collect information about various brands available in the market
and their attributes. Thus degree of involvement differs not only on the nature of
product but also on the psychology of consumers.

Some consumers take risk even for vital services and products. They take decisions
without consideration of all attributes. For instance, if some one needs to be admitted
into a hospital for treatment of serious injury or fracture there are persons who will take
treatment in a near by hospital. But there are other persons who in a similar situation
will make lot of inquiry before deciding the hospital for admission.

Thus there are two set of factors which decide the degree of involvement:

(I) The nature of product or service and

(II) The psychology of the consumer.

Still it can be generalized that degree of involvement depends upon perceived risks in
buying a particular product, the higher the risk, the deeper is the involvement. Based on
this generalization there can be three degrees of involvement – high, medium and low
depending upon period of impact of purchases. Higher degree of involvement is in a
product of long life or in services which have long term impact on consumer. The
medium degree of involvement is in items or services which have medium term impact
upon life and the low involvement is in product and services which have short life and
once used cannot be used again, “a few illustrations are given in Table 14.1”.
The marketers study the level of involvement in different products and services and
accordingly make strategies to influence the consumers through mass communication
i.e. print media and electronic media.

Antecedents of Involvement:

The degree of involvement depends upon past history of buyer i.e. on his level of
knowledge, information, psychology, culture, life style, social system. Depending upon
the circumstance of an individual, his involvement differs even for the same service or
product. There is no clear cut and universally acceptable definition of involvement.

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According to one view there are five types of involvement namely:

1. Ego involvement.

2. Commitment.

3. Communication involvement.

4. Purchase importance.

5. Extent of information secured

Accounting to Judith L. Zaichkowsky (conceptualizing) involvement (Journal of

Advertising 15 (2) 1986), the involvement theory deals with advertising, with
products, and with purchase decisions.
There are other researchers who see the person, product and situation as major
important part of involvement. According to David W. Firm in his article on the
Integrated Information Response Model in Journal of Advertising (1984) the
involvement depends upon purchase situation.

In spite of the fact that there is no unimanity about the concept of involvement, it is an
important element of consumer behaviour and purchases of all high value and durable
products depend upon it. Similarly services which are vital for life like medical
services there is high level of involvement.

Ego involvement is to satisfy ones ego. For instance, if in a family there are five –
members husband, wife, two daughters and one son every one would like to be
involved in purchase decision not only for a product he consumes directly but also for
products consumed by other family members.

Wife would like to be involved in purchase of shaving cream, underwear and

garments for her husbands. Husband would like to be involved in purchase of
cosmetics for the use by his wife and /or daughters. The son and daughters would like
to be involved in purchase of TV, Car, house for satisfaction of their ego that they
must be consulted before purchase and due importance should be given to their
views-likings / disliking’s of a particular brand or model of a brand.

Commitment is another factor of involvement. If wife or son has to be treated for any
illness, husband or parents are highly involved in countries like India where there is
great attachment in each other. Parents are committed that their children get best
education within their means so that they may make good future for themselves.

Communication involvement relates to share the available information with others in

the family and /or organization who are involved in buying a product or service. For
example, if a right dentist is to be located for treatment and if one member has some
information on the subject, he should communicate it to the person who is going to
take a decision.

Similarly if some one is going to buy a car and some one has information about one or
more models he should communicate to other members. The other side of
communication involvement is that marketer must make the information reach the
consumer i.e. there should be proper and effective communication between seller and
buyer whether it is FMCG or consumer durables or in industrial goods.
The involvement also depends to a great degree on the importance of purchase. If
some one needs bypass surgery of heart best possible hospital and heart surgeon will
have to be located, thus there has to be high degree of involvement. If an house or flat
costing Rs. 10 lakhs to Rs. 50 lakhs or more has to be purchased the location should
be healthy, house title should be clear to avoid risk of ownership. Against this if one is
buying wheat or sweets there are little risk and so level of involvement is low.

The extent of information search is part of purchase importance. If the purchase is

important; information search is intensive from all possible sources. But if the
purchase is not important and is of routine nature there is limited information search.

Low Involvement Decision Making:

When the stake in an item to be purchased or service to be utilized is not much and
the risk of wrong decision is only short lived, decision making involves low
involvement. If for instance consumer decides to buy X brand washing powder and
does not find it suitable it can be rejected and repeat purchase is not made of the same
brand. But the loss due to buying decision is limited to the cost of the powder.

If one develops fever and visits near by doctor and he takes longer time than normally
required he can be discarded. If some one sends a courier mail from Delhi to Mumbai
and it does not reach next day the service can definitely be rejected for next mail but
if the mail contains important documents delay may cause loss and so risk is involved.

Thus the low involvement does not depend entirely on the nature of product or service
but also on other factors such as its consequences. Therefore, even in some low
involvement product or service decision making has to depend upon other factors too.
However, on the whole generally no or very limited inquiry is done tor low
involvement items. Very often some inquiry is made from seller but its attributes
vis-a-vis of alternatives are not evaluated.

Unplanned Purchase Behaviour:

All purchase by any consumer is not preplanned. When a wife visits a market for
planned purchases and if something which was not in the list she likes or finds it a
bargain on-spot the short decision is taken for purchase which is called unplanned
purchase. The unplanned purchases may be defined those purchase decisions which
are taken on the spot without any prior planning.
Such purchase is quite large when one visits an exhibition or visits a religious place or
visits mela like Khumbh Mela. One sees many products at these places and makes
purchases for oneself, relatives and friends, for gifting or when innovative products
are available. Generally when one visits such places he takes money for such
purchases but does not know what he is going to buy.

The purchase decision in such circumstances is called unplanned purchase decision.

The basic point to observe is that no prior inquiry is made nor prior information is
collected. But in such purchases also often alternatives are available and one has to
decide which product is better. This depends purely on mood at that point of time and
liking or disliking of a particular product or its alternative. It will not be correct to say
that all unplanned purchase decision is taken without considering alternatives.

Theory of Low Involvement:

Low involvement is applicable when neither performance nor image dimensions are
very important. In such cases there is very vague or shallow impression and product is
readily accessible. For instance, if one buys sugar one is not bothered about the name
of the factory which produced it because all sugar is alike.

This was the case with wheat flour also till recently but now with a number of brands,
the level of involvement is increasing. In India where larger number of products is
sold without brands the level of involvement is low. This is particularly true of rural
market or poor persons purchases who largely buy a product and not a brand. In such
cases use of brain is very limited. For poor person tea is tea and sugar is sugar. He
takes decision largely on price consideration because “beggar cannot be chooser”.
Thus use of brain is minimal.

According to involvement theory involvement depends upon the importance of

product in purchase. But this is not always true. In India a person below the poverty
line only decision is that he must get a product be it wheat, tea, sugar, bread or milk,
because he has little choice to make.

However, theory remains in tact that the level of involvement depends upon the
product to be purchased and involvement remains low in case of commodities and
goes up as the level of purchases relates to branded products. The persons, the product
and the situation decides the degree of involvement. Thus a poor person in India has
low involvement in purchases. The product of general nature and of daily
consumption does not involve much risk and so have low involvement.

The other important factor in low involvement theory is that purchase decision in such
cases have little impact of advertisement and consumer tries new brands for
experience and adopt them if found suitable. In such cases job of marketer is to make
consumer aware about a particular brand so that it may be purchased instead of
alternatives.

There must be attractive displays in shops and stores so that it may catch the eye of
the customer Packaging also induces customers repeatedly some brand and packaging
promotes purchase behaviour in case of low involvement products.

Strategic Implications of Low Involvement Decision Making:

In case of low involvement decision making it is more likely that consumer changes
the brand if he finds equally good brand in the market or there is bargain sale or
discount sale. In products of low I involvement there is class of consumers for whom
“brand loyalty” has little meaning. Moreover studies in India suggest that brand
loyalty is weakening.

The bargain sales are attracting customers like buy two trousers and get-one free, buy
a toothpaste and get tooth brush free, buy Nature Fresh Atta and get a scratch coupon
free. There are a number of others who offer 10 to 20 percent extra quantity without
extra price.

The consumer purchase decisions are influenced by such bargains because he belongs
to none specially in case of low involvement products. The thumb rule in Indian
discount bazars is that who gives best deal to buyers thrives. It has been realized by
marketers that price value score cover brand.

This trend is most visible not only in garments but also in FMCG. Therefore Lux
offered Rs. 5 discount. Good Knight mosquito mats offered free soaps, The
management of Shoppers Stops admits that discount sales work well for its store
because it sells more and attracts new customers Bombay Dyeing has discount sales
every year.

Since Bhilwara group announced 15 to 50 percent discount its sales have doubled. If
there is no basic difference in a product consumer decision is based on discount or
incentives available. But brand loyalty is continuing in certain items like cosmetics
and design and quality conscious customers. However, the share of such buyers in
total is declining and strategic planners will have to keep this fact in mind.

Now buyers for low involvement products decide on the basis of price and value over
brand at least in India where purchasing power of majority of consumers is limited.

Complex Decision Making:

In case of high involvement products and services decision making is complex and
difficult. If for example some one is seriously ill besides the reliability of a doctor one
has to look to his pocket and permanent loss of funds if treatment does not succeed.

The heart operation cost Rs. 3 Lakh in one hospital and Rs. 1 lakh in another hospital.
The concern person has to decide whether it is worth spending Rs. 3 lakhs instead of
Rs. 1 lakh. In such case psychology, emotion, price, pocket play a part along with
reliability. There are social culture inputs consisting of non-commercial influences
which are considered. Social class, culture, sub-culture, information, recognition,
opinions of users all play apart.

If some one decides to buy a car, it is available from Rs. 2 lakhs onwards going up to
Rs. 25 lakhs or more for imported car. The decision to buy a particular model does not
depend mearly on technical factors, reliability of operations, trouble free operation but
also on non-utility factors.

The buyer considers his status, ego satisfaction, impression on friends and relatives
and satisfaction that most of his known persons do not process that high price model.
But there are others whose decision is based only on utility.

In that case he has to collect information on all the possible models, compare there
technical and non-technical features, narrow down his choice to two or three models
before taking the final decision. At this stage friend who have experience of driving
that model or who knows about automobiles is consulted.

In any other high involvement item also the process is quite complex. First, one has to
collect information on alternative choices, evaluate them not only in term of
performance, reliability and durability but also price.
One is required to work out cost benefit analysis and terms of payment. It is difficult
to evaluate all these complex factors. When some manufacturer is offering wide range
of TV or refrigerator task becomes all the more complex.

Model of Consumer Involvement:

There is no one single model of consumer involvement in all situations and in all
products but in all cases there are three major components – input, process and output.
As an economist Mc Fadden (1981) has described the multinomial logic model based
on macroeconomic theories of choice. In contrast, Yellot (1978) has described the
same model as a descendent of psychological theories of comparative judgment
development in the late 1920.

In figure 14.3 a taxonomy of theoretical choice model form is given. The economic
theory presumes that an individual attempts to maximize utility and thus choice is
made in such a manner as to achieve this objective.

The common models have three components as discussed below:

Inputs:
The inputs factors are external factors which influence product related values,
attributes and behaviour of buyers. The marketing mix activities and social cultural
inputs are the factors which influence the purchase decision for a particular product or
service.

The marketer tries to influence the consumer by making him aware about the
availability of a product or service through advertisements, mailing literature to
customers or personal communication. All marketing and promotional efforts are part
of marketing inputs. It includes product, packaging, mass media, direct marketing,
personal door to door selling, e-mail, telemarketing, distribution channels, pricing,
discount sales and promotional measures. The impact of these efforts depend upon
consumer perception and therefore marketer evaluates them continuously and modify
their strategy when justified.

Social Cultural Inputs:

Social Cultural factors influence consumer buying decision and need not to be
repeated. It will be enough to mention that social cultural factors may support certain
products and services and may reject some others which has to be kept in view by
marketer.

Process of Decision Making:

The process of buying decision is concerned with the process adopted by buyers. He
considers perceived risk

The perceived risks may be of following types:

1. Performance:

The product may not perform as expected at the time of purchase.

2. Physical Risk:

Some products may harm physically to the user or others. For instance, synthetic
fabrics are not considered safe for user. The ne-chemical and electronic products may
causes injury due to defects in the products or due to its very nature.

3. Financial Risk:
The product may not be worth its price For instance, there are many management
schools and computer centres who charge heavy fees and one pays though his nose in
the expectation that good job will become available after passing out but when one
does not get a good job it is not worth the expenses and this is a financial risk.

4. Reliability Risk:

One buy certain brands in the hope that they will be reliable but when they break
down very often they causes inconvenience and discomfort. This may not cause
financial loss because of warranty but is a great risk.

5. Social Risk:

If a car breaks down on its way or food is found bad at the time of serving it causes
embarrassment and results in social risk and it has to be considered while taking
purchase decision.

6. Ego and Psychological Risk:

The poor purchase may hurt the ego of buyer and he may be psychological depressed.

7. Durability Risk:

When consumer buys durables, he expects certain life from a product like car, TV,
computer, furniture, AC, generator etc.; he expects some trouble free service from it
but when it is not realized there is loss of funds, and inconvenience is caused. The
perception of risk depends upon product purchased and the psychology of the
purchaser. The risk perception differs from culture to culture, region to region and
country to country.

The consumer develops strategies to reduce risk before purchase through

following process:

1. Information Search:

To find out facts about a product or service. Now a days independent research surveys
are available which evaluate the product on the experience of consumers.

2. Brand Loyalty:
The consumer sticks to specific brands based on past experience.

3. Purchase of Reputed Brands:

The brand image is built overtime, based on experience of consumers. Philips, Tata’s,
Birlas, Hindustan Lever, Colgate, Nestle, Cadbury, Proctor & Gamble and many
others have built their reputation based on their performance. Therefore, when a
consumer decides to buy a well known brand he reduces risk of performance.

4. Buying From Reputable Stores:

Consumers presume that reputable retailers and stores sell only standard products to
maintain their reputation based on their performance. Therefore, when a consumer
buys a known brand he feels assured of the quality and risk of uncertainty is reduced.

5. Buying Expensive Products:

It is belief of many consumers that performance of costly products is better than

cheaper alternative product. Hence, some consumers who are not cost conscious buy
the costlier product. This strategy often works but on certain occasions the value
received is not commensurate with the price paid, or one pays for goodwill also.

6. Assurance from Suppliers:

In order to reduce perceived risk specially in case of unknown brands or unbranded

products consumer seeks assurance from seller like money back guarantee and
laboratory tests. The Consumer Protection Act also is a source of assurance that
consumer will not be exploited.

Evoked Set:

Out of available alternatives consumer short lists certain brands for detailed
consideration which is called evoked set which generally is of three to five brands.

In this group there are following possibilities:

1. Acceptable Brands

2. Unacceptable Brands

3. Indifferent Brands
4. Forgotten or Overlooked Brands.

The process of selection has been depicted in Figure 14.4.

Based on model of consumer decision making may be as explained in Figure 14.5. As

will be observed from the figure first need must be recognized then there should be
pre- purchase search as explained of various available alternatives, and evaluation of
short listed alternatives.
Output:

The final purchase decision is the output. In case of FMCG there are two types of
purchases (1) trial purchase (2) repeat purchases if satisfied by the experience. But
this process is not possible in case of durables but some suppliers allow trial run of
items like car, TV and if consumer feels satisfied he buys it.

Importance of Model:

The purchase decision model is very valuable for marketers. They first make efforts
that awareness is created about the product. Unless product is not known to the
prospective buyers it will not be considered for pre-purchase search. In the process of
selection there are known brands, unknown brands, acceptable brands and
unacceptable brands.
The marketer has to make various types of efforts. First that its brand is included
‘evoked’ set for further consideration. Second it should not be unacceptable brand so
that it is not rejected and finally its risks should be such that consumer finally decides
to purchase it i.e. its performance, reliability and durability should be as per
expectation of consumer.

The model also suggests that one can not take it for granted for all times that his brand
will always be purchased. The producer will always have to consider 4 P.s. (product,
promotion, price, place) and channels of marketing. He has to consider perceived
risks and satisfy the buyers that they are minimal in his products.

This whole marketing strategy with regard to product, innovation, price and
promotion depends upon consumer buying decision behaviour. The same strategy
does not work in all places, the strategy for Punjab and Bengal cannot be same, nor
there can be same strategy of promotion in different countries.