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Understanding Consumption Decision Making Process Using Consumer Choice Theory Assessment Answer

NEW Assessment details:

Research Topic 1. 

Ma Nuo, a 22 year old model from Beijing, said:

I’d rather cry in a BMW than laugh on a bicycle.

The truth is that Ma is far from alone in her material requirements for marriage. Millions of Chinese women, and their parents, are like her.

You are hired by a marketing agency to write a report on what motivates people to consume (impulsive and compulsive consumption). You discover that the consumer choice theory has something to say about our consumption behaviours. Discuss the contribution that the consumer choice theory makes to the understanding of our consumption decision-making process. Your analysis should not exceed 3500 words.


Research Proposal


Ma Nuo, a 22 year old model from Beijing, said on a TV show: ‘I’d rather cry in a BMW than laugh on a bicycle.’ The statement indicates love for material things. While bicycle represents basic needs and happiness, BMW represents material satisfaction. 

The money available with each individual is limited and hence, dilemma facing them is how best to spend the limited funds. The objective is to get maximum satisfaction and enjoyment from the spent funds. Hence, two active factors include utility and budget constraint. This is also known as Consumer Choice Theory.

Impulsive buying refers to unplanned purchases made due to sudden, powerful urge while compulsive buying refers to a disorder where there is an uncontrollable urge to buy. Typically, impulsive buying is triggered by mood, personality characteristics, need or self-control while compulsive buying occurs due to negative feelings and tension which is released only by buying and hence, is an addiction (Beatty & Ferrell, 1998).

Some research studies also indicate that after satisfying basic needs, an individual prefers to spend on experiential buying rather than material buying. Material buying refers to buying tangible things kept in possession whereas experiential buying refers to events or series of events such as, travel, movie etc. (Boven & Gilovich, 2003).

It is well known that marketers and retailers exploit these urges and preferences of consumers so as to increase their revenue. For example, small priced items are typically displayed near check-out counter such that a person will buy on impulse even if there is no need for it. The advertising and marketing is also targeted to trigger such impulsive behaviour in consumers in a subtle way. Additionally, innovations such as, credit cards, online shopping, 24-hour availability, etc. contribute to the impulse buying (Pradhan, 2016). Some factors have particular impact on buying behaviour, such as, time availability, gender, mood, materialism, age, culture, etc. (Mai, 2003). 

Research Approach

The research study will sue both secondary data and primary data. Secondary data will mainly include published literature review related to the topic. Primary data will mainly include a structured questionnaire targeted at respondents in Australia. The questionnaire will have a mix of closed-ended questions, open-ended questions, multiple choice questions etc. The questionnaire will be circulated through various means such as, email, face to face etc. A sample size of 50 is assumed for the research study. The analysis will be done using visual techniques, statistical software etc.

The questionnaire will aim to understand the consumer behaviour with respect to impulse buying, experiential buying, material buying etc. and the factors that impact the same.

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