Social Capital and Decision Making

How Social Capital Affects Student’s Decisions about Attending University?

Introduction

The concept of social capital has gained prominence in the domain of social science. It refers to the potential of people to get benefits and address the challenges by associating in social networks. Past studies have mentioned different types of social capital, including bridging, bonding, and linking social capital. These relationship networks can perform best when they ensure diversity and promote pluralism.

This essay reflects on the various aspects of social capital. The author highlights its role in the decisions of the students regarding attending university. The paper analyses the influence of friends and families on a student’s decision to go to a university.

School and college students do not possess sufficient information to decide on the career choices, areas of interest, and relevant professions. Hence, their career choices may be significantly influenced by the feedback, recommendations, and suggestions they receive from their friends and families. This paper discusses this impact of social capital on university students.

Social Capital Discussion

The core emphasis of social capital is on intangible resources. These resources become an integral component in interpersonal relationships. The concept of social capital in the context of education is highlighted in various forms and dimensions. It is exhibited in the expectations of the parents, obligations and domestic responsibilities, and the social networks of academic institutions, family, and community.

Deepak, Wisner, and Benton (2016) assert that the aspects of social capital and engaged learning are crucial to the academic success of college students when they intend to advance to university level education. A broader understanding of these aspects will improve student outcomes at the level of higher education. Deepak, Wisner, and Benton (2016) categorised social capital into three types of linking, bonding, and bridging. The social capital is considered as linked when the relationships are built with those who are relatively powerful.

The social capital is regarded as bonded when the networks of families and friends are considered in anticipation of providing substantive motivational and emotional support. The social capital is termed as bridged when people from different social networks and backgrounds come forward and create a bridge between diverse social networks. This essay is focused on bonding social capital because it analyses the influence of friends and families on a student’s decision to go to a university.

Access to Resources

The outcomes in academic institutions are also influenced by social capital. For example, if a student belongs to a low-income family, the student will have fewer books and may lose out on educational visits. The student may not have access to the internet at home or access to an internet connection of low bandwidth. Demographic characteristics and the class background are significant predictors of educational ambitions (Behtoui, 2017, p. 487).

Students compare their standards of living and quality of life with that of the affluent people. They feel deprived and depressed and begin to believe that no matter how hard they work, they will never be able to match the academic excellence of higher-income class. This aspect has gained further significance in the current context due to the advancements in technology. Now the access to higher technology, tools, and gadgets make the learning experience far easier compared to the absence of these facilities.

If a student aims to enroll in an online university, all the academic achievements are based on online interactions, high-quality connection, and an enabling environment at home to pursue the studies. Teachers also facilitate students in top streams to acquire knowledge at higher levels.

Hence, the social class of a student is profoundly affected by the amount of wealth possessed by the student. When a student belongs to a low-income family, the student may get primary and secondary education of the same quality as that of other students.

It is because, in many countries, the provision of primary education is free for all and uniformity is also maintained in the curriculum taught in each school. However, when it comes to the institutions of higher education or universities, the class system plays a role in all aspects. There is an unequal allocation of educational benefits due to income, civic, and social engagement (Cincinnato, De Wever, Van Keer, & Valcke, 2016, p. 144).

Higher academic institutions demand expensive tuition fees for enrolling the students, and it creates a class system at this level. People belonging to the lower social classes either give up attending universities or seek financial assistance for meeting their educational expenses.

Convincing Power of Families and Friends

Families and friends have significant influences on the choices of students at this stage. If they are fully convinced with the significance of higher education, they will encourage their children to pursue higher studies by seeking financial assistance or using the financial resources from their savings. Parents will even work harder to enable their children to receive higher education.

Friends can also be good motivators if they realise the significance of higher education. The attainment of higher education is highly likely when new social resources are developed together with enduring mentoring relationships (Ashtiani & Feliciano, 2018, p. 439).

If parents and friends have a long-term orientation, they can convince the students that college-level education will not earn them good jobs with attractive compensation packages when they are competing with university graduates in professional life.

Butler and Muir (2017) describe that the theories of social capital have indicated that students make decisions about their academic endeavours based on complex family connections. Their education narratives are anchored in particular family associations through which they interpret their experience of education.

According to Butler and Muir (2017), social capital is a leading factor in facilitating productive activity. It is because the concept is rooted in social cohesion, trust, and reciprocity. Hence, parents and families should realise that higher levels of social capital are strongly correlated with a good quality of life and wellbeing. The thrust of social capital is on building values derived from social engagement and networking.

Butler and Muir (2017) highlight that social capital is manifested in various forms. In the context of education, the most influencing factor is that of bonding relationships, and if the families and friends do not realise its potential, it may become inherently disabling for the students. On the other hand, its judicious use can become a source of support and assistance in various circumstances.

Scholars have also broadened the role of friends in influencing the career decisions to a broader perspective of community-based education management (Edwards Jr, 2019, p. 18). It refers to the involvement of the whole community at various levels of academic endeavours.

According to Edwards Jr (2019), it means that families and friends should work with principals and teachers on the effectiveness of the curriculum, performance evaluation of teachers, and hiring of quality human resources. Edwards Jr (2019) argues that the administrators of the education system have not been able to attract a large pool of students due to the “absence of a focus on social relations and social capital” (p. 19).

The development initiatives cannot be successful merely on technical interventions without realising the significance of the social contexts in which those initiatives are introduced (Edwards Jr, 2019, p. 19). A focus on social capital will develop capacities for developing solutions to joint problems.

Merit-Based System

In a capitalist society, the merit-based system becomes a challenge for the people belonging to the lower-income group and lower social status. In this society, the gap always widens between the rich and the poor. The rich become richer, and the poor become poorer. It is because when the people compete on an equal opportunity basis, those belonging to the affluent class always win the race due to the accumulation of vast resources.

A student brought up in elite schools, colleges, and universities will find it a lot easier to beat a candidate on the job who belongs to a lower social class. It is because the student belonging to a lower level never got the same opportunity and facilities to polish and improve the skill set.

Hence, that student would have no choice but to be complacent with a lower level of education and mediocre jobs. According to the findings of Zhang and Lu (2019), depressive symptoms are found higher among students belonging to low family social capital when they cannot attain higher education.

The marginalisation of students belonging to low social capital cannot be overlooked. The anger and frustration may be deviated and ventilated through other channels. All the stakeholders of the educational system will need to play their role to reduce the class system at the level of higher education.

Money is not the solution to this issue because a high cost is associated with higher education, and various universities operate in a country. The problem can only be addressed through the development of social networks and encouraging the students to come out of the vicious circle. It is not an issue limited to the student. The decisions will define the fate of future generations as well.

Expensive Education

One of the solutions to this issue could be to ensure free education at the level of universities as well. It will reduce the effect of social capital and students will be able to continue their studies without any worries regarding the financial aspect. However, the governments across the world are even struggling to stay with their promises of free primary and secondary education.

Higher education is an advanced area of study, and the provision of funding to all institutions at the state level will never be possible. Even the philanthropic organisations and foundations either build their universities or fund two or three institutions at maximum.

Social Capital and Decision Making
Social Capital and Decision Making

Job versus Entrepreneurship

Another factor that influences the decision of the student regarding attending university is whether the students would like to become entrepreneurs or they dream an excellent job after the completion of their studies. Many students believe that university education is beneficial only if they want to apply for a job.

Some organisations even announce promotions and benefits when an employed person completes a university education on-the-job. However, when individuals, based on the influence of family and friends, aim to establish their own business, they underestimate the significance of higher education. The individual believes that success in a business is more dependent on the experience and hard work than formal education.

Also, the families encourage the students to become the earning members quickly instead of consuming four to five more years in university education. A robust social factor can promote the students to make active contributions in their domains even as scholars and the research community (Tyndall, Forbes III, Avery, & Powell, 2019, p. 300).

There are severe restrictions on child labour in many countries. These restrictions become effective during primary and secondary education. However, by the time, the student becomes eligible for university education, these regulations also become ineffective. It is because, by that time, the student had reached the age of eighteen years.

Academic Institutions

The academic institutions of higher education are also part of this social capital, and they also play their role in demotivating students towards higher education. The top-rated institutions are limited in their capacities to accommodate a large population of college graduates.

When students from lower social class do not get admission in these institutions, they prefer not to attend the university instead of compromising on the quality of education. Hence, poverty becomes a barrier to the social capital formation (Harrison, Montgomery, & Jeanty, 2019, p. 183).

The commercial aspects have also dominated many academic institutions, and there is a lesser level of focus on research and development. Universities are premises where the students challenge preconceived notions and bring out something creative and innovative. They contribute to the existing academic literature and fill the gaps in the literature.

However, the mechanical style of many universities is dominated by traditional classroom instructions and students receive the degrees without having a firm grip of the knowledge and skills. Their gaps in knowledge become eminent when they have to execute tasks in a professional environment.

Economic Resilience

Parents and friends should realise their role in the successful professional life of students. The students cannot be successful in university life if they belong to a lower social class, and parents and friends do not motivate them. A long-term orientation by parents and friends will consider university education as a good investment that will open the doors of a successful career for the students.

The student will also participate in university life with full zeal because the family and friends will support the student. The short-term pursuit of profitability and financial gains should not be preferred over long-term economic resilience (Sabatino, 2019, p. 355). There will be no upliftment and development in the next generation. The growth of the generation is possible only if parents and friends realise the significance of higher education and become the full supporters of students in attending universities.

Personal Values

Fearon, Nachmias, McLaughlin, and Jackson (2018) highlight the role of personal values in the career decidedness of students in higher education. The model presented in the study reflected on how social capital mediates the career decision-making process.

The independent variables in the study included access to resources, student’s social capital, social skills, and personal skills. The study mentioned that ultimately, students are responsible for their career decisions and the role of families and friends is that of a facilitator. They can provide an enabling environment to accept skills development opportunities and nurture personal growth.

Social capital has a leading role in facilitating action and providing potential energy (Tonkaboni, Yousefy, & Keshtiaray, 2013, p. 41). At the levels of social structure, it can be utilised in all ways, including micro, intermediate, and macro level. In this regard, two significant aspects of social capital are networking opportunities and latent resources.

Investing in social networks produces declaration and instrumental actions. From the perspective of declaration action, social capital is beneficial for defending against the possible loss and consolidating resources. From the standpoint of instrumental action, social capital is significant in establishing reputation, power, and wealth (Tonkaboni, Yousefy, & Keshtiaray, 2013, p. 41). Tonkaboni, Yousefy, and Keshtiaray (2013) emphasised that social capital should be evaluated through its three components of social integration, social participation, and social confidence.

Conclusion

The social capital makes a significant influence on the education sector through the influences of families and friends. For the people belonging to higher social class, it is easier to acquire quality education in top universities of the world. However, financial constraints become a barrier for students of lower social level.

If parents and friends encourage students in this phase of life, they can become equally-competent university graduates and become successful in their professional and personal lives. Academic institutions also have the responsibility of realising the significance of social capital.

However, in most of the cases, the students are at the receiving end. Hence, families and friends should take the lead and play a pivotal role in making the students active contributors to development and prosperity in society.

References

Ashtiani, M. and Feliciano, C., 2018. Access and mobilization: How social capital relates to low-income youth’s postsecondary educational (PSE) attainment. Youth & Society, 50(4), pp.439-461.

Behtoui, A., 2017. Social capital and the educational expectations of young people. European Educational Research Journal, 16(4), pp.487-503.

Butler, R. and Muir, K., 2017. Young people’s education biographies: Family relationships, social capital and belonging. Journal of Youth Studies, 20(3), pp.316-331.

Cincinnato, S., De Wever, B., Van Keer, H. and Valcke, M., 2016. The influence of social background on participation in adult education: Applying the cultural capital framework. Adult Education Quarterly, 66(2), pp.143-168.

Deepak, A.C., Wisner, B.L. and Benton, A.D., 2016. Intersections between technology, engaged learning, and social capital in social work education. Social Work Education, 35(3), pp.310-322.

Edwards Jr, D.B., 2019. Shifting the perspective on community-based management of education: From systems theory to social capital and community empowerment. International Journal of Educational Development, 64(1), pp.17-26.

Fearon, C., Nachmias, S., McLaughlin, H. and Jackson, S., 2018. Personal values, social capital, and higher education student career decidedness: A new ‘protean’-informed model. Studies in Higher Education, 43(2), pp.269-291.

Harrison, J.L., Montgomery, C.A. and Jeanty, P.W., 2019. A spatial, simultaneous model of social capital and poverty. Journal of Behavioral and Experimental Economics, 78(3), pp.183-192.

Sabatino, M., 2019. Economic resilience and social capital of the Italian region. International Review of Economics & Finance, 61(2), pp.355-367.

Tonkaboni, F., Yousefy, A. and Keshtiaray, N., 2013. Description and recognition of the concept of social capital in higher education system. International Education Studies, 6(9), pp.40-50.

Tyndall, D.E., Forbes III, T.H., Avery, J.J. and Powell, S.B., 2019. Fostering scholarship in doctoral education: Using a social capital framework to support PhD student writing groups. Journal of Professional Nursing, 35(2), pp.300-304.

Zhang, J. and Lu, N., 2019. Community-based cognitive social capital and depressive symptoms among older adults in urban China: The moderating role of family social capital. The International Journal of Aging and Human Development, 1(2), pp.1-20.

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Social Media and Consumer Decision Making

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Consumer Behavior Decision Making L’Oreal

Consumer behavior is an important management field, the study and application of which can provide a lot of insight and value to the marketers. This research paper is based mostly on the existing theories and models of consumer behavior. The first part looks for external factors influencing consuming behavior at various stages and the second applies theories to a well known business organization, L’Oreal.

Consumer Behavior

Hawkins (2008) says that the consumer decision making process is often the result of a single problem however, at other times consumption decision is based on a number of factors. The example provided by Hawkins (2008) to explain the difference actually helps the reader in better analyzing the types of consumption requirement. Running low on gasoline while driving leads to a single factor consumption decision whereas the realization of an aging automobile, growing feeling of inadequacy or low self esteem lead to a multi factor consumption decision regarding a commodity or a service.

For the marketers of an organization, it is important to take into consideration both the types of consumption such that the overall sales of that organization are increased. Consumers are the end point of the supply chain processes. They actually are the magnetic force for all kinds of manufacturing, production and retailing processes that are taking place in a market or in an industry. The stronger the magnetic force in fact, the better will be the overall processes of production, manufacturing and retailing. It is therefore important for the organizations to capture as much of that attraction of the customers as possible. One simple reason for that is that customers are the ones that provide revenue to the business. An interesting quote by Jeff Bezoz, the CEO of Amazon.com says that it is actually the customers of the organization that give the business the money to operate and not the competitors of the organization and thus, all the strategies that the organization makes to improve the business performance (or market capitalization) should be oriented towards the customers (Stockport, 2009).

This idea then forms the core of the field of consumer behavior. Consumer behavior, initially stemming out of the study of micro economics has actually gotten extensive and intensive enough to be termed as a completely independent study of management sciences and one that can have serious policy implications for a business entity.

Consumer behavior holds that the purchasing decision of the consumer can actually be analyzed through various models and theories and using those findings, a business can orient its market plan to gain competitive advantage in the market. A number of external and internal factors become a part of understanding how and why consumers making purchasing decision, using decisions and disposing off decisions and how preferences and tastes as well as norms, cultures, peer pressures and traditions become a part of this decision making process (Lamb, Hair, McDaniel, 2011).

Since it has now been established that a number of internal and external factors play a role in influencing the consumers in their consuming decision, the breakdown of each factor is possible. As far as a business organization and more precisely the strategic managers or the marketers of the organization are concerned, external factors are the ones which they have the power over and thus they can influence the attraction felt by consumers for the product being marketed. However, before the marketing managers can actually pin point the external factors and manipulate them, each stage of the decision making process of the consumers needs to be analyzed.

Analysis of how external variables are used by marketers to influence consumer decision making at the various stages of the consumer decision making model. Illustrations through examples

Nominal Decision Making Process

Hawkins (2008, p. 561) identifies the nominal decision making process and defines it in the following words,

“Nominal decision making, sometimes referred to as habitual decision making, in effect involves no decision per se….A completely nominal decision does not even include consideration of the “do not purchase” alternative. For example you might notice that you are nearly out of Aim toothpaste and resolve to purchase some the next time you are at the store. You don’t even consider not replacing the toothpaste or purchasing another brand.”

According to Hawkins (2008) then a nominal decision making process can be broken down further into brand loyal decisions and repeat decisions.

For the marketers, development of brand loyalty is another arena that is receiving significant attention mostly because of its importance that has been highlighted through the theories of consumer behavior. The more the consumer feels loyal to the brands, the lesser he or she will actually consider buying another brand and thus the number of secure sales for the organization will increase and in the longer run, the provision of stability of revenue for the organization will also be enhanced.

The example for the nominal decision making process has already been highlighted by reviewing Hawkins (2008) however to provide another example is the purchase of soaps, bottled milk, tea brand, coffee brand or sanitary pads. Mostly, for all of these products, the consumer mechanically throw these products into the shopping cart without even considering that just right to the brand that they picked lies another, probably better brand. Development of this behaviour in the consumers requires effort and strategy from the marketing manager of the business organization.

Five Step Decision Making Model

Next is the five step decision making process as studied by Lamb, Hair and McDaniel (2011). In this model, the first step is the recognition of need of a product or service by the consumers. The second is the information search, third the evaluation of alternatives and fourth the purchase of the commodity or service. Finally, the fifth step is the post purchase behaviour. In regards to the model however, the following has been said (Lamb, Hair and McDaniel, 2011, p. 189),

“The five steps represent a general process that can be used as a guide for studying how consumers make decision. It is important to note though that consumers’ decisions do not always proceed in order through all of these steps. In fact, the consumer may end that process at any time or may not even make a purchase.”

However, this model does provide important steps that can be used by the marketers to create external influence on the consuming behaviours of the customers. Baker (2003) says that these five stages together are affected by a number of external and internal factors. These factors include the cultural, social, individual and psychological factors and are actually applicable to all the stages of the consumer decision making process. Therefore, if the customers are to use factors to influence the consumer decision making process, these factors are to be manipulated. For the purpose of this section of the research report, only external factors will be analyzed for each stage of consumption of the goods and services.

The first step is the recognition of needs. This is actually the first and the most important step that the marketers can use to attract the customers and thus gain competitive advantage and even first movers advantage in the market. This is possible by making the customers realize the need for the product that the firm is offering. Hawkins (2008, p. 565) says that,

“Marketers often attempt to cause consumers to recognize a potential problem for which the marketer has a solution…this sometimes involves making consumers aware of problems well before they arise.”

The important word here is “potential”. The usual way through which the problem solving approach goes is to at first recognize the problem and then solve it. Providing external stimulus on the need recognition stage of the decision making process, marketers are actually making the customers create a problem in their head that they did not realize existed before. Obviously this can be both real and imaginary but there is no necessity that the consumer knew of the solution to the problem before. For example, the invention of diapers stimulated the need recognition stage of the decision making process. Before that for centuries, mothers and maids were using cloth and plastic panties for their babies and everything seemed to go fine. With the advent of diapers however, it became almost a necessity. Something without which bearing a child seemed like a serious problem.

Similarly, the marketers can influence the information search stage of the consumer decision making process by providing to the consumers the necessary information through various media. Nowadays, television advertisement, billboards and internet are the favorite sources of providing the consumers with the information about the product and how that product is the one that the consumers require in solving the problem. For example when proctor and gamble came up with the diapers, pampers, they needed to provide the useful information to the consumers about the product. So that the customers who have already realized this problem and were looking for a solution find it in the shape of pampers. This then can require free samples and other promotion techniques as well. As of today however, the techniques that remain dominant have been mentioned.

The marketers can influence the third step that is of alternative evaluation by allowing the customer, through efficient marketing strategies to realize that the product the firm is offering is the best one for the consumer.  The external factor used here can be the help of celebrities to promote a product. Knowing that a specific product works better than anything else for something well known and looked up to can actually lead the consumers to be inclined more towards the purchase of that product.

On the fourth stage of the consumer decision making model, prices are the factors that need to be considered and used by the marketers. The consumers should know that the price they are paying for the product is actually worth it. Here, the factor and consciousness of social class can play an important role. The effect of social class on consumer behavior, apart from the direct relationship of income levels and value of consumption, there is also a direct relationship till the upper class between the realization of social class and the desire to mobilize in the social class hierarchy and the value of consumption (Loudon, 2007). It has been noted that the upper, upper middle and the middle class seriously dreams of being recognized as the elite (how o not really care about the prices but about the quality) make more expensive purchases of the products or services to reinforce their social class image in the society.

Select a company or not-for-profit organisation that you are familiar with and critically evaluate how a specific consumer behavioral theory or model can aid in understanding consumers’ actions. Demonstrate how this then guides the practical implementation of marketing strategy in your chosen organisation.

The Organization

The business entity selected for the purpose this section of the report is L’Oreal Paris. This is the largest beauty and cosmetics brand in the world. In 2009 L’Oreal completed its hundred years and recognizes its moves in the business world as that of being adventurous. L’Oreal (2011) notes that above and beyond that financial success that the organization has achieved, the journey of L’Oreal has been marked by a quest for innovation, a quest for excellence, a question for the purpose of actually existing in the market and finally a quest for diversity in regards to the range of cultures, preferences and tastes of women around the globe.

Consumer Behavior Decision Making L’Oreal
Consumer Behavior Decision Making L’Oreal

This organization has actually celebrated beauty around the globe. L’Oreal has a huge international presence and operates in five continents of the worlds excluding Antarctica and Australia from the list. By the global 100, this beauty brand was actually ranked amongst the world’s 100 most sustainable business organizations. Moreover, this organization in 2011 has been presented with the best financial performance by the Boursoscan (L’Oreal, 2011).

The overview of the organization notes that for a century the organization has been pushing back the boundaries of science to invest and meet the aspirations of millions of women and men (L’Oreal, 2011). L’Oreal seeks to provide the best cosmetics to the world in terms of quality, safety and efficacy. In 2010, the business had consolidated sales figure of 195 billion Euros. Currently, the organization is managing 23 global brands in 130 countries of the world and registered 612 patents in the year 2010 (L’Oreal, 2011).

Theory of Consumer Behavior

Behavioral School of Thought: Classical Conditioning

In regards to the core behavioral theories, Schiffman (2008) notes that there are a number of routes through which the conditioning of consumers to buy a particular product can be done. The first route is the classical conditioning in which the consumer links a certain response to a product. For example, in regards to L’Oreal, classical condition will be that using the Voluminous Mascara introduced by the organization, the eyelashes will actually look darker and prettier and the result will be similar to what Ashwariya Rai puts on her eyes. The conditioning stimulus here will be the darker, more volume eyelashes like the ones that Ashwariya Rai appears with. Through the advertisement then the unconditioned response of the consumer who needs to buy mascara turns into a conditioned one.

Behavioral School of Thought: Cognitive Associative Learning

Next, Schiffman (2008) studies the cognitive associative learning behavior. According to this view, the relationship or (congruity) between the conditioned stimulus and the unconditioned stimulus influences the expectations which in turn influences the behavior of the being. This theory believes that the actions that occur after certain stimuli have been provided are in fact learned and occur because of the increase in knowledge. For example in the example above, the purchase of mascara would occur because knowledge about the qualities of the product has been gained. Unlike the cognitive associative behavior however, the classical conditioning believes that the reaction that occurs is actually reflex.

Economic Theory of Consumer Behavior

Apart from these theories, one consumer behavior theory that actually stems out economics more than psychology is the theory of consumer behavior. Irwin (2005) says that the consumers according to the model provided in this theory consumes at a point where there occurs an intersection between the consumer indifference curve (the choice curve of the customer where combinations of consuming two alternative goods achieve the same level of utility or satisfaction to the customer) and the budget constraint of the individual (as understood mostly by the current income levels of the person or the saved up income from a previous period).

This model assumes that the consumers are rational individuals who are responsive to a price change of products and who also have complete information about the product and the alternatives. Also it is assumed that the individual under question is subject to a budget constraint and that he or she has to manage more than one thing in a given period of time speaking financially.

Attitudes in Consumer Behavior

Perner (2011) however studies the theory of consumer behavior which says that the problem solving approaches of the consumers are actually internal (made up of the memory and thinking process of the individuals) and external (made up of the word of mouth, the media, the store visits and the trials amongst others). In this theory then, the evaluating behavior of the individuals are made up either compensatory, non compensatory, hybrid or abandoned strategy. The first one is the decision based on overall value of alternatives. The non compensatory evaluation requires that the consuming decision meets at least one important criterion and the hybrid is a combination of compensatory and non compensatory evaluation types. Finally, the abandoned strategy is when the consumer finds the initial criteria unrealistic and proceeds to a less desirable solution to the problem. Next, Perner (2011) notes that the consuming behavior of an individual is seriously affected by the attitudes of that individual; and that in turn attitudes are affected by the intentions, the beliefs and the feelings about a particular brand.

 As far as L’Oreal is concerned, consumer behavior can be understood critically through these four theories and the findings can be further used to design a strategy to expand the consumer market and the competitive advantage of the market.

Recommended Marketing Strategies

Starting with the attitudes of the consumers, L’Oreal can be added by understanding what beliefs individuals have about the products and services that the brand itself and that the competitors of the brand provide. This can be measured and analyzed through the attitude measure developed by Perner (2011). Next, the feelings of the consumers can be understood through this attitude model. For example, a fan of Ashwariya Rai, or Penelope Cruz (the brand ambassadors of L’Oreal) will feel a push for consuming the product after aggressively understanding how they feel for the product. Also, being there for a century, this brand is also a name through the generations. Understanding those feelings of the consumers will help steer the marketing plan of the organization towards a greater organizational performance overall.

Next, the theory of consumer behavior includes the importance of prices of the product. This is actually one of the core consumer behavior theories and is the most detail about the behaviors of the individuals. In this regard the organization can use the theory to understand what effect a price change of the products and services has on the sales of the organization and the demand of the consumers. Make up, after a certain limit is usually a luxury for individuals and L’Oreal is an expensive brand.

To keep up its market share and to not lose to organizations which are charging a lower price for similar products through the substitution and the income effect it is important for the management of the organization to carefully consider the underpinnings of the theory of consumer behavior. For this purpose, if the price of the good is actually not that far away from the actual investment put into the product in terms of research and development and manufacturing, the organization can actually use the coin of high quality. The perception of consumer about the quality of the product is a vital asset when an organization is designing its price and marketing policies. The better the consumer perceive the quality of a product to be, the more he or she will be willing to spare for that product because they will know that the money is being well spent and that there will be no hazardous consequences of using a particular product.

Conclusion

Nelson (1970) studies that the consumers are continuously busy in the choice making between different products however, the consequences of these choices are dimly known by them. One of the reasons is that they lack full knowledge about the price and quality of the product. The marketers of a business organization then can utilize the consuming behavior and the attitudes of the consumers for the purpose of attracting the maximum share of revenue for the organization.

This research paper studied how the marketers can actually use external factors including the social class, peer pressure, celebrity following and fashion trends to influence the consuming behavior of the consumers.

The second part of the research report analyzed the various theories of consumer behavior. Those theories then were in critically used to apply for the case of L’Oreal Paris, one of the largest multinationals in the world. Dholakia et al (2010) says that in the case of multimedia and multi channel organization like L’Oreal, the analysis of consumer behavior is different than the usual analysis. Finally, for the applied consumer behavior theories, a number of marketing strategies were recommended for L’Oreal.

References

Baker, D. (2003) Consumer Decision Making. 4th Ed. USA: South Western.

Dholakia, H. et al. (2010) Consumer Behavior in a Multichannel, Multimedia Retailing Environment. Journal of Interactive Marketing, Volume 24 (2), Pages 86-95.  

Hawkins (2008) Consumer Behavior. 6th Ed. India: Tata McGraw Hill

Irwin (2005) Theory of Consumer Behavior. USA: McGraw Hill.

Lamb, C., Hair, J. and McDaniel C. (2011) Essential of Marketing. 7th Ed. USA: South Western.

L’Oreal. (2018). L’Oreal Website

Nelson, P. (1970) Information and Consumer Behavior. Journal of Political Economy, Vol. 78 (2), pp. 311-329

Prener, L. (2011) The consumer Behavior: The psychology of marketing.

Schiffman, L and Kanuk, L. (2007) Consumer Behavior. 9th Ed. India: Pearson Education Inc

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Consumer Purchasing Behaviour Social Media

The Impact of Social Media in Influencing Consumer Purchasing Behaviour: A Study of Clothing Retailers

Title: Consumer Purchasing Behaviour and Social Media Influence. The impact of social media on the purchasing behaviour is an area of interest that has gained much interest and study in the 21st century. This research focuses in the ways in which social media has had an effect on the purchasing behaviour and most of the interest in the clothing and retail industry. The first part of the research will take a look at the various ways in which the social media influence has impacted on the purchasing behaviour. The different stages of purchase will be analysed in the background study, both before purchase, during purchase and after purchase behaviour and the influence of the different forms of social media on the same.

The data collection method that has been used during this research is the analytical study design. The researcher distributed questionnaires to a study sampled population, which consisted of university students at London South Bank University since they are considered to be the most consumers of social media. The results that were obtained indicted that social media has a very big influence on both the three stages of the purchase process. The recommendation, review and consumer motivation among others are the motivating factors that make the use of social media have a big influence on the purchasing behaviour of consumers.

Consumer Purchasing Behaviour Dissertation
Consumer Purchasing Behaviour Dissertation

This research will therefore have a big influence on the marketing strategy that will be used by future clothe retailers. It also gives an insight on the influence of technology and social media to be specific on the purchase behaviour of the modernised internet users. Therefore, more research should be done by clothe retailers on the best way to promote their businesses through social media.

Dissertation objectives

  • To determine the role of social media in influencing the pre-purchase phase of the consumer purchasing Behaviour lifecycle
  • To determine the role of social media in influencing the purchase phase of the consumer purchasing Behaviour lifecycle
  • To determine the role of social media in influencing the post-purchase phase of the consumer purchasing Behaviour lifecycle

Dissertation Contents

1 – Introduction
Background of the study
Statement of research
Study objectives
General objective
Specific objectives
Research questions
Significance of the study
The scope of the study
The study limitations
Research structure

2 – Literature Review
Social media
Social media marketing
Consumer purchasing behaviour
The role of social media in influencing the pre-purchase phase
The role of social media in influencing the purchase phase
The role of social media in influencing the post-purchase phase

3 – Research Methodology
Research Design
Population
Sampling Design
Sampling Frame
Sampling Technique
Data Collection Methods
Questionnaires
Research procedures
Data Analysis Methods
Limitations
Ethical Considerations

4 – Results and Findings
Description of the sample
Response Rate
Respondents’ gender
Social Media Sites
Time Spent on Social Media Sites
The role of social media on making purchase judgements
Frequency of Influence of Social media on purchase decisions in clothing Retail Industry
Social Media Influences on the Pre- purchase Stage Analysis in Clothing Retail Industry
Problem recognition
Information search
Evaluation of alternatives
Social Media Influence on the Purchase Stage Analysis in Clothing Retail Industry
Consumer Attitude in Purchase Stage
Consumer Motivation in Purchase Stage
Product Perception in Purchase Stage
Social Media Influence on the Post-Purchase Stage Analysis in Clothing Retail Industry
Feedback
Satisfaction and Dissatisfaction
Product Performance

5 – Discussion, Conclusions and Recommendations
Discussion
The role of social media in influencing consumer purchasing behaviour
Social media Influences on the Pre-purchase Stage
Social media Influences on the Purchase Stage
Social media Influences on the Post-Purchase Stage
Conclusion
The role of social media in influencing consumer purchasing behaviour in the clothing and retail industry
Social media Influences on the Pre-purchase Stage
Social media Influences on the purchase Stage
Social media Influences on the Post- Purchase Stage
Recommendations
Recommendations for further research

References

Appendix
Questionnaire

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Luxury Goods Consumer Purchasing Behaviour

Evolution in Consumer Experience and Purchasing Behaviour of Luxury Goods

Title: Consumer Experience and Purchasing Behaviour of Luxury Goods. This dissertation aims to determine whether behaviour changes in consumers have been affecting sales of luxury branded accessories over recent years. The research is significant to the luxury products particularly the sale of accessories within the fashion industry. The fashion and design industry stakeholders range from store-owners to merchandisers and business executives whose decisions reflect on the customer’s reactions and the behaviours toward product thus affecting sales of that particular product. The purpose of conducting this research is to find out whether the luxury products’ perception has depreciated over time due to impacts brought about by changes in customers’ behaviours. The research also aimed at determining whether luxury accessories have become readily available in the market and the impacts of the associated factors which make the brands less luxurious.

The consumer behaviour is basically affected by factors such as change in mode of communication, social networking, globalization, mass consumption, harmonization of the culture, e-tail, celebrity branding and the 2008 economic recession. The researcher has collected data from a wide range of literature such as academic sources and journals to help in finding out the main changes existing in consumers’ behaviour. These academic materials represent the theoretical section of this research. The research conducted involved carrying out interviews which were compiled per oral and written format. This were then sent to luxury retailers as a section of case study and later analyzed. The author finally managed to compare and contrast the obtained results on the theoretical analysis in parallel to the company case. The results were compared with a report conducted on luxury spending habits which have been published by the American Express representing part of this research discussion.

Luxury Goods Brands Dissertation
Luxury Goods Brands Dissertation

Dissertation objectives

  • To determine the consumer’s experience and purchase behaviour changes in the recent years within the luxury market
  • To find out whether the consumers’ behaviour changes phenomenon depreciates the luxury value of luxury brands
  • To find out whether the consumer experience and purchasing behaviour changes influenced consumption and consumerization of the luxury brands leading to the wider accessibility of luxury in the fashion industry

Dissertation Contents

1 – Introduction
Background of the study
The aim of the study
Objectives of the research
General objective
Specific objectives
Research questions
Research hypothesis
Research methodology
Expected outcomes
Problems and limitations
Theoretical framework

2 – Literature Review
Background information
The history and evaluation of luxury goods branding in high fashion
The key concepts
Accessories
The relationship between the price and quality in the luxury market
Globalization and changes in the luxury goods market communication
Social networking
Blogs
Mass consumption
The global marketplaces, global consumer culture and harmonization
E-tail
Celebrity branding and endorsement
Celebrities as a reference group
Celebrities as style icons
From the point of view of a fashion luxury brand
From the point of view of the luxury goods market as a whole
Future of the luxury products and market after the recession

3 – Research Methodology
Research Design
Data Collection Methods
Compiling Interviews
Sampling Frame
Piloting
Company Cases
ASOS
Helsinki 10
FINSK
Data Analysis
Limitations

4 – Data Findings and Analysis
Results
Discussion

5 – Conclusion
Recommendation
Scope for Future

References

Appendix
Questionnaires

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Family Purchasing Behaviour

The Effects of Gender on Family Purchasing Behaviour

Family Purchasing Behaviour – There is a great need to conduct research on purchase behaviour and patterns of families. Democratization of the society has been on the rise, and this has affected the way gender is viewed by both the members of a family as well as the entire society. Due to the changes caused by the democratization of the society, the traditional family model which involved a define hierarchical organization and where role played by each member of the family were clearly defined, has been reduced into a new family model, with less hierarchical organization and that includes new family patterns. Some of the modern family models include single parents, multi-nuclear families, cohabiting couples, homosexual couples among others. In this dissertation, there will be extensive use of the terms such as ‘couple’, ‘husband/man’, as well as ‘wife/woman. This is mainly because these are the key elements of a family.

Family Purchasing Behaviour
Family Purchasing Behaviour

Family purchasing behavior is a complex unlike individual purchasing behavior. The process involves complex stages right from making the decision to the real purchasing. There are several factors that affect the family purchasing behavior. This study will investigate the effects that gender has on the family purchasing behavior. It is of great important to understand how gender affects the family purchasing decisions. This understanding will help in predicting the purchasing pattern in spouses. This study is therefore very important to the firms as well as institutions of higher learning. By understanding the family purchasing patterns, the firms will be able to adopt marketing strategies that will help in achieving increased sales. The institutions of higher learning will benefit from this study since by understanding the family purchasing patterns; they will adopt the best strategies in training marketers. This dissertation will investigate the effect of gender on family purchasing behaviour.

The dissertation will use a quantitative research design and an open-ended and closed questionnaire for data collection. The sample will be made of 150 couples, making it 300 individuals from London. Data analysis will be done by the use of SPSS. The findings of the study will be useful to both the firms as well as the institutions of higher learning. This dissertation aims at investigating the effect of gender on family purchasing behavior.

When making the purchase decisions for the family, both the husband and the wife are likely to disagree due to the diversity in their tastes and preference and the fact that they both want their viewpoints considered in the purchase decision. Many academics suggest that the power of the spouse in the relationship has a greater impact on the decision making. For instance, if the wife believes that her husband has more power over her, she will be very comfortable with her husband making most of the decisions. In the other hand, there are instances where the wife will influence the purchase decision of particular products. For instance food stuffs. This is because; women are taken to be very conversant with household goods.

Dissertation Objectives

  • Investigating the way through which couples make purchase decisions
  • Investigate the conflict between couples when making purchase decisions
  • Investigate the influencing tactics in couples while making purchase decisions

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