Individual Decision Making Affects Consumer Behaviour

Chapter 9 on individual marketing decisions discusses brand loyalty and inertia. Brand loyalty exists when there is repeat-purchasing decisions made to continue buying the same brand. Moreover, the concept of inertia occurs when a brand is bought out of habit. The purchasing decision of consumers differs for these two theories for different products.

Thus, an example of brand loyalty occurs when someone purchases a Lexus as a vehicle. A company such as Lexus uses customer service as a competitive advantage over their competition. Therefore, customers may be more likely to purchase another Lexus because they can expect to receive the same service as before.

Furthermore, an example of inertia is buying the same peanut butter every time it runs out at home. A company such as craft makes peanut butter that is enclosed with a green label. Therefore, customers may develop a habit of just looking for the green color on the shelf.

Thank you,

Tarah Whissell

Picture References:

http://www.forbes.com/companies/lexus/

http://www.kraftcanada.com/brands/kraft-peanut-butter/products