explain why consumers tend to apply more rational approach in making consumption decisions involving expensive products or services.

Using the theories and concepts of consumer behavior covered in AMB200 course, explain why consumers tend to apply more rational approach in making consumption decisions involving expensive products or services. Demonstrate adequate understanding of the theories covered in class and integrate relevant literature resources. Use 2 to 3 literature sources.

Introduction

Consumer behavior is a complex phenomenon influenced by various factors, including psychological, social, and cultural aspects. The rational approach in consumer decision making plays a crucial role, especially when it comes to expensive products or services. This paper explores the reasons behind consumers’ tendency to apply a more rational approach in such consumption decisions, drawing on theories and concepts from the AMB200 course and relevant literature.

Theoretical Framework

Consumer Decision-Making Process

The consumer decision-making process involves several stages, including problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation (Solomon et al., 2021). For expensive products or services, consumers often engage in extensive information search and evaluation to minimize risk.

Theory of Planned Behavior (TPB)

Ajzen’s Theory of Planned Behavior (Ajzen, 1991) suggests that consumer behavior is influenced by attitudes, subjective norms, and perceived behavioral control. When considering expensive purchases, consumers are more likely to evaluate these factors carefully to ensure that their intentions align with their actions.

Risk Perception

Consumers perceive greater risk when purchasing expensive items (Kapferer & Laurent, 2016). This heightened risk perception prompts consumers to employ a more rational approach to reduce uncertainty.

Factors Influencing Rational Approach

Financial Investment

Expensive products or services typically require a significant financial investment, making consumers more cautious about their choices. This financial commitment motivates them to carefully assess their options.

Quality and Durability

Consumers associate expensive products with higher quality and durability (Huang & Sarigöllü, 2012). To ensure they get value for their money, consumers engage in rational decision-making by evaluating product specifications and reviews.

Social Influence

Social pressure and the fear of judgment can also lead consumers to adopt a rational approach when making expensive purchases. They seek assurance that their choices align with societal norms and expectations.

Conclusion

Consumers tend to apply a more rational approach when making consumption decisions involving expensive products or services due to the significant financial investment, the perceived risk, and the desire for quality and social conformity. Understanding these factors is essential for marketers and businesses aiming to cater to the needs and preferences of consumers in the high-end market segment.