Wednesday, April 3, 2013

Consumer Behavior



Reference Group Theory in its application at IKEA, Leeds.


Contents

Introduction Page 3

Observation Page 5

Conclusion Page 10

References Page 12

Introduction

With this evidence we seek to elaborate our understanding of the implications of concourse reference surmise applied within the format of a three-hour individual contemplation at one of the worlds largest furniture retailers, IKEA in Leeds. Group influences layabout be perceived whenever purchase decisions are involved. However researchers adduce this process occurs not only on a conscious(p) level, but often unconsciously.

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This gave rise to our desire to investigate free radical influence theory on the basis of our observations, as we unendingly seek to understand ourselves better and determine as to what drives us to purchase certain products. These circumstances therefore predispose the building of our essay, as we will present relevant theory and later on relate it to our ascertainments.

Reference mathematical group theory has been defined by Bearden and Etzel (1982) as an individual or group that have a major impact on the buying behavior of a single person, where a group is seen as an aggregation of individuals standing in certain descriptive relations to each other (Seshadri, 2006; p.35). Furthermore they propose that the key concept of `Group Reference (Hyman et al., 1942) not only relates to but actually explains why individuals often do not comply in their behavior with other members of the same social group. To explain this phenomenon, place and Lessig (1977) conducted a research, which identified the three factors of reference group influences. The number 1 one being the impact of infoal influence, which describes the need to build an information base for decision making. The second dimension is described as utilitarian group influence, where an individual seeks to comply with others expectations to achieve rewards or to avoid a...

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