Customer Decision Research Articles

Cognitive Bias Sunk Cost in Marketing

The sunk cost cognitive bias, or sunk cost fallacy, is a human tendency to continue with: an investment, make a decision, business, couple or project based on the resources that have been invested, instead of making a current evaluation of the results. future benefits and costs. The objective of the research was to analyze the impact of sunk cost cognitive bias on customer decisions and its application in neuromarketing strategies. The specific objectives were: (i) Evaluate how sunk cost influences the perception of the value of products or services. (ii) Identify marketing strategies that exploit the sunk cost bias. (iii) Propose strategies to apply the sunk cost bias in marketing. The results show that the sunk cost bias significantly influences the perception of the value of products and services, affecting purchasing decisions, depending on the educational level, gender, and income level that influence the continuity in the use of products and services. due to previous investment of time or money; When purchasing expensive items customers feel obligated to continue using paid more even if it is not useful and used in full. The continuity in prepaid subscriptions, the perception of discounts for large quantities as a way to make better use of money, the probability of participating in loyalty programs for the accumulated rewards, the preference for payments and flexible cancellation, create a valuable perception of products they have previously invested in, the preference for repairing expensive items, and the perception of loss from a previous investment. It is concluded that the sunk cost cognitive bias significantly influences the decisions and behavior of a vast majority of customers, and how companies can use this information to design effective marketing campaigns.

Unleashing the role of e-word of mouth on purchase intention in select Facebook fan pages of smart phone users.

This study aims to examine the impact of e-WOM on customer purchase intentions in Facebook fan pages using theories of trust, value co-creation and brand attitude. The present research has set out to explore this emerging domain of study and has thus developed & tested propositions which attempt to establish a relationship between e-WOM and customer's purchase intentions. A deeper understanding of this possible association is obtained by studying the mediating roles of Trust, Value Co-Creation, Brand Image and Brand Attitude. The context for exploring this phenomenon is chosen to be the fan pages of smartphone brands on Facebook. The study involved conducting a sample survey of 490 respondents, comprising of both male and female, who belong to 5 smartphone brands Facebook fan pages-Samsung, Moto G, Lenovo, MI and ASUS are considered for the study. Out of which sample of 100 each has been targeted individually. The findings suggested that e-WOM significantly predicts the purchase intentions of the customers of a specific product and considerable impacted on the purchase decision. The findings of the study also reveal that customer 's trust beliefs, perceived value co-creation, brand image and brand attitude partially mediate in between relationships of e-WOM and purchase intention. The actual presence of different types of consumer electronics brands on the social media, more prominently, the smartphones, which undoubtedly are the most ubiquitous product of this segment. In fact, this indicates that presence on social media is a well- thought organizational strategy developed by companies to gain partial control over the customer 's decision- making process by establishing a close connect with the customers for a long period. This consequence will significantly impact the decision-making process of marketers or practitioners in relation to their marketing tactics. This research also indicates that marketers could devise more effective methods for distributing marketing content through social networking sites, while corporations can cultivate favorable electronic word-of-mouth for their products or services. Through the implementation of social media marketing strategies, companies can increase their sales volume and generate higher revenue. The study examined the role of trust, virtual community participation, and desire to purchase as mediators on smartphone brand fan sites on Facebook. It was observed that these factors had a partial influence on customer purchase intention.

Behavioural Economics in Marketing: Understanding consumer Decisison Making

Consumer decision-making, which is susceptible to emotional and social effects in addition to cognitive flaws, is the focus of behavioural economics, which integrates findings from economics and psychology. Examining the impact of behavioural economic principles such as limited rationality, prospect theory, and heuristics on customer behaviour, this abstract outlines important ideas and new developments in the field of applied behavioural economics to marketing. To determine which techniques are most successful in influencing customer decisions, we examine framing effects, anchoring, and nudging. Furthermore, the significance of data analytics and digital marketing in comprehending and capitalising on customer behaviour patterns is addressed. Businesses may boost engagement, happiness, and revenue by integrating behavioural data into marketing campaigns. In order to better understand consumer decision-making and its practical implications for marketers, the article also proposes topics for further research, such as the influence of new technology and ethical issues in consumer manipulation.

Network Analysis of Two-Stage Customer Decisions with Preference-Guided Market Segmentation

Abstract Network-based analyses have shown their effectiveness in understanding customer preferences through interactions and relationships between customers and products, particularly for tailored product design. There is limited research on applying this analysis to diverse customers with varied preferences. This paper introduces a market-segmented network modeling approach, guided by customer preference, to explore heterogeneity in customers' two-stage decision-making process: consideration-then-choice. In heterogeneous markets, like household appliances, even customers with similar characteristics or purchasing similar products can exhibit different decision-making processes. Therefore, In this method, we segment customers into groups based on preferences rather than just characteristics, allowing for more accurate choice modeling. Using Joint Correspondence Analysis, we identify associations between customer attributes and preferred products, characterizing market segments through clustering. We then build individual bipartite customer-product networks and apply the Exponential Random Graph Model to compare the product features influencing customer considerations and choices in various market segments. Using a US household vacuum cleaner survey, our method detected different customer preferences for the same product attribute at different decision-making stages. The market-segmentation model outperforms the non-segmented benchmark in prediction, highlighting its accuracy in predicting varied customer behaviors. This study underscores the vital role of preference-guided segmentation in product design, illustrating how a deeper understanding of customer preferences at different decision stages can inform and refine design strategies, ensuring products are more closely aligned with the dynamic needs and tastes of diverse markets.

Decoding Influencer Impact in Food Marketing: The Must-Haves, Should-Haves and the Role of Brand Trust and Price Consciousness

ABSTRACT Influencers have gained relevance in brand building owing to their potential to engender trust, shape customer decisions and empower brands. Nonetheless, research assessing conditions for beneficial influencer outcomes in the trust-deficit food sector are scarce, despite growing evidence that different contexts demand different endorsers. This paper examines how influencers’ attributes drive purchase by stimulating brand trust, and investigates the role of price consciousness. Structural equation modeling and necessary condition analysis were conducted on data from 401 followers of five influencers. Findings reveal that trustworthiness, expertise, brand fit, and brand trust are necessary conditions, congruence is additive. Brand trust fully mediates the impact of attractiveness on purchase behavior, and partially mediates the impact of trustworthiness, expertise and congruence. Price consciousness exhibits no moderating effect. Managers must prioritize transparent, knowledgeable influencers, who espouse values consistent with brands and consumers, if food firms were to invest in effective influencer strategies.

PENGARUH SOCIAL MEDIA MARKETING, BRAND IMAGE DAN BRAND AWARENESS TERHADAP KEPUTUSAN PEMBELIAN SCARLETT WHITENING

Customer decision in selecting and purchasing a particular brand are influenced by various factors like social media marketing, brand image, and brand awareness. This study is focused on examining how social media marketing, brand image, and brand awareness impact the decision-making process for purchasing Scarlett Whitening products. The research employs a quantitative methodology with an associative approach. Data analysis involves testing for validity, reliability, classical assumptions, multiple linear regression, and hypothesis testing. The study's results indicate that social media marketing, brand image, and brand awareness each have a positive and significant impact on purchasing decisions for Scarlett Whitening products, both independently and together.

Analysis of Factors Influencing Customers' Decision to Choose Wadiah Savings Products

This study aims to analyze product knowledge, benefit perception, promotion, and motivation factors as factors in customers' decision to choose wadiah savings products at Sharia Banks. The background of this research is the growth of the Islamic banking industry in Indonesia, which is predicted to be higher than conventional banks, driven by product and service innovation in accordance with Islamic law. This study uses a quantitative approach with confirmatory factor analysis (CFA) techniques. Research data was collected through a questionnaire with a probability sampling method using a simple random sampling technique. The results of the study show that promotional factors, product knowledge, and benefit perception are factors in customer decisions in choosing wadiah savings products. The motivation factor is not a factor in the customer's decision to choose a wadiah savings product. This research provides insight into the importance of proper promotion, in-depth product knowledge, and clear benefit perception in attracting customers to choose wadiah savings products at Sharia Banks

Halal Labels and Religious Commitment: Their Impact on Bottled Water Purchases

Research Aims: To determine how halal labelling affects purchasing decisions for bottled drinking water products among Muslim students in Solo Design/methodology/approach: The study used quantitative descriptive analysis with primary data. The data analysis method used multiple linear regression analysis with independent variables, namely halal labelling (X1) and religiosity (X2). The number of samples in the study was 183 respondents. This study uses a purposive sampling technique with specific criteria. The study's dependent variable (Y) is the decision to purchase bottled drinking water Research Findings: halal labelling and religiosity have a positive and significant effect on customer decisions to buy bottled mineral water drinks. The value of the coefficient of determination concluded that the contribution of the independent variables in the regression model can explain the variation of the dependent variable by 48,6%. In contrast, the rest is explained by other variables outside the regression equation model. Based on the analysis results, actual steps need to follow up on purchasing decisions for halal bottled drinking water products, one of which is that the university can provide and facilitate the availability of bottled drinking water (AMDK) products on the campus. Besides increasing awareness of halal drinking water, it can also positively impact the development of halal products in universities in Solo. Theoretical Contribution/Originality: The research highlights the simultaneous and partial influence of halal labelling and religiosity on purchasing decisions for bottled drinking water in universities in Solo. This adds a nuanced understanding of consumer behavior in a specific religious and educational context. The study emphasizes the need for further research into the urgency of providing halal AMDK, suggesting that such products are crucial for consumer assurance. This calls attention to a potentially underserved market segment. Keywords: Halal Label, Religiosity, Purchase Decision, Bottled Drinking Water.

INFLUENCE OF SERVICE QUALITY AND EMPLOYEE PERFORMANCE TOWARDS CUSTOMER SATISFACTION IN USING LOAN SERVICES AT THE MANADO PAWNSHOP OFFICE

This research aims to analyze the influence of service quality and employee performance towards customers' decisions in using lending services at the Manado Pawnshop Office. This research is important considering the strategic role of Pawnshop as a financial institution that provides collateral-based lending services. Data was collected through a survey of 150 customers who used lending services at the Manado Pawnshop Office. The analytical method used is multiple linear regression analysis to measure the influence of service quality and employee performance on customer decisions. The research results show that service quality has a significant positive influence on customer decisions. This indicates that aspects such as reliability, responsiveness and good service guarantees increase customer satisfaction and encourage them to use lending services. Apart from that, employee performance has also been proven to have a significant positive influence on customer decisions. The performance of employees who are professional, responsive and knowledgeable about Pawnshop products is a determining factor in customer decision making. The conclusion of this research is that both service quality and employee performance are key factors that influence customers' decisions in using lending services at the Manado Pawnshop Office. The practical implication of these findings is that Pawnshop needs to continue to improve service quality and employee performance to maintain and increase customer trust. It is hoped that this research can contribute to literature related to service management and human resource development in the financial sector.

Factors Affecting Customer's Purchase Decision of Makeup Products From Local Brands On TikTok Live Streams

Social media platforms have drastically reshaped communication, content sharing, and consumption in the fast-evolving digital era. TikTok, a prominent platform, has gained substantial influence in Indonesia, becoming a significant force in the business world. This study examines the factors that affect consumer purchase decisions for local makeup products during TikTok live-streaming sessions. Utilizing a mixed-methods approach, the research integrates qualitative and quantitative methods to understand consumer behavior comprehensively. Qualitative data is analyzed through manual coding, offering detailed insights into consumer perceptions and motivations. Quantitative data is assessed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to identify statistical relationships and patterns. The study involves a minimum of 12 participants for qualitative analysis and 200 for quantitative analysis, focusing on beauty enthusiasts familiar with TikTok's live-streaming features. The research aims to uncover how live streaming influences purchasing decisions and provides actionable insights for local beauty brands. By leveraging TikTok's interactive capabilities, the findings will help these brands enhance their marketing strategies and engage more effectively with their target audience. This study contributes to understanding the impact of social media on consumer behavior and offers practical recommendations for maximizing the potential of live streaming in the beauty industry.

EFFECT OF SERVICE FEATURES AND WORD OF MOUTH STRATEGY ON CUSTOMER DECISIONS IN USING BSI MOBILE

This study aims to determine the effect of Service Features and word of mouth strategies on customer decisions in using BSI Mobile banking. Research using quantitative methods. The location of this research took place at Bank Syariah Indonesia Cirebon KCP Plered 2. The population in this study was 4005. Calculated based on the Slovin formula, a sample of 100 participants was obtained. The instrument used is a questionnaire or a questionnaire. instrument validity used product moment validity and reliability used Croncbach's alpha. Data collection techniques through the distribution of questionnaires, interviews, and observation. Data analysis used included research instrument tests, classical assumption tests, multiple linear regression tests, and hypothesis. The results showed that part there was a significant positive effect of service features on customer decisions in using Mobile Banking for BSI Cirebon customers. KCP Plered 2 with a significant value of 0.000. Meanwhile, according to word of mouth, most of the variables did not have a significant positive effect on the customer's decision to use mobile banking for BSI Cirebon KCP Plered 2 customers with a significant value of 0.696. Simultaneously the influence of service feature variables and word of mouth contributed 22.75% to customer decisions in using BSI Mobile banking.

Customer enrollment and participation in building demand management programs: A review of key factors

Increasing the efficiency and flexibility of electricity demand is necessary for ensuring a cost-effective and reliable transition to zero-carbon electricity systems. Such demand-side management (DSM) resources have been procured by utilities for decades via energy efficiency and demand response programs; however, the key drivers of program enrollment and customer participation levels remain poorly understood — even as governments and grid planners seek to scale up the deployment of DSM assets to meet climate targets. Here we systematically review the evidence on multiple factors that may influence customer enrollment and participation in building DSM programs, focusing primarily on residential and commercial buildings. We examine the contexts in which relationships between DSM factors and outcomes are most often explored and with which methods; we also score the strength, direction, and internal consistency of each factor's reported impact on the enrollment and participation outcomes. We find that studies most commonly assess the effects of economic incentives for load flexibility on program participation levels, often using simulation-based methods in lieu of measured data. Few studies focus on program enrollment outcomes or regulatory drivers of either enrollment or participation, and gaps are also evident in the coverage of emerging DSM opportunities like load electrification. Removal of structural barriers (e.g., the lack of controls infrastructure) and the use of third party services (e.g., load aggregators) are the factors with the largest positive impacts on DSM outcomes, but no single factor emerges as clearly most impactful. For a given factor, the range of reported impacts typically varies widely across the relevant studies reviewed. Our findings provide a snapshot of the state of knowledge about building DSM and customer decision-making, and they expose key gaps in understanding that must be filled if building DSM is to expand as a critical resource for operating clean power grids.

Integration of business intelligence and marketing: Enhancing corporate reputation in the financial services sector

This investigation extends into the intricate fabric of customer-based corporate reputation within the banking industry, applying advanced analytics to decipher the nuances of customer perceptions. By integrating structural equation modeling, particularly through SmartPLS4, we thoroughly examine the interrelations of perceived quality, competence, likeability, and trust, and how they culminate in customer satisfaction and loyalty. Our comprehensive dataset is drawn from a varied demographic of banking consumers, ensuring a holistic view of the sector’s reputation dynamics. The research reveals the profound influence of these constructs on customer decision-making, with likeability emerging as a critical driver of satisfaction and allegiance to the bank. We also rigorously test our model’s internal consistency and convergent validity, establishing its reliability and robustness. While the direct involvement of Business Intelligence (BI) tools in the research design may not be overtly articulated, the analytical techniques and data-driven approach at the core of our methodology are synonymous with BI’s capabilities. The insights garnered from our analysis have direct implications for data-driven decision-making in banking. They inform strategies that could include enhancing service personalization, refining reputation management, and improving customer retention efforts. We acknowledge the need to more explicitly detail the role of BI within the research process. BI’s latent presence is inherent in the analytical processes employed to interpret complex data and generate actionable insights, which are crucial for crafting targeted marketing strategies. In summary, our research not only contributes to academic discourse on marketing and customer perception but also implicitly demonstrates the value that BI methodologies bring to understanding and influencing consumer behavior in the banking sector. It is this blend of analytics and marketing intelligence that equips banks with the strategic leverage necessary to thrive in today’s competitive financial landscape.

Optimizing Online Channels: Exploring the Interplay of E-Commerce in Customer Journey of Smartphone & Gadget Retail

The rise of e-commerce has transformed the global retail industry, including the smartphone and gadget sector. In Indonesia, while online shopping has become more popular due to its convenience, smartphone brands still face challenges. Despite the growth of online platforms, many customers prefer shopping in physical stores, especially after the pandemic. This research aims to understand what drives consumers to shop online for smartphones and gadgets, and to offer insights and strategies for both smartphone manufacturers and e-commerce platforms to boost their online presence and attract more customers. The study addresses key questions about consumer behavior: What motivates people to buy smartphones and gadgets online rather than in-store? How do they perceive their online shopping experience, and what factors affect their satisfaction? What obstacles do they face when shopping online, and how do they overcome them? How do they react to personalized marketing and recommendations? And what drives their loyalty and repeat purchases in the online market? By using the Customer Decision Journey, Marketing Technology, and Porter’s Five Forces analysis, the research identifies important factors like delivery, promotions, store information, and ease of finding product details. The study will provide actionable business solutions and recommendations to help smartphone manufacturers and e-commerce platforms tackle challenges and improve their online market strategies.

Pengaruh Teknologi Informasi Dan Fitur Layanan Terhadap Keputusan Nasabah Menggunakan Aplikasi BSI Mobile (Studi Kasus Bank Syariah Indonesia KCP Palembang Demang)

The role of technology in the banking world is absolute, where the progress of the banking system has been supported by advances in information technology. The increasingly developed and complex facilities offered to facilitate service, if the Mobile banking application has complete service features, is easy for customers to use, this is one of the factors that can determine customers' decisions in using the application. This research aims to determine the influence of Information Technology and Service Features on Customer Decisions using the BSI Mobile application (case study of Bank Syariah Indonesia KCP Palembang Demang). The method used in collecting data is through a questionnaire using a Likert scale. The sample used was 100 respondents using purposive sampling. The data analysis technique used for the questionnaire was validity and reliability testing, classical assumption testing, hypothesis testing with data processing using IBM SPSS Statistics version 26. The results of this research show that information technology has no influence on customer decisions, and service features positively and significantly influence customer decisions, besides that information technology and service features simultaneously have a positive effect on customer decisions.

Pengaruh Store Atmosphere dan Harga terhadap Revisit Intention Konsumen pada Kawisari Coffee dan Eatery Jakarta

Food and beverages are a component of the tourism industry that draws people to a location. Price and the atmosphere of the store, in addition to taste and product quality, can influence a customer's decision to shop. Kawisari Coffee & Eatery is a food and beverage retailer based in Jakarta. Many people who went to Kawisari Coffee & Eatery Jakarta had bad experiences because the hot environment made them feel uncomfortable and the prices weren't what they expected. Their decision to return may be influenced by this. The motivation behind this examination is to figure out how clients' expectations to get back to Kawisari Espresso and Restaurant Jakarta are impacted by the shop environment and costs. This study used quantitative descriptive methods. The sample for this study consists of customers who have made purchases at Kawisari Coffee & Eatery Jakarta. To gather information, polls were disseminated to 100 respondents utilizing the purposive inspecting methodology. SPSS Experiences 25 was used to play out different straight backslide examination on the data. With a normal t worth of 4.473 which is more unmistakable than the t table of 1.661 and a significance level of 0.000 which is more noticeable than 0.05, this investigation shows that (1) shop air basically influences plan to get back to. (2) Cost influences mean to get back to, with a basic worth of 0.317 more conspicuous than 0.05 and a normal t worth of 1.005 t table of 1.661. (3) The goal is to return to the combination of store climate and cost impacts, with an expected f-count value of 10.419 higher than the f-table value of 3.09 and an importance level of 0.000 higher than 0.05. The ideas that can be given for Kawisari Espresso and Restaurant Jakarta are to expand the quantity of climate control systems to keep clients from feeling overheated and focusing entirely on reasonable and cutthroat costs for clients to increment client encounters and animate client interests to visit once more.

Research on sales strategies for target customers of electric vehicles based on gradient boosting ensemble trees

This paper focuses on the automotive industry, especially the new energy vehicle sector, which is vital for the economy and needs careful market sales decisions. It analyzes data from 1,964 potential customers, including their satisfaction and personal information. The study uses machine learning to create a math model and give sales advice. The data is first cleaned without changing its original structure, and then normalized using the Z-Score method. For any outlier values in the data, the mean of similar items is used to fill in gaps. Specifically, for 500 missing entries about the number of children (B7), the paper groups customers by age, calculates the frequency of children in each group, and uses these frequencies to fill in missing values.Using the cleaned data, the XGBoost algorithm ranks the factors influencing customer decisions. For Brand 1, the top factors are economy (a3), work experience (B10), and safety performance (a4). For Brand 2, comfort (a2), disposable income (B15), and mortgage expenses (B16) are key. For Brand 3, car loan expenses (B17), battery technology (a1), and again mortgage expenses (B16) are most important.The paper also addresses imbalanced data by using an XGBoost binary classification model. This model predicts the likelihood of buying an electric vehicle using the Sigmoid function on tree node weights. It evaluates the model using Precision, Recall, and Area Under the Receiver Operating Characteristic Curve (AUC), which works well even with imbalanced data. The Precision and Recall rates for all three brands are above 90%, with AUC over 85% for Brands 1 and 2, and over 75% for Brand 3. This shows that the model is effective and can be used in real-world situations.

E-Shopping Behavior: An Empirical Study of Malaysian Consumers

Malaysia's e-commerce industry has grown tremendously, and many activities have been made online. One of the most common activities is online shopping or e-shopping. Online shopping behavior is the actions and decisions of customers when making purchases and completing transactions through Internet-based platforms. Consumer preference for online shopping is because it offers ease of buying or convenience, time-saving, price sensitive, anywhere-anytime, cost-effective, and other categories availability. Thus, this study investigated a few factors that affect Malaysian consumers' online purchase behavior: information availability, social influence, and trust. The researcher used an online survey and a self-administered questionnaire to gather data on the phenomenon. Data were collected from 297 Malaysian respondents using convenience sampling and analyzed using IBM Statistical Package for the Social Sciences (SPSS) 26.0 version software. The results revealed that all independent variables (information availability, social influence, trust) had a significant positive relationship with the dependent variable (online shopping behavior). This study also proved that information availability was the most influential factor compared to other variables. It is hoped that this study will benefit Malaysian marketers as it focuses on the Malaysian context. This finding will also help e-retailers enhance their online sales by creating a strategy that could attract more customers as a concern for building profitable relationships.

Factors that influence the purchasing decision of customers in commercial microenterprises in the canton of La Maná

Factors that influence the purchasing decision of customers in commercial microenterprises in the canton of La Maná

Beyond-money framing and customer decision to patronise Islamic banking: an experimental study

Purpose The recent growth of Islamic bank (IB) assets in Indonesia has been mainly driven by government interventions rather than the organic development on the demand side. A novel approach to attract new consumers, increase market share and accelerate its development is the need of the hour. This study aims to propose beyond-money framing that promotes the Shari’ah and social dimensions of IB’s products on top of its contemporary marketing strategy. This paper examines whether this technique can advance IBs selection. Design/methodology/approach This paper uses the (online) laboratory experiment involving 192 high- and low-literate participants from Generation Z (Gen Z). Using difference tests and Logit regression, this paper examines the impact of beyond-money framing on customers decision-making. Findings Beyond-money framing has a significant impact in influencing customers decisions to select profit-and-loss sharing (PLS) products offered by IBs. The effect of the framing accelerates in the high-literate customers. Research limitations/implications The contract examined is only the PLS one (mudharabah). Respondents are also restricted to Gen Z. This study does not separate the effect of Shari’ah and social aspects from beyond money framing. Practical implications To attract new customers, IBs should emphasise their products’ social and Shari’ah features rather than relying solely on a low-price strategy. Originality/value To the best of the authors’ knowledge, this paper is the first study proposing the framing strategy for IBs and examining its impact on IB’s product acceptance in Indonesia.