Consumer Behavior Literature Review

Chapter Two: Literature Review

2.1 Consumer Behavior

Attitude is an immediate determinant of intention to perform a behavior. The study of consumer behavior both embraces “what and why people buy” and the consumer activities, such as “why and how customers use the goods and services”(Blackwell et al. 2006). That modern marketers recognize that consumer behavior is an ongoing process, the study of the process involved individuals, groups, or organization and the process of their use to select, secure, use, and dispose of products, services, experience, or ideas to satisfy their needs and wants (Solomon 2011, p. 33). It is also concerned the social and economic impacts that purchasing and consumption behavior has on both the consumer and wider

If he is satisfied reasonably, he purchases the product again, and talks favorably to family members, friends, co-workers and etc. on the other hand if he feel disappointed, they will repeat the step in the future purchase.

2.3 Factors influence consumers purchasing behavior

As we already discuss consumer purchasing decision process before, there are also various factors affecting the consumer purchasing behavior where price, trust and convenience are regarded as the three main influencing factors.

2.3.1 Price

According to information by IMF (2013) about price, it is the amount of money that a buyer gives to a seller in exchange for a good or a service, where the buyer has to lose something (price or goods) to achieve or acquire something provide by the seller where the seller is willing to acquire. As price it should follow supply and demand rule, where the value and the goods are sufficient to the consumers mind. If these factors is not suitable or the equilibrium is greater or lesser, it could cause ineffective sales. Price affect every aspect for many buyers and many sellers. Just as it was said by Marketing schools (n.d), A single market – Clearing price is most likely to prevail for

Furthermore the same thing also expressed by McKnight, Kacmar, and Choudry (in Bachmann & Zaheer, 2006), states that the trust built before certain parties know each other through interaction or transaction. Online trust refers to trust in a virtual environment.

According to Rousseau, Sitkin, and Camere (1998), the definition of trust in various contexts, namely a person 's willingness to accept risk. Adapted from the definition, Lim et al (2001) suggest consumer confidence in Internet shopping as consumers ' willingness to expose themselves to the possibility of losses experienced during the transaction of shopping via the Internet, based on the hope that the seller promises a transaction that will satisfy the consumer and is able to send the goods or services that have been promised.

2.3.3