There exist situations where consumers have no alternative supplier or vendor of a product, and in such circumstances, a consumer will purchase a product regardless of extra dollars required. For instance, Vinnie of his way to fishing had no alternative of buying Pepsi except on the convenient outlet (Peter and Jerry 439). Convenience of accessing a product can make consumers pay extra dollars. In situations where convenience premises are closer or easily accessible consumer may accept to pay extra dollars (Samli 103).
Perception on the value of the dollar can make a customer pay extra dollars. Income levels, modes of payments, as well as the source of income (dollars), can influence the value of the dollar. For example, dollars received as gifts, paid by cash or installments have different worth than cash received from working or paid through cash respectively (Peter and Jerry 442-443).
Cognitive activity can also influence extra expenditure by a consumer. When the price of a product hikes, few consumers purchase it since they belief it is of low value. Cognitive involvement can at times influence a consumer in making extra expenditure, like the case of Vinnie, who had to buy Pepsi on his way to fishing (Peter and Jerry 439). An example of cognitive activity includes, given product options, as was in eleven million bicycles by Japanese manufacturer, consumers use memory of last purchase in deciding the type of bike to buy (Peter and Jerry 443). Moreover, the risk of using some mode of payment can make a consumer spend extra dollars. For instance, in online shopping, some consumers prefer extra spending to revealing numbers of their credit cards (Peter and Jerry 445).
Value perception on a product can influence customer’s extra expenditure. Consumers regard product’s value than its cost. Therefore, provided the product is perceived to offer more benefits, cost can never be a hindrance to purchasing such a product to the consumer (Peter and Jerry 446). Behavior effort example includes the motivation of a customer to assume marketing prices in an effort to lower their expenditure amount, and formulate trade-offs on types of prices or costs (Peter and Jerry 445). In summary, amounts of dollars, cognitive activity, time, as well as behavior effort influence consumer’s decision to buy a product.
Works Cited
Peter, J P, and Jerry C. Olson. Consumer Behavior and Marketing Strategy. New York, NY: McGraw-Hill Companies, Inc., 2010. Print.
Samli, Coskun. International consumer behavior in the 21st century: impact on marketing strategy development. New York: Springer, 2013. Print.
