Consumer Behaviour Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Consumer Behaviour

1. Models and Factors that influence Consumer Purchase Decision

a. FISHBEIN MODEL

As GameStop is a video game retailer, hence, the Fishbein model is suitable. The Fishbein model is a multi attribute model used in consumer behavior that helps in breaking down specific consumer attitude about a particular product or brand into various attitudes. These attitudes are then individually gauged and measured for responses independently. In the case of GameStop, which deals in retailing video gaming products, the model can be applied by breaking down the specific product attributes that a consumer looks for (Bettman, 2004).

The attributes for the gaming consoles that are demanded by consumers include brand name, latest technology used, ram or processor, features, graphic card and the complementary accessories, price and durability. In addition, the product availability and brand image is also one of the most important attributes that are demanded by consumers. If the product satisfies every single attitudes of a consumer then the purchase decision is made. In Fishbein model, one more implication is that the product attributes are inter-linked with each other (Bettman, 2004). For example, in case of GameStop, the attribute of price may restrict consumers’ ability to buy the product with more specifications. Another example may include cognitive dissonance that occurs between the attributes of product features and brand image. It is always possible that one retailer may offer a brand with several product features at low price but the brand reputation is low, and the others may offer low featured product with high brand image that puts a consumer in dilemma; hence, he decides to buy that particular product.

The social responsibility factor may account in terms of what types of games are offered by a particular company or major gaming console developers. The more violent games the developers make; the more immune feelings of care, hurt or love would grow in the gamer. This places a direct role in the character building of the gamer; thus, it places a huge responsibility on the gaming developer and the retailer alike to make and promote games that are socially beneficial rather than harmful ones (Sheth, 1974).

b. HIGH OR LOW INVOLVEMENT PURCHASE DECISION

GameStop provides its customers with video gaming products that are electronics and involve cautious decision making by consumers. It is because first of all the buyers can’t risk spending on a low quality less featuring video game. Consumers are conscious for video games and want to have an up to date version of the consoles at their place that will have high quality graphics, and better picture quality. In essence, a consumer wants to experience the avatar world in real time for which the consumer will involve in a high involvement purchase decisions.

The consoles are compared against each other for their product attributes, the technology that is incorporated in them and above all the brand. For example, at present there are only a few player in the market e.g. Sony, Microsoft and Nintendo, which are names of few large ones. Xbox 360 or latest Xbox 720 is compared for what new the product has to offer versus the previous model. As this is a high involvement decision; hence, it is subject to post purchase dissonance anxiety. However, as there are a few players in the market, hence, the sales people are trained to demonstrate as much information to the customer as they can to make a sale. Therefore, it rarely happens that post purchase dissonance happens immediately after purchasing but as this industry is advancing; hence, the technology becomes out dated soon, and the earlier products become obsolete. This later develops into dissonance for getting hands onto the new video gaming console.

c. BUTTERFLY CURVE MODEL

The butterfly curve model in consumer behaviour suggests that a slight variation in a product offering may bring a positive perception on consumers’ conscious. The marketing implication of the butterfly curve model suggests that the new video games must include new features that reflect market and demographic trends (Fay, 1989). For example, video games must include enhanced and realistic graphics, Dolby surround sound, and use of USB instead of CDs or DVDs for playing games, which restrict gaming due to price constraints. Moreover, two to three games per DVD can be introduced and JTAG or RGH up to date versions may be introduced so that people in under developing or developing countries can also avail the games.

Ina addition to this, two to three games per DVD might also be cost effective, or provide latest games free with the purchase of consoles, or an already installed game in the ram would be a fringe benefit for the gamers. Keeping in mind the demographics and needs of the target segment, it can be said that a little modification would ....................

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