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Involvement Theory

In: Business and Management

Submitted By epochherald
Words 1285
Pages 6
Question 2: “High involvement products are always high risk and always expensive”. Using examples, discuss the validity of this statement and reflect upon strategies that marketers might employ to reduce level of risk in a purchase decision situation.

Involvement is defined as a person’s perceived relevance of the object based on their inherent needs, values and interest (Solomon et al., 2006). It has a major influence on consumers’ decision-making and communication behaviors (Michaelidou and Dibb, 2006). There are two types of involvement that consumers would have when purchasing for a product/ service: enduring involvement (Zaischkowsky, 1985), which refers to the importance of the product to the consumer’s self-concept and situational involvement (Dholakia, 1997), which refers as a term suggests, occurs only in specific situations.

Risk has been linked directly with the level of involvement. There are 6 types of risks (Jacoby & Kaplan, 1972) including monetary, social, psychological, functional, physical and time.

In this essay, the link between “high involvement products” and “high risk” would be examined. Then the implication for marketers to reduce the level of risk in a purchase decision situation would be mentioned.

First of all, the decision making process would be used as the primary key to access this issue. It is the process that consumers go through when purchasing for a product/ service with 5 stages including problem recognition, information search, evaluation of alternatives, product choice and outcome (adapted from Fill, 2010).

In the first stage, when customers realize their needs as the problem that they need to solve, they would categories it into different criteria. They could classify their needs according to the hierarchy of need (Maslow, 1943) by considering which stage their need belongs including solving basic/ physical need…...

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