Millionaire next door and consumer

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Running head: CONSUMER BEHAVIOR

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CONSUMER BEHAVIOR

4. list four theories or concepts that might explain why non-millionaires drive vehicles that are

expected of real millionaires

Theory of cognitive dissonance- this is the reason why non-millionaires are willing to spend huge amounts on expensive cars. First, there is that dissonance where it seems like wasting money. However, they find a way to take away this dissonance by elevating the attractiveness of the expensive cars. They consider the features of the cars and compare to other cheap cars. By doing this, they decide to go for expensive cars of real millionaires (consumer, 268).

Self-perception theory- this is the reason why the non-millionaires would always opt for expensive cars and not change to cheaper cars. In this theory, the consumer looks at their behavior and uses it to make decisions. They look at how they are used driving high class cars and find that they are used to it. They would therefore at any time go for the cars that are meant for the real millionaires (consumer, 269).

Social judgment theory- this is the reason why non-millionaires go for cars meant for millionaires and would reject cheaper cars. They form latitudes of acceptance and rejection. In this case, the non-millionaires would only prefer new expensive models and reject anything less than that (consumer, 270).

Balance theory- this is the reason as to why the non-millionaires like driving positively valued cars. The non-millionaires want to form a unit relation with the people in their profession. The aim is to eliminate inconsistencies so that they can improve their attitude. For example, a lawyer would want to drive highly rated cars to be in the same unit as the colleagues. Not doing so would tend to create a negative attitude for them (consumer, 270).

Theory of trying- this is the reason why non-millionaires cannot change their consumption behavior even if they would like to do it. The environment plays a major role in shaping their decisions to buy expensive cars. They could wish to buy cheaper cars but their friends and the people around would perceive it negatively. They are forced to buy cars of real millionaires because that is what people around expect of them (consumer, 280).

Conclusion

The non-millionaires drive expensive cars because of different reasons. For some, it is a consumption behavior they have put up for themselves. In other cases, it is because of the external forces around them. However, it is possible that some would want to change but still find it difficult. This is because of the environment that does not allow them to so.