Published by MBA Skool Team, Last Updated: December 31, 2014
What is Level of Involvement?
Level of involvement is the degree of information processing and the amount of importance a consumer attaches to a product while purchasing it. In other words, it shows how involved the customer is towards a product personally, socially and economically.
There are two types of involvement:
• High involvement
• Low involvement
Low Involvement: Usually, these products involve a low level of risk or no risk and are inexpensive most of the times. Most of the times, consumers buy these products automatically. Examples of low involvement products are matchbox, toothpaste, snacks, etc. For example, when a consumer buys a matchbox, he just picks up any matchbox that he sees in the store. Here, the purchase is automatic. When a consumer buys toothpaste, every brand has the same utility except for the preference of the consumer. Here, there is no risk involved even if he buys toothpaste which is not his preferred brand.
High Involvement: Usually these products involve a high level of risk and are most probably expensive. Examples of high involvement products are car, diamonds, house, etc. For example, when a consumer is buying a car, he will research about the various models, different specifications, etc. of all the cars that fall in his budget before making a decision. This is because there is a high risk involved as he is spending a lot of money on the good.
Factors influencing level of involvement:
• Personal factors: Needs, importance, interest, values
• Object factors: Differentiation of alternatives, source of communication, content of communication
• Situational factors: Purchase, use, occasion
Factors affecting level of involvement:
• Moderating factors: Opportunity to process, ability to process. If both are high, it is a high involvement purchase, else low involvement
• Response factors: Search, information processing, decision or persuasion
Sometimes depending on various factors, the same product can be high involvement or low involvement. Example: Purified water. When a person is thirsty, he goes to the nearest store and buys a bottle of water. Say, the same person wants to buy a water purifier for his house. He would do a proper online research, take reviews from his friends and family, and weigh various pros and cons before making a decision.
Hence, this concludes the definition of Level of Involvement along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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