...Consumer Decision Making According to (Consumer decision making process, 2010) Consumer decision making is the process of choosing between two or more alternatives; consumer decision making may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option, goods, services, organizations, people, places, and ideas that will best addressing their current need. Sometimes consumers go through these stages of gathering and processing the information without even realizing that they are going through the processes. (Alet, 2001), states that Consumer behaviour and consumer decision-making have become prominent research topics in the various fields of consumer science in recent years. Consumer Decision Making pertains to making decisions regarding product and service offerings. There are different consumer decision making models such as Bettman's Information Processing Model of Consumer Choice, the Howard-Sheth model of buying behavior, Kotler model and the Nicosia model. The Engel, Kollat & Blackwell (later Miniard) consumer decision making model will be looked at for the purpose of this research. Engel, Kollat & Blackwell (later Miniard) consumer decision making model According to (Sahney, 2005), the Engel, Kollat and Blackwell Model, also referred to as the EKB model was proposed to organize and describe the growing body of knowledge/research concerning consumer behavior. A comprehensive model, it shows the various components...
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...Problem Recognition. One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have thepurchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives. Consumer involvement will tend to vary dramatically depending on the type of product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other way (e.g., a word processing program or acne medication). It is important to consider the consumer’s motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a logical progression of consequences of product use that eventually...
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...Consumer Decision Making Process Any organization or company with a product or service to market to consumers needs to consider the decision making process individuals go through. Consumers go through a process when making choices. This paper will discuss the consumer decision making process and its importance to marketers. Awareness Before a consumer can even begin the decision making process he or she must be aware of the product or service. At this stage the consumer is aware of a problem. For example, someone may decide that they are hungry. The problem has been identified by the individual that they must eat to satisfy their hunger. The hunger example will show the steps of a nominal decision. A nominal decision is a very low involvement purchase. Limited decision making and extended decision making are for high involvement purchases, for example, the purchase of a vehicle, or a house. Information Search & Understanding The next step of the process is the information search phase. For a nominal decision, such as what to have for lunch, an individual would conduct a limited internal search for information. The individual could ask his or herself questions such as: What do I feel like eating? Is there anything I want to eat in the fridge? How much money will I spend on lunch? These are all questions which the individual should be able to answer for themselves. For high involvement purchases such as purchasing a vehicle, a consumer’s decision making process will follow...
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...INTRODUCTION We all have to make choices. One of those most important decisions made in our life are based on the market - buying goods. No one buy goods unless they have a problem, a need or a want. The Consumer Decision Making Model can be applied with any economics decision you have to make. The goal in creating this model was to analyze how individuals sort through facts and influences to make decisions that are logical and consistent for them. Think like an economist with this convenient tool. The CDP model consists of seven major stages: Need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation and divestment. The aim of this paper is to discuss these processes with reference to a product and analyze the reason why marketers should understand the CDP model. 1. Need recognitions Need recognitions is the most important factor which leads to buying of products and services. Need in fact is the catalyst which triggers the buying decision of individuals. It occurs when an individual senses a different between what he or she perceives to be the ideal versus the actual state of affairs. Need recognition depends on how much discrepancy exists between the actual state (the consumer’s current situation) and the desired state (the situation the consumer want to be in). Consumer buy things when they believe a product’s ability to solve a problem are worth more than the cost of buying it. Imagine having...
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...Understanding consumer behaviour is fundamental to marketing. For this reason, a lot of research is underway to develop a wider understanding of the customer decision-making process in an increasingly complex market context {{57 Lye, Ashley 2005;}}. 2.1 VW Golf Buy a car is an extended problem-solving decision because it is a high-involvement purchase and requires a substantial amount of effort, extensive research and a meaningful evaluation of alternatives {{59 Solomon, Michael 2006;}}. According to Kotler (2009), the consumer decision-making process involves five steps that consumers move through when purchasing a good or a service. Firstly, when a problem recognition advances, the consumer becomes aware of his desires since he compares his actual condition with the ideal one, this process is the core aspect in motivating to purchase {{59 Solomon, Michael 2006;}}. Moreover, consumer behaviour is influenced by both internal and external stimuli like social, cultural, personal and psychological included gender, income, urban location, education, children or other characteristics. The potential buyer might have realised that the vehicle he owns is not meeting his needs anymore because it is old; it does not reflect his new lifestyle, or there is a recent and better model on the market {{58 Prieto, Marc 2013;}}. So his particular unfulfilled need is a compact family car, fuel-efficient, safe, comfortable, spacious and with a price range between £17.000-£23.000 {{60 Car 2015;}}...
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...Understanding consumer behavior is fundamental to marketing. For this reason, a lot of research is underway to develop a wider understanding of the customer decision-making process in an increasingly complex market context (Lye, Shao, et al. 2005). VW Golf Buying a car is an extended problem-solving decision because it is a high-involvement purchase and requires a substantial amount of effort, extensive research and a meaningful evaluation of alternatives (Solomon, Bamossy and Askegaard 2006). According to Kotler (2009), the consumer decision-making process involves five steps that consumers move through when purchasing goods or a service. Firstly, when a problem recognition advances, the consumer becomes aware of his desires since he compares his actual condition with the ideal one. This process is the core aspect in motivating to purchase (Solomon, Bamossy and Askegaard 2006). Secondly, consumer behaviour is influenced by both internal and external stimuli such as social, cultural, personal and psychological which includes gender, income, urban location, education, children or other characteristics. The potential buyer might have been realised that the vehicle he owns is not meeting his needs anymore because it is old; it does not reflect his new lifestyle, or there is a recent and better model on the market (Prieto and Caemmerer 2013). So his particular unfulfilled need is a compact family car, fuel-efficient, safe, comfortable, spacious and with a price range...
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...AIDA – CONSUMER DECISION MAKING AIDA is an acronym used in marketing that describes a common list of events that may be undergone when a person is selling a product or service. * A - Attention (Awareness): attract the attention of the consumer. * I - Interest: raise consumer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features, as in traditional advertising). * D - Desire: convince consumers that they want and desire the product or service and that it will satisfy their expectations. * A - Action: lead consumers towards taking action, that is deciding to purchase. AIDA Marketing has been around for a long time. The idea is that a customer goes through these four independent stages before making a purchase. Let’s describe these steps further: The AIDA model consists of 4 different phases that aims the consumer to make the decision to buy a product or service. Attention Attention is the 1st phase that will spark the interest of a consumer. What sparks attention is usually by its unique design, pricing, and marketing. In our media-filled world, you need to be quick and direct to grab people's attention. Use powerful words, or a picture that will catch the reader's eye and make them stop and read what you have to say next. With most office workers suffering from e-mail overload, action-seeking e-mails need subject lines that will encourage recipients to open them and read the contents. For example, to encourage...
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...Apple has won several excellence in marketing awards. Why? Marketing plays an integral role for Apple Inc. It is the best way for them to let their consumers whats in store for them, increase revenue, alert their competitors that they are always working to provide their consumers with the best and be one of the best electronic and software companies worldwide. Apple tries to target every group of people; students, parents, and children. Apple targets their customers and focuses on giving customers what they really want. Four months out of the summer, they provide their students with educational pricing. All they need is their school ID or school email and they are discounts provided on all apple products especially laptops and iPads. Students can receive up to one hundred to two hundred dollars off the Apple product plus and additional fifty to one hundred dollars in iTunes gift cards. This allows students to purchase any applications, music, and/or books from the iTunes store. This is advertised all over Apple’s Website. Apple focuses on cooperative customer support (Moorman, 2012). In terms of customer support, they under how busy their stores can get. Upon walking into an Apple Store, you will find an array of all Apples products on display for interactive use. Students, parents can be entertained just by using the different products in the store while they wait for customer support specialist. The company has also provided a new way to wait for you help. For example...
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...PART B Internal and external influences affecting the Consumer’s Decision Making Process. A number of factors affect the consumers buying behavior. Some of these are internal and others because of external influences. A few of these internal and external factors influencing the consumer’s buying behavior while deciding to buy a You C-1000 Vitamin C. Decision making is a process dependent on many factors which vary from person to person and also from region to region. Consumers are living in a society which follows its own culture and values. Personal preferences again change with age, lifestyle, income, and psychological factors. Internal aspect 1. Perception Perception is how a consumer processes information consciously or subconsciously. The perception about the brand and also about him has an influence on the buying decision. When consumer see You C-1000 advertisement, they can get the information, that product is for better life and healthy body. Brand of You C-1000 vitamin also can influence the decision making of costumer, the brand means, there are many vitamin c in that drink. Also the slogan “Healthy Inside, Fresh Outside” 2. A consumer’s knowledge and experiences A consumer’s knowledge and experiences have an impact on the decision making process to You C1000 vitamin. An educated person is aware of benefit available in the drink and chooses the brand and model in accordance with his needs. Various previous information obtained by a person who...
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...HOLIDAY DECISION MAKING: PROCESS OF LEISURE DISCOVERY AND ADAPTABILITY. The following essay attempts to discuss and critically evaluate the traditional problem solving, cognitive model of consumer decision making process with that of holiday decision making. The writing begins with the introduction phase which discusses the traditional model of consumer decision making process. The following subsection discusses the sequential stages involved in the traditional consumer decision making, following is a comparative analysis between holiday decision making and traditional consumer decision making based on the stages involved in traditional consumer decision making. A conclusion that summarizes this study follows thereafter. I. INTRODUCTION “Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, people and ideas overtime.” (Wayne D. Hoyer, Deborah J. Maclnnis 2008). This means that as much as the consumer will purchase a certain product e.g. soap, based on his preference of brands, he may also purchase a product such as a book just because it has been written by a popular author. Consumer decision making is about market choice behavior where consumers must make a decision between two or more competing alternatives, and thereafter decide on whether to purchase the alternative. The consumer decision making process is the stages that a consumer goes through in order...
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...HOW PEOPLE MAKE ECONOMIC DECISIONS How People Make Economic Decisions Abstract People make decisions every day based on day-to-day activities but what actualy drives the individual decision-making process. Tradeoffs, opportunity cost, margins, and incentives are the four principles of individual decision making process. The following paragraphs each of the four principles of the decision-making process. This paper also explains how the principles of economics affect decision-making, interaction, and the economy. Organizational Trends The four principles of decision-making are tradeoffs, opportunity costs, margins, and incentives. A tradeoff is the sacrificing of an item to gain something of greater value to an individual. Opportunity cost is what an individual give up to gain the new item, for example some students sacrifice their weekends or free time to gain a college degree. Margins is the next principle, margins are small changes to a plan of action. The last principle of individual decision-making is incentives. Incentives are anything that encourages or promotes a change in person’s behavior (Bauman, 2002, p.1-5). People make decisions everyday in which they compare the marginal benefits to the marginal cost. A few years ago the price of fuel reached a record high. These fuel prices caused consumers to stop purchasing gas guzzling SUVs and owners were even trading them in for environmentally friendly hybrids. Consumers also relocated closer to...
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...Consumer Behavior |Program |: |MBA |Class of |: |2009 | |Credit |: |3 |Sessions |: |33 | |Course Code |: |SL MM 602 | | | | Objective To understand the various factors influencing behavior of consumers – as individuals and as members of a group/society, and also the impact of consumerism in the contemporary environment. To understand the behavior of consumers – decision making, post-purchase behavior, behavior in a shopping environment, etc. To understand the behavior of organizations as consumers. |REFERENCE BOOKS |AUTHOR / PUBLICATION | |Consumer Behavior |ICMR | |Consumer Behavior, 5e |Leon G Schiffman and Leslie Lazar Kanuk, Prentice-Hall, India | |Consumer Behavior |Hawkins, Best & Coney, McGraw Hill | |Consumer Behavior |Blackwell, Miniard & Engel, Thomson ...
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...Jeff Bray Consumer Behaviour Theory: Approaches and Models Consumer Behaviour Theory: Approaches and Models...............................................2 1.1 Consumer behaviour & consumer decision making ............................................2 1.2 Theoretical approaches to the study of consumer behaviour..............................3 1.3 Economic Man .....................................................................................................4 1.4 Psychodynamic Approach ...................................................................................4 1.5 Behaviourist Approach ........................................................................................5 1.6 Cognitive Approach .............................................................................................6 1.6.1 Cognitive Models of Consumer Behaviour ..................................................9 1.6.1.1 Analytic Cognitive Models ..................................................................10 1.6.1.2. Prescriptive Cognitive Models............................................................20 1.7 Humanistic Approach ........................................................................................25 1.7.1 Humanistic Models of Consumer Behaviour..............................................25 1.9 Summary ............................................................................................................28 References..............................
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...FACTORS AFFECTING CONSUMER BUYING BEHAVIOR. OVERVIEW The discussion in this part focuses on the critical literature review on the study of the factors affecting consumer buying behavior. Matters addressed in this discussion are, introduction on the relevant terms, significance of the consumer buying behavior to performance of business, theoretical and empirical literature reviews on the study as well as the conclusion which contains what has not been done by other researchers. INTRODUCTION Consumer Buying Behavior is the tendency of consumers to buy products from a company. It determines the various factors that influence a consumer to make a decision of buying the company’s products. Buyer Behavior is a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants Consumer buying behavior has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers It is worth noting that consumer buying behavior is studied as a part of the marketing and its main objective it to learn the way how the individuals, groups or organizations choose, buy use and dispose the goods and the factors such as their previous experience, taste, price and branding on which the consumers base their purchasing decisions. We study consumer buying behavior...
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...the process of selecting decision alternatives for the whistle issue of the toy company, evaluating theadvantages, disadvantages, legal, financial and ethical considerations involved in the various alternatives.The purpose of this memo is to outline three possible decision alternatives to address the problem of small lead traces tocontents of metal whistles produced by a U.S toy company due for shipment to South America; by discussing the methods forthe selection of decision alternatives, the advantages, disadvantages, ethical considerations, financial and legal prospective ofthe each decisions . The memo will further justify and analyze the impact of the recommended decision on customerrelationship as well as demonstrate the role of ethics and social responsibility in choosing this decision.While important financial or strategic information is used in the decision-making process, business ethics has become anincreasingly popular tool used in making decisions. Business ethics is commonly referred to as the professional judgment orethical perspectives used by an individual or a company executive team in resolving moral or ethical problems in business. Inresolving the problem of the lead-contaminated metal whistles, I will discuss three possible decision alternatives, methods ofselection of the alternatives, pros and cons of the alternatives as well as potential legal, financialand ethical consideration involved in the selection. Ethical decisions-making can be difficult when it...
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