This website uses cookies to ensure you have the best experience. Learn more

Consumer Decision Making Process Essay

1327 words - 5 pages

Challenged with competing products, companies are finding it more important to understand why a consumer would choose one product over another. To do this, the company needs to recognize the complex decision-making process a consumer goes through. The variety of products is always expanding, but with the consumers' limited temporal and cognitive resources, they cannot simply analyze all the products.Making rational choices does not only require access to options, but also the necessary time and information needed to choose.Consumers increasingly face information overload and consequently are unlikely to process all available product or service specifications.Marketers can strategically design the information given to consumers are such the options being promoted appear more attractive causing the consumer to make the decision to purchase.Elements of the Decision-Making ProcessThere are five elements of consumer behavior that lead to a purchasing decision. The first element is problem recognition; the consumer comprehends a need, difference between a perfect and a genuine situation. The situation can be as simple as seeing there is no bread left. Second information search, the consumer is looking for value. This is where clarification of options is revealed to the consumer and many involve internal and external search. Next is assessment of other possibilities. What standards will be used and what is the perceived value in making the purchasing decision. Fourth is the decision to purchase. This involves when, to buy, who to buy from, or if to buy at all. When to buy will come from influences like store atmosphere, time, is there a sale happening, and the shopping experience. Who to buy from will depend on the terms of the sale, past experience with the seller, and the return policy. If all the factors do not fit what the consumer is looking for the consumer may and will chose not to buy. Fifth is post-purchase behavior. Once the consumer makes the decision to purchase, he or she will compare the likelihood the buying decision meant expectations, this will leave the buyer either satisfied or dissatisfied. Pleasure or disappointment will affect the consumer's impression of value, any communications and recurring purchase activities. Companies work to establish a positive after purchase communication with the consumer to build a relationship with the buyer for continued business. At this point companies understand the consumer may have tension or anxiety following a purchase, this is cognitive dissonance. (Price, Zinkahn 2004)Cognitive dissonance is the perception of incompatibility of two cognitions. Cognitions are processing information applying knowledge and changing preferences, it is reasoning, perception, and learning. Cognitive dissonance is any element of knowledge, attitude, emotion, belief, or behavior. (Price, Zinkahn 2004)An example follows. Jane purchases a new computer. After little or no consideration of various computers, Jane chooses...

Find Another Essay On Consumer Decision Making-Process

Consumer Decision Process Essay

967 words - 4 pages This is a short essay I had to write for my marketing class in how I used the consumer decision process in my personal life.Consumer Decision ProcessConsumer Decision Process is a complete six step process which an individual completes in making purchasing decisions. Some purchases with high levels of social or economic consequences are highly involved, known as high-involvement purchases, such as buying a new car or a new home. Low level

Consumer Decision Process Essay

3253 words - 13 pages CONSUMER DECISION PROCESS 1.0 Introduction As a consumer we are forced into making decisions everyday of our lives. Every purchase involves some sort of decision process. To gain an edge, marketers need to understand the thought process involved with consumers and their purchases. Part of understanding the way consumers think is the consumer decision-making process model. This model involves the steps that a consumer would sub consciously make

Extensive decision-making process - consumer behaviour: analyse the many elements of EKB's consumer decision model in relation to consumer behaviour

5457 words - 22 pages that logically indicate the interrelationship of variables for research purposes and also aim to give an understanding of what happens as variables and circumstances change (Erasmus et al, 2001). The utilisation of EKB's consumer decision making model has allowed us to become more perceptive when undertaking this complex purchase. The model under analysis is a schematic representation of the stages of the buying process;2.1 Need recognitionThe

The Decision-Making Process

2363 words - 10 pages   Table of Contents Introduction 1 Traditional Decision-Making Process 1 Making Rational Decisions 2 Problem Definition-Rational 3 Identify Decision Criteria-Rational 3 Weight the Criteria-Rational 3 Generate the Alternatives-Rational 4 Evaluate the Alternatives-Rational 4 Select the Optimal Solution-Rational 4 Making “Good Enough” Decisions 4 Making Intuitive Decisions 4 Making Creative Decisions 5 Global Decision Making 5 Ethical Decision

Decision Making Process Model

1776 words - 7 pages Introduction The decision is to select an action among a number of actions that solves a given problem, that prevents a problem from happening, or that forces to apply new ideas for development. The need for understanding decision making process is increasing because the complexity of modern organizations is increasing, and because the modern organizations' effectiveness depends on the decisions made by the managers. The question is how to

Decision Making Process

688 words - 3 pages decisions based on their working unit, such as setting monthly schedules, handling employee conflicts, allocating pay rises, and recruiting and disciplining employees. Senior managers are therefore experts in the line of industry they are involved in, while supervisors are seen as departmental specialists.Decision making is a process and not simply a choice of alternatives. Figure 1 illustrates the decision making process, - an 8 step process that

Decision Making Process

761 words - 3 pages others. There are several steps to decision making. Majority of the steps are in total of three, but I am going to discuss six.The six steps of the decision making process are:•Step1: Define the problem•Step 2: Identify available alternative solutions to the problem•Step 3: Evaluate the identified alternatives•Step 4: Make the decision•Step 5: Implement the decision•Step 6: Evaluate the decisionStep 1: Define the

Decision making process

722 words - 3 pages computer program for Indomaret. In decision making process he will select a rational choice from the available options. Agustinus believe to make a good decision, he must weight the positives and negatives of each option, and consider all opportunities. To make decision making effective, a person must be able to outlook the effect of each option as well, and based on all these variables, that person are able to determine which option is the best for

Using the theory of consumer behavior, conduct critical analysis on the decision making process

3791 words - 15 pages discussed late.2. The distinct roles in the family decision-making processAs a case, one family intends to buy a station wagon of Toyota recently. Undoubtedly, the purchase activity will experience series decision-making process due to the automobile is valuable equipment for the family. In the light of Neal, Quester, and Hawkins, consumer decision making process of high-purchase involvement consists of five stages, namely, problem recognition

How Martketers Use Nonverbal Communication to Influence Consumer Decision Making Process

1458 words - 6 pages Outline Purpose: • I want to show how marketers use nonverbal communication to influence consumer decision making process Introduction: • Consumers don't even realize how heavily their decision making process is influenced by nonverbal communication Body Outline: • Main Idea Nonverbal communication as a an consumer decision making influencer • Physical communication • Signs of communication (mechanical communication) • Aesthetic

The Process of Decision Making

1250 words - 5 pages Organizational behavior helps managers to improve the organization in a good way. Decision making process is the one of the behavior in human organizational behavior. According to McShane and Von Glinow (2000), “decision making a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs”. Decision making is a linear process and it includes six steps such as identifying

Similar Essays

Consumer Decision Making Process Essay

1940 words - 8 pages Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch

Consumer Behaviour: Decision Making Process Essay

879 words - 4 pages Challenged with competing products, companies are finding it more important to understand why a consumer would choose one product over another. To do this, the company needs to recognise the complex decision making process a consumer goes through. The variety of products is always expanding, but with the consumers' limited temporal and cognitive resources, they cannot simply analyse all the products.As Jon Elster (1989) points out, making

Decision Making Process Of Consumer Behaviour

3492 words - 14 pages Decision making is a focal interest in consumer-behavior research; consumers constantly make decisions about the selection, consumption, and disposal of products. Many of the most important decisions consumers face involve making difficult trade-offs such as price versus safety in purchasing an automobile, quality of life versus longevity in some health care choices, or risk versus return in selecting investments for a child's educational

Consumer Decision Making Assignment

700 words - 3 pages How do consumers choose what products they are going to buy? Do they blindly walk in to a store and choose the first thing they see, or is there a science behind their behavior of buying? This is a question that has plagued researchers for years. Millions of products are bought worldwide every day, but what drives consumers to buy what they do? The book, Consumer Behavior, states that there are four views of consumer decision-making. These views