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
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The relative influence of these information sources varies with the product and the buyer. Generally, the consumer receives the most information about a product from commercial sources-those controlled by the marketer. The most effective sources, however, tend to be personal. Personal sources appear to be even more important in influencing the purchase of services. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer. For example, doctors normally learn of new drugs from commercial sources, but turn to other doctors for evaluative information.
The consumer’s awareness and knowledge of the available brands and features increases as they get more and more information. In designing marketing mix, a company should have the objective of making the target customers aware of its brand. Consumers’ sources of information should be carefully identified and the importance of each source should also be assessed.
Companies benefit from an understanding of consumer search in many ways. Companies want to know how much they should charge in order to maximize their profitability. They also need to know how much attention they should give to the prices charged by competitors in setting their own price. Consumer
Professor John Maule from the University of Leeds describes new research into the way that consumers choose a product.
Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless
Every person is a consumer in some way or another. Maybe it’s fuel for the automobile that is used to reach work, or maybe it is electronics such as iPad, mobile phone, or any other good or service. Prior to making most any purchase, individuals have to make a decision by doing some type of cost/benefit analysis. For example, just buying a loaf of bread can be difficult as there are so many choices of brands, types, and prices. Depending on what you will use the bread to hold, a hot-dog bun maybe the right choice, but then a decision has to be made if it is to be white or wheat. Wheat may taste better, but is it worth the dollar price difference? Another example would be using an internet site such as Angie’s List to search, select and schedule a service.
As a consumer, I find that the consumer decision making process is a great help in choosing for the right product which gives a consumer the greatest satisfaction. One of the latest scenarios where I applied this process into my product purchases was buying a
Consumers have preferences about the goods they consume. Therefore, when faced with a choice of goods, the consumer must decide
Once there is the decision to consume or purchase good s or services the common factor then becomes the need for that product which is at times evaluated based on attainability and price. In many situations if consumers are not motivated by the need to purchase then the possibility lies that they will not purchase. There may be different justifications that consumers internalize when making the decision to purchase a particular product at its given price. Different decisions supports the need to purchase a product such as
• Purchase decision : The consumer purchase base on factors such as expected income, expected price, and expected product benefit. So the Porsche’s customer will be star to purchase without thinking because all of them are in the Porsche, because the car is the mirrors themselves-self and the benefit of Porsche is non-stop in the vehicle.
Demand in the wireless industry is determined by the aggregation of individual mobile carriers through the number of wireless subscriptions. Economists all agree that price for a service is an important factor in the decision making for consumers, however it is definitely not the only factor and may not always result in the deciding outcome. Based on pricing, microeconomics can estimate and forecast with plausible accuracy what a consumer may pay for and how much of that service will be purchased.
Consumer behavioural models describe the decision-making or choice process of consumers. Comprehensive models of consumer’s behaviour include Nicosia model13, Howard Seth model14, Sheth family decision making15, Bettman information processing model and the Seth-New-Gross model16.
The first stage of the consumer decision process is need/problem recognition. Most people who are looking for a diet see a need to please themselves and need change physically. When looking at a diet consumers are looking for something that is functional and can change them. The marketers can influence my decision by initially being perceived as something that I need. Information is the next step in deciding what to get based on the consumer’s needs. Internal and external information will be put in to play when deciding where to head next. Internal information is present information and comes from previous experiences. External information is what someone finds when looking for a solution for their needs. Both types of information can be used to market positively and negatively. Marketers can do everything they can to have their product be put in a good light. When consumers look externally markets can give reasons why it’s worth a consumer’s time to use their product with little to no risk. With all information available it’s time to make a decision. Decision can be hard to make depending on the needs of a consumer. There are criteria involved in making a decision and depending on if the product fits the criteria will determine if it will be purchased. The determining attributes are the features most important to the consumer. If the consumer is in need of premade meals compared to making their own that will play a large effect in the decision. Marketers need to show their
1.To describe consumers’ decision making in different market segments when they choose retailers of coffee using CDP.
Based on understanding about customer behaviour, the companies tend to depend on their created marketing mix to promote new products, which consists originally four key elements (4Ps) namely product, price, promotion and place. Today, marketing mix is developed and includes other Ps like physical evidence, processes, and people as critical elements (CIM 2009).
The one striking aspect of all the theories thus far was the portrayal of the consumer as a logical, rational decision maker who made complex choices based on reason, rational thinking and minimal risk-taking. The five cognitive stages that a consumer goes
This is about the way consumers perceive a product or a brand. This recognition of a product or brand is based on two different things: Learning and Perception. These two phrases mean something completely different, but are in fact closely connected when it comes to consumer perception.
Marketing mix is one of the basic and the very important part of marketing plan. It includes all the elements that are important for an organization from manufacturing to sale of the product. It can be considered as the set of marketing tools that blends together to generate a marketing response in the market. Every organization uses this tool to make its marketing plan. Primarily it consists of 4P’s, but now it is extended to 7P’s of marketing. (Jain, 2013)