Consumer Decision Making Process

2217 Words Sep 13th, 2012 9 Pages
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
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