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2. The brand can also have a product failure if the consumers do not like the taste.

The author of the book “The Mind of the Market” is Dr. Michael Shermer, he has strong credibility and his writing is enjoyable to read making him the perfect guide to help navigate the world of the market and why humans can sometimes be irrational about money. “Dr. Shermer has received his [three degrees;] B.A in psychology from Pepperdine University, M.A in experimental Psychology from California State University and his Ph.D. in the history of science from Claremont Graduate University.” (Michael Shermer). He is also a New York best seller for multiple books, was a professor, has been interviewed for documentaries and television shows, and he regularly writes essays, editorials, and reviews for magazines and other publications.

In the journal (classical conditioning of consumer attitudes: Four experiments in an advertising context) page number 334-349, writer has stated that the behavior of a consumer is towards the product matters. (Elnora W. Stuart, 1987). And classical conditioning matters a lot. He proves by providing multiple examples.

Explain in terms of the MRS why the consumer would not choose either combination A or B.

Once a choice has been made the consumer purchases and consumes or uses the product or service (Grewal, p. 186).

3) Individuals are willing to pay more for an exclusive product in order to impress others. The person that is impressed would find value in that item.

In today 's society, the rush of supply and demand runs the ever-living world that many people call home. It runs so well that many have found ways to use this tool and create a mountain of riches that most will never see. To understand this mountain and incorporate a successful plan, society needs to understand how this mountain was built. It begins with a covering known as economics that leads to a multitude root system known as microeconomics only to be fed by the morsels of supply and demand. Though what seems simple in building this mountain, many factors exist waiting for their chance to cause destruction. However, to understand our quest to the top, consumers must understand the clues that are defined as economics,

|likely to affect a customer’s purchasing decision? |Does this meet my perception of value for money on the basis of product, |

15. If a manufacturer is concerned with the breadth of the assortment its distributor can provide customers, the manufacturer is

Consumer perception applies the concept of sensory perception to marketing and advertising. Just as sensory perception relates to how humans perceive and process sensory stimuli through their five senses, consumer perception pertains to how individuals form opinions about companies and the merchandise they offer through the purchases they make. Merchants apply consumer perception theory to determine how their customers perceive them. They also use consumer perception theory to develop marketing and advertising strategies intended to retain current customers -- and attract new ones. Psychologist Daryl Bem originally developed this theory of attitude formation in the late 1960’s and early 1970’s when he argued that people sometimes analyze their

He begins with stating that consumers act with purpose, regardless of the nature or ethics of that purpose. Jackson mentions why Ross Gittins told his readers that Professor Frank of Cornell University demonstrated that consumers are frequently irrational in the choices they make. Gittins describes if consumers see a radio selling for $25 but they know the same radio is selling for $20 in another store, they will go to the other store and by the cheaper radio. Moreover, if a television is selling for $500 in one store but in an alternative store it is selling for $495, most people will simply choose to pay the $500. Frank believes this action is irrational because consumers are weighing the $5 dollars against the price of the product instead of against the benefit of saving $5. However, Jackson states that this kind of consumer behavior is neither irrational nor crazy, it is completely rational. The error in the study was the confusion of mixing the $5 with the marginal purchase when it is in fact part of it. The costs to the consumer regarding the two radios in terms of money is not $5 but actually $25 or $20. The actual cost is what the consumer sacrifices in buying one of these radios, such as, the alternative goods he would otherwise have bought, what economists call opportunity costs. Therefore, when choosing between the two radios the consumer is really choosing between the values of the goods he must sacrifice to obtain the radio and the same principle applies with the

reactions to this, and consumer opinions about the product. “An analysis of the external environment is a

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).

Consumption is a process of acquiring, using and disposing of goods and services. Emotions play a very large role in consumer behavior. This behavior and emotions are affected and created by the society and the culture in which the consumer lives. For example, an American may approach the purchase of a costly car with relatively less pressure than a person in a developing country where a car could be a high unaffordable luxury. The customer will comprehend brands, offers and the meaning of the product based on the understanding that he or she has of similar brands and their experience by analogy or by hearsay from peers and form an opinion. For example a new soft drink from Pepsi may not be very informative in its advertisement but that it is from the stable of PepsiCo makes the users of Pepsi brands take it in without much research. Such an opinion is not based mostly on the complete set of facts. Where there are many alternatives or the information is scarce the customer has to make a lot of effort or 'high effort' to reach a decision and such a situation could be a turnoff. On the other hand the customer may not be inclined to devolve deep into facts in case where the brand value is established and may make a decision on little or even sometimes no information. (Hoyer;

If the above step satisfies the consumer, it may result in a positive response, with a decision to buy the product otherwise the reverse may occur.