Essays on Consumer Decision-Making - the Handpresso Situation Case Study

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The paper 'Consumer Decision-Making - the Handpresso Situation" is a good example of a management case study. Consumer decision making refers to a consumer's choice that he or she makes between two available products or services. Peter and Olson (1999) have stated that consumer decision-making concerns between a consumer's final decisions to buy one of the products between two available alternatives. Of all the research that has been done so far, it has been observed that the focus has largely been on cognitive processes. Consumer decision making is a complicated process and a number of factors, both internal and external, are supposed to affect a consumer's decision-making capabilities.

The final decision results on account of a series of actions that are either internally or externally initiated by the consumer (Erasmus et al. , 2001). It refers to the steps a consumer takes in order to decide in favour of a particular product. The decision to but in the first place is need-driven, which means unless the consumer has a desire or a need for a given product, he or she is unlikely to consider that product in the first place.

Both economical and psychological factors determine the actions a consumer takes on his part. Klein and Yadav (1989) have argued that certain environmental factors stemming from cultural, social and group thoughts are largely accountable for the type of decisions consumers make. Consumers are viewed as impulsive, irrational and passive in the psychological aspect (Zaichkowsky, 1991). Rational shortcuts, presume some psychologists, are used by some consumers to reach decisions to purchase some products. Such psychologists are of the opinion that such consumers limit their information to recall and handle only and thus they are not perfect decision-makers. One theory that has been propounded on consumer decision making is called the utility theory, which means consumers make such decisions that enables them to measure expected outcomes.

Given that such consumers estimate probabilistic outcomes means that they work on rational lines to make their decisions. The decisions that maximise their well-being are the ones that they take.


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