The paper 'Consumer Decision Making and Internal Factors' is a great example of a Management Case Study. Consumer Decision Making basically refers to the process by which a consumer identifies his or her need, collects relevant information, evaluates possible alternatives, and goes ahead to make a purchase decision basing on the information collected. According to Perreau, (2014), the actions taken by the customer or consumer for that matter, is highly dependent on various factors such as economic factors, and psychological factors. Environmental factors such as group, cultural, and social values also play a role in influencing the decisions made by a consumer.
Getting to know your consumer decision-making process is exceptionally valuable for all kinds of businesses no matter how established business is. Developing a successful marketing strategy that targets consumers is determined by how an individual understands the consumer decision-making process. Consumers normally make a decision to buy something because they have a need. This is where marketing professionals should come in and make changes to their products or services in order to get the attention of the consumers.
The job of the marketer is to make sure that an inactive problem is made active. The factors that in most cases affect the way consumers make decisions when they want to buy something are factors that they cannot control but play a major role in affecting decision-making process; such factors have a direct or indirect impact on how people live and how they consume (Perreau, (2014). A consumer is the main cause and purpose of all the marketing and production activities. Consumer behavior is basically the examination of when, how, why, and where consumers do or do not purchase a product.
According to Wright, (2006), the study of consumer behavior is based on consumer buying behavior, with the customer playing the 3 distinct roles of the buyer, user, and payer. Research has shown that those successful companies existing around the globe had a better understanding of the entire process of consumer decision making. Experts in the field face challenging situations because consumer behavior is quite difficult to predict. Factors Influencing Consumer Behavior Physiological factors – basic needs Cultural factors – beliefs, values, arts Personal factors – age, personality, lifestyle Economic factors – disposable income, consumer credit, size of the family, propensity to consume Social factors – groups, status, and roles, family Every single day, people are overwhelmed with decisions, small and big.
Getting to know how different people make their choices is a field of cognitive psychology that has made experts to divert their attention in that direction. There are quite a number of theories that have been developed to try to give an explanation of the way people make their choices when in need to make a purchase and what kind of factors play a role in their decision-making process in the present and future (Wright, 2006).
According to Wright, (2006), quite a number of factors play a role in the consumer decision-making process and they comprise of past experience, cognitive biases, age, and individual differences, belief in personal relevance, and intensification of commitment, affect the way consumers make their decisions. Therefore, getting to know the factors that play a role in the decision-making process is crucial especially in the process of trying to understand what decisions are likely to be made.
Heuristics play the role of being a framework where satisfactory decisions are made swiftly and with ease. There are a number of heuristics that have been developed to explain the process of consumer decision making.
Perreau, F. (2014). The 4 Factors influencing Consumer behavior.
Wright, R. (2006). Consumer Behaviour. Bedford Row London: Thomson Learning