Consumer Decision Making

Consumer Decision Making

1. Consumer Behavior

   • value is what you get minus what you give up.
     • Purchases are made based on perceived value
       • Utilitarian value
       • hedonic value.

2. traditional buying process

   • (1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) postpurchase behavior

3. All consumer buying decisions generally fall along a continuum of three broad categories

   • routine response behavior, limited decision making, and extensive decision making
     • Goods and services in these three categories can best be described in terms of five factors:
       • Level of consumer involvement, Length of time to make a decision , Cost of the good or service, Degree of information search and Number of alternatives

4. Factors Determining the Level of Consumer Involvement

   • Previous experience
   • Interest
   • Perceived risk of negative consequences
   • Social visibility

5. Factors Affecting Consumer Decision Making

   • Cultural factors
   • Social factors
   • Individual factors
   • Psychological factors