Consumer Decision Making Process Case Study

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Task 1.1: The Consumer decision making process: Problem recognition The decision making process triggers when a consumer has a need or a problem which has to be satisfied/ solved – (i.e. Consumer needs to purchase a new kitchen appliance) The black box theory helps to understand this process and shows the interaction between the stimuli, consumer characteristics and response, and the decision process. The Black box theory This theory is split into two stages: 1. The Environmental Factors – the Marketing Stimuli (product, price, place and promotion) are strategically prepared and applied by the marketing team, whilst the Environmental Stimuli are influenced by the social factors based on economical, technical, political and cultural circumstances.…show more content…
Consumers set their own criteria which have to be met by the product’s benefits; this is called evaluative criteria which can be both tangible and intangible. For example if a consumer needs to purchase a kitchen appliance the tangible criteria would be; the product performance, durability and within their price range, whilst the intangible criteria would be the brand with a good after sales reputation and from a trustworthy organization. Consumers recollect evaluative criteria from their own memory but, it can also be formed during the search process when consumers acquire information on different products being offered on the market, and set their criteria for the evaluating process. Although Search and evaluation are two different steps in the decision making process, they can take place concurrently. In the black box theory the two steps come sequentially, however they do not always occur that way. One has to bear in mind that when consumers are searching for a product they are simultaneously evaluating and comparing benefits and attributes. In reality consumers evaluate and search until they find the best solution for their…show more content…
In many cases the organization decision making unit is made up of various people including finance, accounting, purchasing, Information & technology management and senior management. All people involved can influence the decision. In the business to business, buying decisions are made in groups with each member having different needs and criteria to be satisfied. (E.g. the main objective of the end user is to have a product which is user friendly and easy to use whilst the finance manager would be more interested on the return on investment and the payment terms. The Ice breaker stage in the business to business sales cycle is important for the sales people to be able to identify each member of the DMU and their needs. With this information in hand one can prepare a customized presentation to be able to match each member’s criteria. With such preparation one can involve more people (e.g. technical personnel) to help perform a better presentation. Need identification – having different people from different sectors in the DMU entails having various needs to be satisfied such as: • I.T. manager – After sales support offered • Finance Manager – Credit terms /
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