Rubinstein's Model Of Consumer Decision Making
After review of models, we can say that they are based on the assumed as main components: a) the existence of the need, b) the generation of the need by the marketing organization, c) motivation that the consumer is in the immediate environment, d) internal information (memory) and external, e) structure of imperfect preferences and f) the implicit cognitive process. Rubinstein (1998) presents the following theoretical statements to model the process of decision-making with bounded rationality. Assumptions: 1. Decision under uncertainty, 2. Economic agent has a bounded rationality, deliberative agents 3. Processing of information relating to limitation on the information and on the cognitive ability of calculation. 4. The structure of preferences …show more content…
For the model which will then be developed, shall be required of this representative consumer that we've already endowed with certain characteristics of the decision of the consumption behaviour. Then following the model of Rubinstein (1998) presents the model with cognitive bias. Since the structure of information strongly influences the characteristic of its decision, variant introduced here is a new information structure which includes not only price but also quality and brand effect. The model focuses not on empower decision taker to make an optimal decision since there are restrictions on the information that the perceived or information that can be transferred from the moment in which one has access to price information in one of the shops at the moment that has to make the decision. Assumptions: - Set of action A - Set of states , all the sets of possible prices that can be offered in store i. - Probability measure on . - Utility function …show more content…
The individual has strong preferences for the quality. We assume that the search for quality doesn't cost, retailers are coming and that it is indifferent to buy in one or another market. It is assumed that the price differential between a good does not have a significant effect in their budget constraint. The difference between a price and the other is low. Then we have an agent, that you want to buy an asset in one of the two shops at the prices independently distributed . The consumer used a structure of information . We assume positive correlation between price and
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