Consumer Behavioural Decision-Making Theory

2.3 Theoretical Literature Review

2.3.1 Consumer Behavior

In promoting of merchandise and services, perception of end-user habit has been significant since, organizations contract with end users who are dissimilar in life. To assist spot what is imperative to the buyer, knowledge of customer conduct is important. This will help suggest the important influences on consumers’ decision making enabling marketers to give goods and services that meet the needs of their target market. Loudon and Bita (1994) gave this definition of consumer behaviour as “the physical activity and decision process people engage in when evaluating, acquiring, using or disposing of goods and services” Consumer buying behavior refers to the buying behaviour of last consumers—people and households who buy goods and services for personal consumption (Kotler et al, 2008). The study of consumer behaviour focuses on how people make decisions to spend their available resources (time, money, effort) on consumption related items (Schiffman and Kanuk, 2004). Customer conduct, then includes ideas generated from economics, history, psychology, sociology and anthropology. 2.3.2 Consumer Decision Making Theories

According to

The rational decision maker depicted by Normative Decision Theory challenged by Simon (1955) who argued that decision makers have only bounded rationality and is seeking to satisfy. He also argued that Normative Decision Theory puts high demand upon the choosing organism and those consumers do not necessarily search for all available alternatives, but choose the first possible alternative that exceeds a given amount of payoffs. However, he also proposed classic satisfying strategy that employed by decision makers in complex choice situations (Shao,