Is Price the Only Factor That Determines a Buyer's Decision?

Topics: Price, Marketing, Money Pages: 1 (399 words) Published: April 14, 2012
When consuming products and services, customers pay attention to several factors to make sure that they have made a sensible decision. Perhaps, the very first thing to be taken into account, under some circumstances, is price. However, it should not always be the sole consideration for purchasing decisions. From my point of view, apart from price, there are other determinants that can have a strong impact on a buyer’s decision, namely quality, buyer psychology and commitments that a firm offers its customers. To begin with, it can be said for sure that for most wise consumers, the quality of products or services is remembered long whereas the price is soon forgotten. When people make up their mind to consume something, they definitely want it to be worthy of their money. To be more specific, they are willing to have their ideal products although their prices can, sometimes, be very costly simply because of their durability. Long-lasting products are preferable, especially for careful consumers who are always in pursuit of the stability of the products. From another context, in terms of buyer psychology, many customers are not afraid of high cost to own certain products since not only do the products serve their needs, but they also help them to express their fashion-consciousness and status. For example, fashionable clothes enjoy increasing demand from celebrities every year though the producers set high prices. In addition, pricing low does not always work, even it can be counter-productive because consumers may assume that the products are below normal standards or the firm is going bankruptcy, which may lead to the damage of the company’s image and prestige. Last but not least, commitments to customers that a producer makes are also of great importance. These commitments usually come along with guarantees or after-sales services. Customers may pay higher amount of money for the products, however, in exchange, they are certain that they can have substitutes or...
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