Decision Making Process

Topics: Decision making, Pareto distribution Pages: 14 (3619 words) Published: December 29, 2010
Question 1. Give the example of a recent purchase of an expensive article (hand –phone, camera or notebook computer).Explain your decision –making process and what source of information did you use in making the decision to buy the article?

The decision making is the very important in our business environment because as we know many company are trying to get rare resource so we cannot do mistake in decision making to buy something expensive things .As a manager, the manager need to know how to decide the decision and need to think continuously about his decision .The manager want to the computer for his company so that he need to know the buyer decision process and need to use the process. Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. In the decision process need to imply five stages with every purchase but sometimes we can skip and reverse the some stages because we need to buy many purchase. The marketers need to concern in buying process rather than only on the purchase decision.

In the decision making include five stages .These five stages are –

1. Need recognition

Need recognition occurs when there is perceived difference between an individual’s ideal state and reality. In most situations the Initiator is also the User or Buyer.  Users are inclined to identify the need for new solutions (i.e., new products) while Buyers are more likely to identify the need to re-purchase products.  But marketer should also understand that more companies are replacing human involvement in re-purchase decisions with automated methods, thus making it more challenging for competitors to replace currently purchased products.   In straight re-purchase situations, whether there is human intervention or not, the purchasing process often jumps from Need Recognition to Purchase and little search activity is performed. The needs can be assume as normal needs become a high level and strong enough to drive behavior. The needs also can be triggered by the external stimuli as the advertisement and friends.

2. Information Search

The above stage, the consumer need to search more information about the product or purchases. The consumer options available and consumer need to search about the product, price and quality. Two types of information search include .There are external and internal.

The external exist - Most often used in frequent purchases. The potential buyer recalls memories and previous experiences with a product or with the company.

The internal exist - Most often used when there is a lack of prior experience with a product. The risk of making a wrong purchase decision is greater.

The consumer can obtain information from any of several sources. These include personal sources, commercial sources, public sources and experiential sources.

1. Personal sources such as –friend, family and co-workers. 2. Market such as –commercial, print advertisement, salespeople and websites.

3. Public sources such as –media reviews, magazines and consumer reports.

4. Experiential sources such as – handling, examining or using the product.

Generally, the consumers receives the most information about a product from commercial sources .Personal sources is the most effective source hat can be legitimize or evaluate product the for the buyer. If the consumers know the information as much as they can, they can aware and knowledge of available brands and features. Marketer should need to understand consumer’s source of information and the important of each source.

3. Evaluation of Alternatives

The consumers can their information as know as they can and they can even chose the better band because of their information. How consumers go about evaluating purchase alternatives depends on...
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