The Principles and Business Practice

The Principles and Business Practice

Introduction

Every individual whether a consumer or a customer go through the decision making model while making decisions. It is a process experiences by every individual in their daily life activities (Walters,1974, pp.4).The decisions made by the customer or the consumer are always influences by environmental and natural factors (Howard,1977, pp.14). Decision making helps the consumer to make an appropriate decision for him or herself in making a purchase of the product. The decisions made by the customer are totally depended on the type of the information provided to the customer about the product (Blythe,2008, pp.258).The customer's decision is influenced by the exposure of the information customers use decision-making processes and strategies or relevant themselves to the theories or experiences in making a purchase of any product (Solomon,2006, pp.4). Different product caters different needs of the product. The decision may differ due to the features of the product (Fucker, 1967, pp.250). The customer's decisions are also influenced by the motivation, personality, perception, perceived risk, behavioural and cognitive learning and brand loyalty.

Discussion

Question 1

What is decision making?

The process of decision making entitles the selection of an action or course of action. The selected action is categorized from any two or more than two alternatives possibly (Britt, 1970, pp.17). The process is segregated so that the solution could be figured out of the desired problem. An outcome is generated towards the problem (Krishna & Reddy,1999, pp.126). Decision making is one of the essential parts of the modern management. Decision-making is an integral responsibility of the manager (Redman,1979, pp.67). To determined organizational and managerial actions of any organization, the decision perspective should be looked forward. A desired result is achieved through the decision making process.

The consumer-decision making model

Every consumer or customer follow the decision-making process of five stages before making any purchase or taking any decision.

Recognition of the problem/need

The consumer decision making model process starts with the awareness of the problem or recognition of need (Lantos, 2011, pp.57). The recognition of the need is responding to the marketing stimulus. All needs are tend to be influenced by the stimulus.

Searching for relevant information

Once, when the need is recognized, or the problem is identified. Then the consumer step towards the search for relevant information about the need or problem. The search for the relevant data or information heavily depends upon the product or service whose decision has to be made (Hoffman& Bateson, 2011, pp.87). Strong need or problem might require a lot of research than an ordinary one. the information research could be gained from several resources, like, consumer's experience related to the product or service, commercial sources like sales people, retailers of the product, the advertisements of the product, and the public sources that include television, magazines, radio, newspapers or internet (Hoyer & macinnis,2008, pp.229). According to research, an individual consumer or customer is more influences by his confidential sources, like, friends and family while making the decision about the purchase (Lamb & ...