In the research undertaken, the specific objectives revolve around the presentation of the different issues and factions that can affect the decision-making process of the consumers in their choice of products and services available in the market…
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To be able to answer the question regarding the rationality of the choices made by the consumers, it is important to explore the issues related to the decision-making process of the consumers. There are different internal and external factors that can affect the choices of the consumers.
The internal factors of a consumer include factors in his or her psychological core such as motivation, ability, and opportunity; exposure, attention, and perception; knowledge and understanding; attitude formation and change, memory and retrieval. These factors comprise the core values of a consumer which can affect the decisions that he or she makes. In addition to these factors, the external aspects or the consumer’s culture also contributes to the choices made. The external parameters are composed of the consumer diversity, the social class and household influences, the psychographics or the values, personality, and lifestyles, and the social influences. Through the interaction of the internal and external factors, the decision-making process can be completed....
The problem can be equated to the need of a consumer which can only be answered by a particular product or service. This need also dictates the possible outcome of the decision-making process. The needs of a consumer can be defined by the necessities of the daily existence (Mullen and Johnson, 1990, p. 91). One paradigm that presents the basis of a consumer’s needs is the Maslow’s hierarchy of needs which defines the consumer behavior as an effect of the human needs. The said needs then are considered as “underlying factor of consumption” which are classified into physiological and psychological needs. Physiological needs are for survival thus considered basic and found at the lowest level of hierarchy. This is followed by another physiological need which is the safety needs such as shelter and insurance. The next levels consecutively comprise the psychological needs such as belongingness and love needs; need for esteem; and self-actualization needs (Jansson-Boyd, 2009, p. 119). By tapping any of the said needs different companies and business can generate profits. Although this is one of the basic factors, the consumers’ needs are only considered as one of the many factors that contribute to the complicated web of interaction to come up with the client’s choice. Actual Process of Decision-Making It is important to consider that the said needs are the stimuli that can lead to the decision of the client to buy a particular product or avail a particular service offered. Once the need of the client had been recognized, it leads to the second level of the decision-making process which is deciding whether to buy a product or not. It is important to consider that the act
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(Do Consumers Really Make Rational Decisions Essay)
“Do Consumers Really Make Rational Decisions Essay”, n.d. https://studentshare.org/business/1390793-pool-of.
Individuals therefore interact with each other in manner wherein exchange between them yield maximum individual utility. The overall interaction of the economy therefore is also based upon best allocation of resources and their optimal use. This optimal use can only be achieved if individual decision making is based upon gaining maximum utility and where marginal benefit of making a decision is greater than marginal cost.
Americans are fed up with the traditional brands since they are using the same product over a period of time. For example, McDonalds is one of the favorite food brands for many of the Americans for many years. McDonald is providing the same taste over a lengthy period of time to its customers without much diversification in its product range.
To answer this puzzle Diamond relates it to individual foibles and issues of group dynamics, proposes various factors like failure to anticipate a problem, failure to perceive it, failure to work towards solving it, or alternatively, not being able to resolve the problem despite knowing all about it.
The main conclusion of the work is that despite the fact that rational choice theories are widely used at present for the explanation of various international processes, their application is in many terms limited as soon as the decision appears to be irrational.
Substituted Judgment- this is a question of how a particular decision is depending on how individual may have decided if she/he was totally competent. Personal autonomy following individual's wants or preferences is of a priority value.
The decision to quit from my employment position as a senior accountant and engaging into private practice which involves offering auditing services.
Perfect rationality implies that these decisions are made in a way that maximizes the gain on every pound spent. This rarely happens. Buyers characteristically make many purchase decisions on an almost daily basis.
The author casts light upon the peculiarities of the decisions made by consumers. The author also provides the idea of Jansson-Boyd who mentioned that researchers show that “it is not as simple as saying that consumers are or are not rational”. Hence, there are many factors which contribute to decision making process.
The race is usually existent to divide assets, similar to the caste system. The developed the questionnaires since the race was a very sensitive issue in the community. The conversation made was relaxed in order to insist a frank and leisurely situation. Race still has a profitability state in every region in all states.