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 May 12, 2025

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Q1:How do consumers make decisions?

Solution:

Consumer behavior is defined as a procedure when people or a person choose, buy, use a commodity or a service to satisfy their wants (Solomon, 1998 as cited in Nguyen & Gizaw, n.d.). The customer’s decision-making behavior is affected by intrapersonal, personal and psychological reasons. The behavior of the consumer is affected by intrapersonal reasons like relatives, friends, colleagues, social status, etc. The behavior of the consumer is also impacted by personal reasons like economic conditions, the age of the consumer and routine. The psychological reasons that affect consumer behavior like attitudes, perception, motivation and many more (Lautiainen, 2015). There are three kinds of purchasing behavior; (i) Routinised Response Behavior: the customer has some experience before purchasing a good and have prioritized the brand (ii) Limited Problem Solving: the consumer has some expertise but haven’t prioritized the brand (iii) Extensive Problem Solving: this occurs when the customer doesn’t have any experience about a product (Murali, 2013).

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According to Babutsidze (2007), the consumers also make their decisions through communication that is that when the individuals hear some review about some product that they are interested in, they will make their decision as they just needed the confirmation of buying that product. The data communicated between consumers is like a review that means a personal assessment of a good. The behavior of the customers frequently changes depending on their expertise with the commodities that the customers want to buy and it also depends that the commodity that the customers want to buy is either long-lasting or not.

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References:

Babutsize, Z. (2007), ‘How Do Consumers Make Choices? A Summary of Evidence from Marketing and Psychology’, 5-22, doi: p/unm/unumer/2007005.html

Lautianien, T. (2015), ‘Factors affecting consumers’ buying decision in the selection of a coffee brand’, 4-33, doi: 38124382.pdf

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