The decision making process Economics is a series of choices

Buyer Decision Process Every time a consumer makes a purchase, they go through a version of the decision-making process. It changes depending on: Frequency of purchase Amount of investment Familiarity with product

How would you go about buying . . . . A loaf of bread? A Car? With a Partner discuss . . . How would you go about buying . . . . A loaf of bread? A Car?

Economic Decision Making the science of decision making … the study of choice… ‘Economics’ evaluates relative cost benefits of each alternative

Decision making weighs the costs and benefits of alternatives identifies the real or opportunity costs of a decision

Buyer Decision Process PROBLEM OR NEED RECOGNITION My car has died!

Buyer Decision Process IDENTIFY THE CHOICES What are your alternatives?

Step Reduce feelings of uncertainty by acquiring IDENTIFY THE CHOICES What are your alternatives? Reduce feelings of uncertainty by acquiring information (lower perceived risks!) Advertisements Product Literature Salespeople Friends and Family Product trials Consumer Reports Social Media/Reviews

EVALUATION OF ADVANTAGES AND Buyer Decision Process EVALUATION OF ADVANTAGES AND DISADVANTAGES of Each Choice Lots of storage Performance Variety of colors Safety

Buyer Decision Process MAKE A DECISION Purchase Decision and CHOOSE I’ll take that one.

Buyer Decision Process REVIEW/EVALUATE YOUR DECISION- Consumers do a Post Purchase Evaluation Cognitive Dissonance Satisfaction or dissatisfaction Aim to DELIGHT

agenda Review Consumer Decision Making Reminder: Assignment due tomorrow Team Activity: Metrocity Consumer Decision Making