1. The decision making process Economics is a series of choices

2. 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

3. 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?

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

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

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

7. Buyer Decision Process
IDENTIFY THE CHOICES
What are your alternatives?

8. 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

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

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

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

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