Consumer Decision making Model Samples †MyAssignmenthelp.com

Question: Discuss about the Consumer Decision making Model. Answer: Introduction Consumer behaviour is the buying tendency of the people who agree to pay a certain sum of money in exchange of some product or service (Ashman, 2015). It is the study of how the consumers of a particular product or service seek, purchase, analyze and dispose of products and services. It is the psychology of marketing- the study is utilised to understand why consumers buy a product in the place of another similar product. Business organisations offer products or services so that they get money in return and grow the business even further. A business organisation operates in an industry or market of the specific product or service or business model that the company has adapted. In order to ensure that the product or service has a unique image in the company it has to device strategic plans, and understanding the trends or consumer behaviour is essential as it guides the company to develop, innovate, diversify etc in order to engage the customers they are targeting (Solomon et al., 2014 ). The strategies that the company formulates impact the customers of the company extensively. The strategies are a source of communication and regarding the products and services that the company is offering. It persuades the way the consumers imagine and perceive, the product and in turn influence the buying decisions (Sparks et al., 2013). The retailer that has been chosen is Amazon Australia; the company is a multinational organisation and is known for the customer centric approaches of business operation. The organisation is led by the visionary and transformational leader Jeff Bezos who has explained in several interviews that the focus of the company is to provide the customers with products and services which are at par with the needs and requirements of the company (Amazon.com, 2018). Consumer decision-making model A consumer avails a product or a service not always out of need or requirement as explained in the Maslows hierarchy of need theory. Apart from the necessities all other products that a consumer buys is based on various factors. Needs develop on the basis of the livelihood of a person and that influences the buying behaviour. Figure 1, shows the model of a simple process- there are input factors such as the efforts that the company makes and socio-cultural impact on the consumer initiates that process of buying behaviour among the people (Ashman, 2015). People get influenced by the marketing efforts of the company and also by the family and friends and other aspects of the society that the customer is in bound (Ashman, 2015). The Amazon website is known to be one of the most user friendly layouts where the customer exactly knows what to do in order to reach the desired product. There is also a list of promotional features in the home page that is cumulated by the website based on the previous purchases. The website tries to understand the preference of the account user and lists a number of items with promotional features. This is one of the ways of communication that the website has with the customers (Amazon.com, 2018). In order to buy a product from Amazons website it is mandatory to make an account with the website. Once you have provided your account details the company also communicates with the help of e-mail or sms. These are some of themarketing efforts of the firm that can influence the buying behaviour of the customer. For example, if a customer has previously bought cosmetic items from the website and the next time he or she logs in they are welcome with an offer on some of the items that the customer have in the wishlist, which may influence the customer in buying the commodity (Amazon.com, 2018). There is a feedback option of the products in the website where the previous customers can post about their experience with the product or the seller; this is also one of the ways in which the customers buying behaviour can be influenced. One of the disadvantages with online retailers have is that they lack credibility if the customer is not sure of the brand of product or the seller then they may be sceptical of buying the item right away. In that case, they will read the comments regarding the product and then make their decision. This is how the society influences the behaviour of buying from Amazon (Amazon.com, 2018). Needs and wants of consumers According to Maslows hierarchy of needs theory, a person has to be motivated to achieve something and these needs are to be attained in a sequence and some take precedence over another. The theory is explained in the form of a pyramid which sets the most basic needs right at the bottom taking a larger space, going upward is the psychological need and then comes the least important need for survival, which are the self-fulfillment needs (Kaur, 2013). The buying behavior of the consumers also can be categorized according to these divisions. Each of the categories is underlined by motivations such as necessity, urge of fulfillment, self-satisfaction as well as extrinsic motivational factors (Kaur, 2013). Recommendation The company should ensure that the product description is authentic and is a little descriptive so that there is little or no scope for miscommunication. Conclusion It can be concluded from the above discussion that consumer behaviour is dependent on marketing efforts of the company and psychological, social and cultural factors. These needs are categorised according to the nature of the product or service and are driven by several intrinsic and extrinsic motivations. References: Amazon.com. (2018).Home page.amazon.com. Retrieved 20 March 2018, from https://www.amazon.com.au/ Ashman, R., Solomon, M. R., Wolny, J. (2015). An old model for a new age: Consumer decision making in participatory digital culture. Journal of Customer Behaviour, 14(2), 127-146. Kaur, A. (2013). Maslows need hierarchy theory: Applications and criticisms.Global Journal of Management and Business Studies,3(10), 1061-1064. Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., Polegato, R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Pearson. Sparks, B. A., Perkins, H. E., Buckley, R. (2013). Online travel reviews as persuasive communication: The effects of content type, source, and certification logos on consumer behavior. Tourism Management, 39, 1-9.