Purchase Decision

Examples of Purchase Decision in the following topics:

• Purchase

  • During the purchase decision stage, the consumer may form an intention to buy the most preferred brand or product.
  • The purchase decision is the fourth stage in the consumer decision process and when the purchase actually takes place.
  • According to Philip Kotler, Keller, Koshy and Jha (2009), the final purchase decision, can be disrupted by two factors:
  • The decision may be disrupted due to a situation that one did not anticipate, such as losing a job or a retail store closing down.
  • This is also a time during the which the consumer might decide against making the purchase decision.

• Reference Groups

  • Reference groups are groups that consumers will look to for help in making purchasing decisions.
  • Reference groups are considered a social influence in consumer purchasing.
  • They are often groups that consumers will look to to make purchasing decisions.
  • A company might use a celebrity it feels will match its target market to get that market to purchase its product.
  • Reference groups can and do have a tremendous influence on purchasing decisions.

• Buying Centers

  • A buying center is a group of people within an organization who make business purchase decisions.
  • Many people are involved in the daily transactions and the purchase decisions both on the buying side and the selling side.
  • A buying center is a group of employees, family members, or members of any type of organization responsible for finalizing major purchase decisions.
  • Influencers who try to affect the outcome decision with their opinions
  • The chairman of the Hong Kong Stock Exchange is an example of a member in an organization responsible for finalizing major purchase decisions.

• Post-Purchase Behavior

  • Post-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with a purchase.
  • An example of cognitive dissonance is when a customer might feel compelled to question whether he has made the right purchase decision.
  • Post-purchase behavior is the final stage in the consumer decision process when the customer assesses whether he is satisfied or dissatisfied with a purchase.
  • A customer will also be able to influence the purchase decision of others because he will likely feel compelled to share his feelings about the purchase.
  • For example, the customer might feel compelled to question whether he has made the right decision.

• Family

  • Many factors influence purchasing.
  • One way to understand the family's impact on consumer behavior is to identify the decision maker for a purchase.
  • A decision maker for a purchase can be a husband, wife, or even a child, and sometimes decisions are made in collaboration.
  • Often, the decision maker changes based on the type of purchase or the size of the purchase.
  • Describe how family dynamics and the family life cycle can influence purchasing decisions

• Consumer Purchasing Behavior

  • Routine Response Purchasing Behavior: Examples of items purchased include soft drinks and candy bars.
  • Extensive Decision Making Purchasing Behavior: examples include cars, apartments, and electronic equipment.
  • It also needs to check other brands of the customer's consideration set to prepare the right plan for its own brand.Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.
  • Sometimes purchase intention does not result in an actual purchase.
  • The relevant internal psychological process that is associated with purchase decision is integration.

• Lifestyle

  • In consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process for consumers.
  • However, in consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process of consumers.
  • The buyer's "black box" contains the buyer characteristics (e.g., attitudes, motivation, perception, lifestyle, personality, and knowledge) and the decision process (e.g., problem recognition, information research, alternative evaluation, purchase decision, and post-purchase behavior) which determine the buyer's response (e.g., product choice, brand choice, dealer choice, purchase timing, and purchase amount).
  • The Black Box Model considers the buyer's response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem.
  • However, in reality, many decisions are not made in awareness of a determined problem by the consumer.

• What is operations management?

  • For example, if an organization makes furniture, some of the operations management decisions involve the purchasing of wood and fabric, the hiring and training of workers, the location and layout of the furniture factory, and the purchase of cutting tools and other fabrication equipment.
  • If the organization makes good operations decisions, it will be able to produce affordable, functional, and attractive furniture that customers will purchase at a price that will earn profits for the company.
  • In another example, the owners of a restaurant must make important decisions regarding the location, layout, and seating capacity of the restaurant, the hiring, training, and scheduling of chefs and servers, the suppliers of fresh food at the right prices, and the purchase of stoves, refrigerators, and other food preparation equipment.
  • If the restaurant owners make good operations decisions, they will be able to meet their customers' needs for delicious and affordable food that is served in a pleasing atmosphere.

• Decision-Making Units

  • The group of individuals responsible for making a buying decision in a B2B context are labelled the decision making unit (DMU).
  • The group responsible for making the buying decision in companies is referred to as the decision making unit (DMU).
  • Within organizations, major purchases typically require input from various parts of the organization, including finance, accounting, purchasing, information technology management, and senior management.
  • The economic buyer justifies the purchase by linking it to profit.
  • The user buyer - This position influences the buying decision at the user level and decides whether the organization will achieve its financial objectives through the purchase.

• Culture-Specific Nuances of Decision-Making

  • In assessing the current understanding of cultural differences in decision making, it is important to consider first the three decision-making models:
  • With the cultural affects on decision-making in mind, the conditions which influence the direction of a decision provide a clearer picture.
  • Time Pressure - The time available to make a decision can create differences in reaction, as our conditioned decisions differ from are conscious/cognitive ones .
  • Reason - Reason does not always factor in equally among different cultures, particularly pertaining to purchasing.
  • Decision making in different cultures is the result of both the decision-making models and the decision-making factors.