BUS FPX 4024 Assessment 1 Consumer Decision-Making Model
Phillip March 6, 2024 No Comments

BUS FPX 4024 Assessment 1 Consumer Decision-Making Model

BUS FPX 4024 Assessment 1 Consumer Decision-Making Model

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Capella university

BUS-FPX4024 Customer Behavior

Prof. Name

Date

Consumer Decision-Making Model

Consumer Behavior Within a Complex Purchasing Decision

Consumer behavior encompasses a series of significant actions that individuals undertake to address or fulfill real demands. When consumers are driven by needs, a process unfolds wherein they seek appealing solutions to satisfy those needs. This process involves multiple psychological actions such as thinking, feeling, and behaving, ultimately leading to the creation of value. Successful completion of this process generates sufficient value to meet the initial demand (Babin & Harris, 2017).

The Rational Decision-Making Model delineates the steps involved in making rational decisions. These stages aim to enhance decision quality by mitigating the influence of biases, false equivalencies, and overreactions. The steps include:

  1. Determining whether a problem or opportunity exists
  2. Information gathering
  3. Investigating the situation
  4. Creating alternatives
  5. Considering alternatives
  6. Making a decision on a preferred option
  7. Taking action in response to the decision

This model confers the benefit of providing structure and discipline to the decision-making process, ensuring comprehensive consideration of influencing factors (Higson, 2021). The guide “Making Better Decisions” extensively covers this approach.

Consumer Decision-Making Model Purchase

Recently, I embarked on the daunting task of purchasing windows for my home. With a total of 16 windows needing replacement, I anticipated a considerable expense. The initial step was to ascertain whether the project fell within my budget, prompting a preliminary inquiry with a window dealer for a rough estimate (1. Determining whether a problem or an opportunity exists).

Subsequently, I researched local companies and evaluated their performance reviews (2. Information gathering). Upon completion of this research, appointments were scheduled with multiple companies to solicit quotes (3. Investigating the situation). Due to the challenges posed by the COVID-19 pandemic, obtaining appointments took over a month, with only three out of five companies providing estimates (4. Creating alternatives).

BUS FPX 4024 Assessment 1 Consumer Decision-Making Model

After receiving and scrutinizing all quotes, a comparative assessment was conducted, considering factors such as price, availability, installation date, and warranty (5. Considering alternatives). Additionally, consumer reviews on platforms like Yelp and Google were revisited (6. Making a decision on a preferred option). The decision was made to select the quote with the lowest cost, factoring in the brand/style of windows and the offered guarantee, alongside favorable reviews. This decision was communicated to all companies, with one offering to match pricing, albeit without perceived benefits (7. Taking action in response to the decision).

Heuristic decision-making serves as a mental shortcut for rapid judgments and problem-solving. While effective in expediting decisions, this method was not pertinent to my window purchase scenario. Similarly, the OODA loop, a decision-making process emphasizing quick adaptation, did not align with the nature of my decision-making process (Lewis, 2019).

How the Decision Process Influenced Consumer Behavior

The consumer decision process aids marketers in understanding how customers progress from product awareness to purchase. This comprehension enables the formulation of effective marketing strategies tailored to guide consumers towards acquiring products or services to address their needs (Millwood, 2021). Consumer behavior, drawing from various disciplines including psychology and economics, has witnessed shifts during the COVID-19 pandemic.

According to Numerator.com, in-store shopping declined significantly during the pandemic, with consumers resorting to larger online purchases. Despite a gradual return to physical stores, caution prevails among consumers, with shopping patterns influenced by vaccination status and pandemic experiences (Foong & Carsell, 2021).

References

Babin, B. J., & Harris, E. (2017). CB (8th Edition). Cengage Limited.

Foong, C., & Carswell, W. (2021, June 16). The COVID-19 vaccine: Summer outlook on consumer behavior. Numerator. Retrieved October 21, 2021, from https://www.numerator.com/resources/blog/covid-19-vaccine-summer-outlook-consumer-behavior.

Higson, P. (2021, May 7). Rational decision making model: Structured decision making. The Happy Manager. Retrieved October 21, 2021, from http://the-happymanager.com/article/rational-decision-making-model/.

BUS FPX 4024 Assessment 1 Consumer Decision-Making Model

Lewis, S. (2019, June 28). What is Ooda Loop? – definition from whatis.com. SearchCIO. Retrieved October 21, 2021, from https://searchcio.techtarget.com/definition/OODA-loop.

Millwood, A. (2021, July 22). Understanding the consumer decision-making process. Yotpo. Retrieved October 21, 2021, from https://www.yotpo.com/resources/consumer-decision-making-process-ugc/.

Foong, C., & Carswell, W. (2021, June 16). The COVID-19 vaccine: Summer outlook on consumer behavior. Numerator. Retrieved October 21, 2021, from https://www.numerator.com/resources/blog/covid-19-vaccine-summer-outlook-consumer-behavior.