Buyer decision processes
In general there are three ways of analysing consumer buying decisions. They are:
- Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances.
- Psychological models - These models concentrate on psychological processes such as motivation and need reduction. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences.
- Consumer behaviour models - These are practical models used by marketers. They typically blend both economic and psychological models.
A general model of the buyer decision process consists of the following steps:
- Want recognition;
- Search of information on products that could satisfy the needs of the buyer;
- Alternative selection;
- Decision-making on buying the product;
- Post-purchase behavior.
