10 May 2022

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Consumer Decision Making Model

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Academic level: High School

Paper type: Essay (Any Type)

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Pages: 5

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In the business world, the consumer is regarded as king. All operations of a business are geared towards providing consumers with the best experience (Goodman, 2009). Firms strive to participate in the decision making processes that consumers use. There are companies which offer innovative products and others which provide their products at friendly prices. All these measures are aimed at winning the minds and the pockets of consumers. The decision making process used by consumers is the primary subject of this paper. Among other things, the paper offers a description of personal experiences as a consumer and examines how different companies attempt to lure consumers. 

Personal experiences

I am one of the individuals that companies target in their efforts to promote their products. I have participated actively in the purchasing process and my purchasing decisions have been shaped by my experiences. I remember when I bought a television set that was marketed as a solution to most of the concerns that I had about displays. The company promoted the television as a device whose resolution and clarity was unrivalled. I participated in obtaining the television mostly through the Internet. The company operates a website through which customers can place orders and track their shipments. I also took part in the consumption and the disposal of this product. I consumed the television mostly by viewing media. After using the television for a few months, I disposed of it by reselling it. I rely on the internet for most of my purchasing and selling needs. I turned to the internet to find a buyer for the television.

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I was drawn to the television by the special and creative features that it possessed. The manufacturer promised that the television would offer excellent viewing angles and accurate colors. The television was also promoted as a device that offers excellent sound and good picture quality. As mentioned above, I obtained the television through the internet. There are various other methods that I could have used to purchase the television. For instance, the company that sells the television has partnered with local stores which stock the television. I opted for the internet owing to the convenience and safety that it offers. Thanks to the internet, I did not need to visit a store as the television was delivered to my address. While I recognize the efforts that the company committed to easing the purchasing process, I must mention that the television was underwhelming as it failed to live up to the description that it received. I found that the television consumed too much power and the sound quality was poor. I also observed that it did not render colors accurately. These are the reasons that forced me to resell the television. 

Consumer orientation 

Consumer orientation is chiefly concerned with meeting the needs of clients. Companies which have embraced this idea strive to ensure that their consumers are satisfied with products and services. Amazon is one of the companies that appear to have embraced the idea of consumer orientation. In 2015, the company topped the list of firms that offer exceptional customer service (Sauter, Frohlich & Stebbins, 2015). One of the ways through which Amazon demonstrates consumer orientation can be found in its predictive order service. Through this service, the company relies on past purchases made by consumers to predict the products that the consumer will order (Sauter, Frohlich & Stebbins, 2015). The company then makes the product available at a warehouse that is closest to the location of the consumer. This reduces delivery time and serves as a reflection of Amazon’s commitment to customer satisfaction. Amazon also demonstrates consumer orientation through the priority that it places on consumer satisfaction. While most companies place their primary focus on profit maximization, Amazon has set its eyes on consumer satisfaction (Sauter, Frohlich & Stebbins, 2015). It is willing to suffer losses to ensure that customers receive the best service. 

An argument can be made that Amazon has found success in consumer orientation. Evidence for this lies in the position that the company occupies today. As mentioned above, the company is ahead of other firms as regards customer service. The position that the company occupies is a direct result of the commitment to customer service that it continues to demonstrate. The fact that the company remains dedicated to customer satisfaction despite the threat of losses is yet another indication that it has been successful in consumer orientation. Were it that the company had not found success, it would be expected that it would abandon the customer service programs that it has established. Since this has not occurred, it is clear that it has been successful. The behavior of Amazon’s customers is dictated by its customer service programs, the wide range of products that it offers and the values that guide its operations. Amazon has a history of excellence in customer service and is committed to delivering products conveniently (Morris, 2013). This is a firm that prioritizes the needs of its consumers and this makes it easy to understand why it continues to enjoy success. 

The role of the government 

The government plays an important role in the acquisition, consumption and disposal of products. It does this mostly through regulation and monitoring the activities of various stakeholders. My local community has benefited from the involvement of the government. The environment is one aspect of my community that has not received sufficient focus. I think that the government needs to become more involved to ensure that all business activities do not pose a threat to the environment. I have observed that certain practices involving the acquisition, consumption and disposal of products present threats to the environment. For instance, I have noticed that members of my community dispose of electronic waste recklessly. The acquisition and consumption also causes damage to the environment.

While it is true that the government possesses enough authority to intervene in the situation described above, I believe that there is a role that individual consumers can play. I feel that consumers can demand greater accountability from manufacturers as they acquire products. I also think that consumers need to take personal initiative by responsibly consuming and disposing products. For example, instead of disposing electronic waste in open spaces, consumers can dump the waste at designated facilities. I believe that this will go a long way in safeguarding the environment which continues to face the threat of damage. 

In the discussion above, calls have been issued for the government to play a more active role in protecting the environment in my local community. I feel that the government already plays some role but I do not think that it goes far enough. It only encourages people to be responsible and take part in environmental conservation. Such measures as imposing penalties on those who cause damage to the environment hold greater promise to safeguarding the environment. I would urge the government to be more active in environmental conservation. 

Experiences with enterprises 

Consumers relate with different businesses differently. The nature of the relationship is determined primarily by the experience that a consumer has received. Businesses which are committed to customer satisfaction tend to enjoy close and healthy relationships with their clients. The same cannot be said about enterprises that display little or no concern for the welfare of their consumers. I have developed relationships with a number of different companies. To some companies I am a friend while I consider myself a mere customer to other companies. There are also companies which have managed to transform me into a fan. 

My experiences with the company to which I am a mere customer have been rather disappointing. I usually have to queue for long hours to be served. The service is also poor and the prices that the company charges are rather high. I continue to be a customer because the company provides a service that I cannot find elsewhere. I think that I would abandon the company if presented with alternatives. My relationship with the company to which I am a friend is warmer. The employees at this company endeavor to provide wonderful service. This is my primary reason for being a friend to the company. The third company that I have established a relationship with considers me a fan. I would purchase the company’s products irrespective of prices or quality. I am a fan of this company because of the warm service that I receive every time and the fact that I have obtained products from the company since I was a child. I believe that the long history that I have with the company is responsible for the nature of our relationship. 

Decision making model 

Most decisions that consumers make are never random. These decisions are usually driven by clear and elaborate processes. There are models and theories that underpin these theories. Personally, I have relied on models to inform my purchasing decisions. The Nicosia model is one of the models that I have used to guide my decisions. Essentially, this model identifies the different factors that determine the decisions made by consumers (Majumdar, 2010). These factors include the marketing measures instituted by companies. These measures serve as tools for communication between a company and consumers. In the following discussion, this model is applied to a purchasing decision that I made recently. 

The first element of the Nicosia model regards communication. This element is concerned with the efforts that companies put in place to create awareness about a product (Majumdar, 2010). This element is important as it enables a company to inform the public about such issues as the price and features of a product. The communication element played a vital role in a purchasing decision that I made. I made the decision to buy a certain product as a result of a marketing message that I received. This message allowed me to gain awareness about the product and to learn about its features. The messaged marked the first stage of the purchasing process. 

The communication stage gives way to the search and the evaluation of alternatives. At this second stage, the consumer tries to identify alternatives and to obtain more information about the product of interest (Majumdar, 2010). After being informed about the product mentioned above, I set out to identify alternatives. I conducted an internet search of the product and other substitutes. The search was intended to provide me with options and to confirm that the product was the best in its class. 

The second stage described above is followed by the decision making phase. At this phase, the consumer determines whether to purchase a product or not (Majumdar, 2010). If after being informed and conducting a search and evaluation the consumer is satisfied, they proceed to buy the product. Otherwise, the consumer refuses to purchase the product. This third stage was part of my purchasing process. Through the internet search, I learnt that the product that I wished to purchase would be a worthwhile investment. I therefore decided to purchase it. The fourth and last stage of the model involves the consumption of the purchased product. 

In conclusion, the decisions that human make are usually guided by certain principles and processes. This is true for purchasing decisions that consumers make. Consumers usually examine alternatives carefully before selecting a certain product or service. There is need for companies to understand the decision making processes of consumers. This will allow them to anticipate the needs of their clients and ensure that these needs are met. There is also need for companies to embrace consumer orientation. Such firms as Amazon continue to reap huge benefits as a result of the focus placed on customer satisfaction. Consumer orientation is undoubtedly the key to business success. 

References

Goodman, J. A. (2009). Strategic Customer Service: Managing the Customer Experience to Increase Positive Word of Mouth, Build Loyalty and Maximize Profits. New York City: AMACOM. 

Majumdar, R. (2010). Consumer Behavior: Insights from the Indian Market. Delhi: PHI  Learning Pvt Ltd. 

Morris, T. (2013). What makes Amazon Customer Service so Satisfying. Retrieved 7th January 2017 from http://www.parature.com/amazon-customer-experience/  

Sauter, M. B., Frohlich, T. C., & Stebbins, S. (2015). 2015’s Customer Service Hall of Fame. Retrieved 7th January 2017 from http://www.usatoday.com/story/money/business/2015/07/24/24-7-wall-st-customer-service-hall-fame/30599943/  

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StudyBounty. (2023, September 16). Consumer Decision Making Model.
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