Decision-making – definition and types of decision-making

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Decision-making is a very important part in life. It is also a part and parcel of the business world. We make a variety of decisions every day; so do managers and business owners to run their businesses. Managers make decisions in the best interest of their organisations. So, what is decision-making? What does it mean? Let’s explore it then. Definition of decision-making Let’s first focus on the term ‘decision’. It usually means making a choice between two or more alternatives. Business writers regard decision-making as a process. According to Holt […]

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Decision making unit (DMU)

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Decision making unit (DMU) Business decisions are usually taken collectively. A number of people may be involved in the decision-making process and not necessarily, everyone will have the same power. Someone is the most influential, whereas someone is the least. This piece of information is very useful from a supplier’s point of view. B2B Decision making unit According to Kotler & Armstrong (2009), the decision-making unit of a buying organisation is called its buying centre. It includes all the individuals and units that play a role in the business purchase […]

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Why do customers modify or even postpone a buying decision?

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While a customer’s decision to amend or cancel a buying decision is influenced by a number of factors, one of the main factors is the customer’s perceived risk. According to Kotler et al (2009), consumers may perceive many types of risk in buying and consuming a product. For example: Functional risk: The customer may feel that the product will not perform up to his/her expectations. This feeling reduces the importance of buying the product to insignificance. Physical risk: Physical risk is another important factor to consider. A customer may avoid […]

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5 factors which affect buyer behaviour

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5 factors which affect buyer behaviour There is no doubt that a number of factors may affect the buying decision of a customer. It is very important for marketing managers to understand how these factors work and impact on the decision-making of a customer. Why does a customer buy some particular products? Why does he/she prefer one product to another? A study of some factors will help the readers find answers to these questions. As mentioned above, there are a number of factors that will impact on a customer’s buying […]

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