How And What

Decision-making – definition and types of decision-making

By: Marjana Chowdhury | Tags: Consumer Behaviour

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 […]

The decision making unit

By: M Rahman | Tags: Consumer Behaviour

Consumer buying decisions are often taken by a single individual, while organisational buying decisions are the opposite. A number of people may play different roles in organisational purchase decisions. Therefore, it is very important for the marketers to identify and understand the composition of the buying group. In fact, a framework to do that is the decision making unit. What is the decision making unit (DMU)? The decision making unit is actually a team of individuals who take part in organisational buying decisions. According to BPP Learning Media (2010) the […]

Decision making unit (DMU)

By: M Rahman | Tags: Consumer Behaviour

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. Kotler & Armstrong (2009), call the decision making unit of a buying organisation its buying centre. In fact, Webster and Wind (1972) were first to use the terms ‘buying centre’ (Kotler & Armstrong, 2009). The decision making […]

Why do customers modify or even postpone a buying decision?

By: M Rahman | Tags: Consumer Behaviour, Why do customers modify or even postpone a buying decision?

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 […]

5 factors which affect buyer behaviour

By: M Rahman | Tags: Consumer Behaviour

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 […]