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(PDF) Consumer buying decision process

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Added on  2019-12-04

(PDF) Consumer buying decision process

   Added on 2019-12-04

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Consumer buying decision
(PDF) Consumer buying decision process_1
Table of ContentsINTRODUCTION...........................................................................................................................1Utility theory................................................................................................................................1Black box Theory........................................................................................................................2Indifference preferences theory of Consumer Behaviour............................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
(PDF) Consumer buying decision process_2
INTRODUCTION Buying behaviour of customers include consumer's attitudes, their preferences, intentionsto purchase products, nonetheless, it also includes decisions in respect with customer’s behaviorwithin the marketplace at the time of purchasing a product or service (Foxall, 2014). Theconsumer buying decision are affected by number of factors which must be studied at the time oftaking a purchase decision. It is needed to assess the buying behavior for individual in certainsituations so as to provide better insights to the organizations for designing products and theirmarketing strategies. The study herewith aimed at assessing the factors affecting consumerbuying decision when buying private label food brands. Here, in this regard some theories areapplied to get better insights into the factors affecting consumer buying decision and how suchfactors can affect purchase decisions of customers of in private label food brands.Utility theory Utility theory is the most prevalent model which emphasized that customers makechoices based on the expected outcomes of their decisions. The theory is developed by a BritishEconomist, named William Stanley Jevons in 1870. According to this theory, customers arenoted as rational decision makers who concern for self-interest. In general, utility is an economicconcept which shows that it is impossible to measure the utility derived from a good or service,however, it can be ranked as per the preference to the consumer. The theory is specifically linkedwith pricing perception and the income of the customers, as a rational buyer does not spendmoney on an additional unit of good, unless, the marginal utility dose not reaches equal to orgreater than of that addition unit (Coto-Millán, 2003). The theory depicts that price of a good isinterrelated to marginal utility on which basis customer rank his/ her preferences accordingly.Solomon (2014) stated that customers behaviour significantly considers a wide range of factorsthat acknowledges a broad range of consumption which are far more than purchasing. Theconcept of utility theory is the important in underpinning rational choice theory that is effectivein explaining satisfaction which is experienced by the consumer of a good. The willingness ofpeople to pay different monetary value for different goods is denoted as price paid for utility ofgoods. The application of utility theory is helpful in analyzing the demand that permitsindividuals to determine factors affecting the level of consumer demand for private label food1 | P a g e
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