In our normal day to day lives, we as a both consumers and people, make a great deal of decisions. Some decisions come naturally to us, like, “should I turn off the TV before I leave the house?” or “should I stop at the red light?” However, other decisions require a little more thought process behind them. Understanding how people and/or consumers reach their decisions/choices is an area that has received a lot of attention. Theories have been generated to explain how people make decisions, and what types of factors influence decision making in the present and future. There are several factors that also influence decision making. These may include “past experiences, cognitive biases, age and individual differences, belief in personal relevance, and an escalation of commitment” (Dietrich, n.d.). Understanding these factors may help us understand their impact on the decision’s outcome. One of the recent, most significant, decision making process that went awry for me was related to the car that I currently drive. About eleven months ago, I had decided to purchase a new car. However, like most people, I was immediately faced with a tough choice of whether to lease or finance the vehicle. Not having had an opportunity to purchase a brand new or used …show more content…
In my particular scenario, my goal was clearly defined as to buy a new Toyota Corolla, while finding the most cost effective solution. The next step was to gather information about leasing and financing. I had a basic understanding about leasing; however, I wanted to research enough about it to identify a good leasing deal from a bad one. Unfortunately, I did not have great credit history. Therefore, landing a good interest rate for finance or lease was going to be somewhat of a
It is difficult to make life decisions when knowing that it is all up to you to make the right choice not knowing what the outcome is. In “Gregory” by Panos Ionannides, the soldier has to decide whether to follow the headquarters or his own instincts. Furthermore, in “Just Lather, That’s All” the barber also has to make a choice in a small amount of time, to either kill Torres or not. Moreover, he has no orders to kill Torres it was his own decision to kill someone. The protagonists in “Gregory” and “Just Lather, That’s All” both face moral dilemmas throughout the stories. In the short story “Gregory” by Panos Ionannides, the soldier decides to follow his ethics. In the story “Just Lather That’s All” by Hernando Tellez, the barber has chosen to go towards his morals. Both the soldier and the barber portray that they both need to make decisions that are wise.
More importantly, the decision to purchase is done subconsciously. This means that the majority of the time, your consumer is not even aware of their decision to buy or not to buy your product. In fact,
Have you ever thought about why you made a purchase? Or better yet, what decisions or attributes pointed you towards that specific purchase? It could have been because the product was cheap, aesthetically appealing, or simply something you have been motivated to buy for quite some time. Dan Ariely, author of Predictably Irrational, explores how individuals behave in ways that are irrational, yet do consistently, and predictably, without even realizing it. Individual’s irrational behaviors are not random, and we repeat the same mistakes over and over again making them predictable. Nevertheless, by understanding that individuals are predictably irrational, it will later encourage them to do something differently when making other consumer behavior
Bird, Colin. “Should I Pay Cash, Lease or Finance My New Car?” Cars.com. May 5, 2013. Cars.com. November 24, 2013. http://www.cars.com/go/advice/Story.jsp?section=fin&subject=loan-quick-start&story=should-i-pay-cash&referer=advice.
Buying and leasing are two very different approaches to obtaining a vehicle while both have their advantages and disadvantages both can also benefit the purchaser. There are many differences between the two but the primary difference is with buying money is paid to own the vehicle and with leasing money is paid to use the vehicle. According to the site www.towtrucknet.com/financing.htm, of the 15.5 million new vehicles sold in 1998 a record 5.3 million were leased. The three main differences are payments/price, depreciation value, and valuable differences.
Before starting this reading assignment I never thought to question why I make the decisions I do in such a short amount of time. After reading Blink: The Power of Thinking Without Thinking, written by Malcolm Gladwell I have a better understanding of how we as individuals perceive and react to information. This book provides insight on how to critically asses and understand the way our minds operate on a deeper level. The book consists of 6 chapters, each providing insight on how the decision making process works and how it affects what we do with every second of the day. Throughout each chapter there are subsections with personal stories, case studies, or examples that help provide an alternative view on how the decision making process is carried out under normal circumstances.
Decision making theories and models largely derive from the fields of psychology and economics. The Lens Model (Brunswik, 1952) was a conceptual design, sparking a plethora of literature outlining subsequent models and theories on judgements and decision making. Brunswik set out that an individual uses fallible ‘cues’ from their environment while trying to be as empirically accurate as possible in making judgements. Hammond (1967), an architect of modern decision making theory built on this conceptual model with his Cognitive Continuum Theory (CCT), which looks at the combination of an individual’s cognitive ability and their use of situational ‘cues’ when making a decision (Hammond et al, 1967; & Hammond, 2000). CCT works on the notion that decision making is based on a certain systematic process: the analysis
Choices, we make choices every day. Could you imagine if you could never make your own choices? That you never got to choose what you eat, what you wear, your own life full of choices? Could you imagine that life, it doesn’t sound like a real life, what is life without choices.
As humans, would like to think we are rational in our decisions, especially for major decisions that will affect our lives or the lives of others in the long run. Nonetheless all decisions form from the foundations of our attitudes where they can stem from internal or external factors.
First, the safety ratings are one of most important things that you will need to take into consideration. The safety ratings will tell you how the car did in a crash test simulation. Knowing the value of the car that you want to buy is also, very important because you want to make sure that you’re getting a good deal at the dealership when the time comes. When that day comes, the salesperson will try to get the best deal for the dealership, and it may sound like a good deal, but it is best if you know before going to the dealership. Not only will this help you in the long run but it will also help you save money on the car. When you’re buying a car it is also, important to know what kind of model you want, whether a suv or van, plays a big role because of fuel economy. Most suvs have bad fuel economy because they have big engines and in general are big cars. Same thing with vans, they also do not have the best fuel economy but there are great for family trips. Now, you will also, have to worry about getting your car loan approved, in order to purchase the car. This means that you will have to have a good credit score in order to get approved for this type of loan.
From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase. Not all purchases require following all five steps to a T, but consumers, whether they know it or not, follow a version of this model when making a purchase. Companies also use this model in order to effectively market their products and services. A company
There are many situational factors that can affect the purchasing behavior of a consumer. Situational influences “can be defined as all the factors particular to a time and place that a demonstrable and systematic effect on current behavior” (Peter & Donnelly, 2013). In other words, situational influences are
There are many psychological factors that can influence you throughout your life. Your genetics, environment, parents, peers, and society have influenced you every day since you were born. Each person is made an individual due to the different experiences in life. Your daily life constantly bombards you with stimulus that shapes you and your personality. In this paper, I will be discussing what psychological influences have affected me. This will include my childhood and how it made effects me today, the psychological personalities I currently have, and what changes I’d like to make for the future.
Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management. Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process.
When making a decision, how does one come up with the proper structure followed to reach a conclusion? Does one simply guess and take a risk, or does it take deeper consideration and thought? Logic, reasoning, and intuition commonly are set to oppose each other, but a possibility requiring great consideration is the fact that they tend to work together each time to produce better, more intelligent results. Primarily, reasoning displays high importance in the existence of logic. That connection between reasoning and logic is closely linked to intuition. Furthermore, a common misleading statement of a logical mind when referring to university choices, allows for the analysis of how all three parts affect decision making. Thus, although humans