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As part of consumer behavior, the buying decision process is the decision-making process used by consumers regarding the market transactions before, during, and after the purchase of a good or service. It can be seen as a particular form of a cost–benefit analysis in the presence of multiple alternatives. [1] [2]
Research from the field of behavioral economics has shown that individuals tend to be subject to predictable biases that may lead to decision errors. The following sections describe these biases and describe the ways that they can be minimized by changing decision context through choice architecture.
Customer Decision Journey (CDJ): This model reflects the non-linear and iterative nature of consumer interactions. It recognizes that customers engage with brands through multiple touchpoints over time, influencing their purchasing decisions through a series of interactions and feedback loops .
The AIDA marketing model is a model within the class known as hierarchy of effects models or hierarchical models, all of which imply that consumers move through a series of steps or stages when they make purchase decisions. These models are linear, sequential models built on an assumption that consumers move through a series of cognitive ...
The consideration set is a subset of the awareness set, which is all of the brands and products a consumer initially thinks of when faced with a purchasing decision. [2] The awareness set is filtered into the consideration set through the consumer's individual thoughts, preferences, and feelings — such as price, mood, previous experiences ...
The next step of Category Management is to understand the mechanism of the customer's decision concerning purchases of a given category. The decision-making process is usually analyzed by observing customers directly in the store and by direct surveying. The result is recorded in the Customer Decision Tree (CDT) [9]
In the classical marketing model, marketing is deemed to be a funnel: at the beginning of the process (in the "awareness" stage) there are many branches competing for the attention of the customer, and this number is reduced through the different purchasing stages. Marketing is an action of "pushing" the brand through a few touchpoints (for ...
Market segmentation is the process of dividing mass markets into groups with similar needs and wants. [2] The rationale for market segmentation is that in order to achieve competitive advantage and superior performance, firms should: "(1) identify segments of industry demand, (2) target specific segments of demand, and (3) develop specific 'marketing mixes' for each targeted market segment ...