The Consumer Decision-making process

The Consumer Decision-making process refers to the steps that consumers take to identify and evaluate choice options. It includes both rational and emotional factors. The Need Recognition phase is the first step in the Consumer decision-making process and can be activated from internal or external signals. Each step in the process is further explained in the following video.

Consumer purchase decisions are influenced by the following Personal factors:

Consumer purchase decisions are also influenced by Social factors:

Understanding the Product Life Cycle

The Product life cycle (PLC) is a model that describes the stages through which a product passes in terms of sales, from its initial launch, to growth, maturity, and final withdrawal. This model affects the Consumer Decision-making process.

History of the Michelin Guide

“A business enterprise has two and only two basic functions: Marketing and Innovation. Marketing and innovation produce results; all the rest are costs” (Drucker, 1995)1.

Innovation is a key concept in the business world and it should be applied in the marketing strategy of any profit or non-for-profit enterprise.  A century ago, the Michelin brothers used a genius and innovative marketing practice, which helped the company to boost its sales (by existing customers) at that time.

References:

Drucker, Peter (1995). “People and Performance: The Best of Peter Drucker on Management,” Routledge, New York