Buyer decision process

As part of <a href="/facts/Consumer_behavior/6dly1pUV">consumer behavior</a>, the buying decision process is the <a href="/facts/Decision-making/NbJYprSw">decision-making</a> process used by consumers regarding the market transactions before, during, and after the purchase of a <a href="/facts/Good_(economics)/AtK6gQh2">good</a> or <a href="/facts/Service_(economics)/B7L4tR8r">service</a>. It can be seen as a particular form of a <a href="/facts/Cost%25E2%2580%2593benefit_analysis/xjHXgIAF">cost–benefit analysis</a> in the presence of multiple alternatives.
To put it simply, In consumer behavior, the buyer decision process refers to the series of steps consumers follow when making choices about purchasing goods or services, including activities before, during, and after the transaction.
Common examples include <a href="/facts/Shopping/oQP8Mtc8">shopping</a> and deciding what to eat. Decision-making is a psychological construct. This means that although a decision cannot be "seen", we can infer from observable behavior that a decision has been made. Therefore, we conclude that a psychological "decision-making" event has occurred. It is a construction that imputes a commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action.
Nobel laureate <a href="/facts/Herbert_A._Simon/NNHhQ2bS">Herbert A. Simon</a> sees <a href="/facts/Economic/okLWSsEY">economic</a> decision-making as a vain attempt to be rational. Simon claimed (in 1947 and 1957) that if a complete analysis is to be done, a decision will be immensely complex. Simon also wrote that peoples' information processing ability is limited. The assumption of a perfectly <a href="/facts/Rationality/ueS0w9lk">rational</a> economic actor is unrealistic. Consumers are influenced by emotional and nonrational considerations making attempts to be rational only partially successful. He called for replacing the perfect rationality assumptions of <a href="/facts/Homo_economicus/wsY8sa8D">homo economicus</a> with a conception of rationality tailored to cognitively limited agents. Even if the buyer decision process was highly rational, the required <a href="/facts/Product_information/RtLd0RpK">product information</a> and/or knowledge is often substantially limited in quality or extent, as is the availability of potential alternatives. Factors such as cognitive effort and decision-making time also play a role.

Buyer decision process open-in-new

Buyer decision process