High Capital Value of Product

1.0 INTRODUCTION

The objective of this assignment is to understand more about the consumer buying decision process in order to gain experience in learning, choosing, using and even disposing of a product. There are three types of decision making process which are habitual, limited and extended decision making process. Habitual decision making process refers to a decision making or problem solving requiring only minimal search for, and evaluation of, alternatives before purchasing. Limited decision making process involves internal and external search, few alternatives, and little post purchase evaluation. It can also be referred as lowest level of purchase involvement. Extended decision making process will be explained detail in further page.

To define, High involvement product is a high capital value good that is purchased only after long and careful consideration, such as a car, house (capital), Equipment and Machine. It is a purchase over which a consumer takes his or her time and trouble to reach a buying decision base on my personal interest, needs and want. The high-involvement product that I have chosen is hp Pavilion Laptop tx2000.

2.0 Decision making process

• This model is called as consumer decision making processes. (See Appendix A) Human beings and therefore consumers are never completely rational in making decisions so, this model will make an individual completely rational in carefully look over every product and all of its features of every other substitute for each product before make a purchase. The model implies that customers pass through all stages in every purchase and it is very useful when it comes to understanding any purchase that requires some thought and deliberation.

 The extended consumer decision making process

The extended consumer decision making process defines as the process which we go through when we decide to purchase something. This buying process is an iterative process, where people collect information from different sources and repeatedly return to re-evaluate and compare the information they have found. A decision-making process like this can be described as five different stages:-

2.1 Need recognition

The first step in decision making process is need recognition that the consumer recognizes that they have a problem or a need for a product or service based on their desire. Consumers can be triggered by their internal influential factors, such as past experience, personality, and physiological desires. On the other hand, external factors, such as consumers' social, family,