Decision making unit (DMU)

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Last updated: November 2016 Image: Pixabay Decision Making Unit (DMU) Decision Making Unit. Business decisions are usually taken collectively. A number of people may be involved in the decision-making process and not necessarily, everyone will have the same power. Someone is the most influential, whereas someone is the least. This piece of information is very useful from a supplier’s point of view. According to Kotler & Armstrong (2009), the decision making unit of a buying organisation is called its buying centre. It includes all the individuals and units that play […]

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Why do customers modify or even postpone a buying decision?

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While a customer’s decision to amend or cancel a buying decision is influenced by a number of factors, one of the main factors is the customer’s perceived risk. According to Kotler et al (2009), consumers may perceive many types of risk in buying and consuming a product. For example: Functional risk: The customer may feel that the product will not perform up to his/her expectations. This feeling reduces the importance of buying the product to insignificance. Physical risk: Physical risk is another important factor to consider. A customer may avoid […]

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5 factors which affect buyer behaviour

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Last updated June 2016 There is no doubt that a number of factors may affect the buying decision of a customer. It is very important for marketing managers to understand how these factors work and impact on the decision-making of a customer. Why does a customer buy some particular products? Why does he/she prefer one product to another? A study of some factors will help the readers find answers to these questions. As mentioned above, there are a number of factors that will impact on a customer’s buying decision. However, […]

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Consumer buying behaviour process

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What is consumer buying behaviour? According to Kotler et al (2009), consumer behaviour is the study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. Consumer behaviour can be divided into two types: high-involvement behaviour and low-involvement behaviour. High-involvement behaviour is also called complex buying behaviour. Customers sometimes spend a lot of time to make a decision to buy a product/service. They become heavily involved in the purchasing process. This involvement is called high-involvement or complex buying behaviour. […]

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What is consumer behaviour?

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Definition of consumer behaviour Consumer behaviour is defined as ‘the acts of individuals directly involved in obtaining and using economic products and services, including the decision processes that precede and determine theses acts’ (Lancaster and Reynolds, 2004, p.50). According to Kotler et al (2009), consumer behaviour is the study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. Consumer behaviour is about how consumers buy and use products and services in order to satisfy their desires. No doubt […]

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