The purchase decision

purchase photoThe purchase decision is influenced by a variety of factors including price, quality and advertisement.

From the perspective of a company, this means that reducing the price to get more demand is just one of the many ways to improve the bottom line, because there are many other channels through which a consumer’s decision can be influenced. What is perhaps surprising is that even a detail such as the name of the product could influence the perception of the consumer.

A study by Antonia Mantonakis at Brock University showed for instance that consumers are willing to pay more for wine with a hard-to-pronounce names even if they’re the same quality as lesser brands (article).

As consumers, however, we should be aware of the various factors that are influencing our decisions, try to understand the motivation of any purchase and evaluate if we are taking a correct decision. Let’s say a new cellphone model comes out and we feel like buying it, but do we really need it or are we just being driven by advertisements? Whatever the final decision, this should be based on good arguments!