Question

In: Economics

why doesn't the type of decision-making process a consumer uses stays constant?

why doesn't the type of decision-making process a consumer uses stays constant?

Solutions

Expert Solution

The consumer's decision is based on numerous factors such as societal conditions, economic conditions, personal income, needs, taste, price, perceptions about the product, choices, etc. As one knows, these factors are not constant. The environment in which the consumer lives in largely effects his/her decision-making process and the environment itself is not constant. With the changing environment, the consumer has to update his/her needs. Likewise, the amount of income available to the consumer also largely effects his/her decision. A product that was once liked by a consumer may not be affordable anymore and thus, the consumer's decision-making process for that product has been altered due to the available income. Decision-making process is also largely based on the needs of the consumer. A product needed today may not be needed tomorrow. These are just a few examples that affect a consumer's decision-making process. The changing nature of these factors explains the constant changes in the type of decision-making process a consumer uses.


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