Value: Decision Making and Consumers Essay

Submitted By snowman888
Words: 910
Pages: 4

Introduction
In the contemporary market, there are a considerable number of goods and services which are available to consumers. With a wide range of choices, the various needs of consumers can be met up with on a large scale. However, on the basis of purchasing purpose of consumers, several different discussions on the buying focus are started. Some believes that the concentrations of consumers are now being gradually transformed to services experience. Nevertheless, although the customer experience plays an increasingly important role in the relationship establishment and the purchasing process, a large percentage of opinions are still dependent on the practical value of products. More specifically, it is believed that consumers today are looking for value, rather than high quality service experiences. In order to prove this thesis statement, a wide range of literature review will be introduced. On the basis of critical evaluation, the reason why product value is more important than the purchasing experience from customers’ point of view will be demonstrated and illustrated in this assignment.
2.0 Product Value
Defined as the assessment of the worth of a good or service, the value of product covers a variety of issues, such as the price, function, quality of the products. More importantly, the product value is decided by how consumers and target market perceive the specific goods and services according to the overall market value. In most circumstances, there are two main factors that the customer will consider to buy. (Sweeney & Soutar, 2001) One is the desire and actual demand, while the other part of concerns relies on the universal values, such as the wealth, esteem, convenience etc. Not matter what concern it is, the importance of the value of the products is always highlighted in the process of consumer purchase. In other word, consumers tend to evaluate the expenditure and achievements, and chose the optimizing balance as final decision. In other word, nowadays, in order to fulfill the purchasing objectives, consumers will consider more about the product value, which include the cost, function and design respectively. In addition, the high quality experience is lower ranked from this point of view.
2.1 Product Cost
As one of the most important components in the decision making process of consumers, the price of products is always taken into first consideration when people are purchasing goods and services. To some extents, companies are always trying different means to provide reliable products at a reasonable price. (Keeney, 1999) From consumers’ points of view, the low price can represent the higher value of product offerings. Even though the actual benefits of products are relatively low, consumers are likely to purchase due to the increasing perception on product value. Take the fast food restaurant McDonald’s for typical example, although the food and beverage provided in McDonald’s cannot be defined as health or high quality food. Also, the services and experiences are not well managed and supplied. Even though, there are still a large number of consumers spending a consistent and satisfactory meal at a low price. On this aspect, consumers are more filling to consume for the value of products rather than experience.
2.2 Product Function
In terms of the product function, the topic is mainly discussing about whether or not the products are qualified enough to satisfy the practical needs of consumers. More specifically, when the benefits involved in one product are exceeding the cost of products, it will be more likely for consumers to make the purchasing decision. On a large scale, the service experience contributes few to the purchase of consumers. (Cronin, Brady & Hult, 2000) For instance,…