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How Do Consumers Make Choices? A Summary of Evidence from Marketing and Psychology

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Author Info
Babutsidze, Zakaria () (UNU-MERIT)

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Abstract

In this paper I review the evidence from marketing and psychology literature about the purchase behavior of consumers. I concentrate on the characteristics of the choice process, choice of the external information source and nature of the information obtained from these sources. The impact of important systematic differences among consumers and products on choice behavior is also discussed.

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Publisher Info
Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 005.

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Date of creation: 2007
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Handle: RePEc:dgr:unumer:2007005

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Web page: http://www.merit.unu.edu

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Related research
Keywords: Consumer Choice; Information; Decision-making; Marketing;

Other versions of this item:

Find related papers by JEL classification:
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Andrew D. Gershoff & Gita Venkataramani Johar, 2006. "Do You Know Me? Consumer Calibration of Friends' Knowledge," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 32(4), pages 496-503, 03. [Downloadable!] (restricted)
  2. Russo, J Edward & Leclerc, France, 1994. " An Eye-Fixation Analysis of Choice Processes for Consumer Nondurables," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 21(2), pages 274-90, September.
  3. Heath, Timothy B & McCarthy, Michael S & Mothersbaugh, David L, 1994. " Spokesperson Fame and Vividness Effects in the Context of Issue-Relevant Thinking: The Moderating Role of Competitive Setting," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 20(4), pages 520-34, March.
  4. Holt, Douglas B, 1995. " How Consumers Consume: A Typology of Consumption Practices," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 22(1), pages 1-16, June.
  5. Muthukrishnan, A V, 1995. " Decision Ambiguity and Incumbent Brand Advantage," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 22(1), pages 98-109, June.
  6. Coupey, Eloise, 1994. " Restructuring: Constructive Processing of Information Displays in Consumer Choice," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 21(1), pages 83-99, June.
  7. Lussier, Denis A & Olshavsky, Richard W, 1979. " Task Complexity and Contingent Processing in Brand Choice," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 6(2), pages 154-65, Se.
  8. Alba, Joseph W & Hutchinson, J Wesley, 1987. " Dimensions of Consumer Expertise," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 13(4), pages 411-54, March.
  9. Brucks, Merrie, 1985. " The Effects of Product Class Knowledge on Information Search Behavior," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 12(1), pages 1-16, June.
  10. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March. [Downloadable!] (restricted)
  11. Bettman, James R & Zins, Michel A, 1977. " Constructive Processes in Consumer Choice," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 4(2), pages 75-85, Se.
  12. Heath, Timothy B & Chatterjee, Subimal, 1995. " Asymmetric Decoy Effects on Lower-Quality versus Higher-Quality Brands: Meta-analytic and Experimental Evidence," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 22(3), pages 268-84, December.
  13. Beatty, Sharon E & Smith, Scott M, 1987. " External Search Effort: An Investigation across Several Product Categories," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 14(1), pages 83-95, June.
  14. Moorthy, Sridhar & Ratchford, Brian T & Talukdar, Debabrata, 1997. " Consumer Information Search Revisited: Theory and Empirical Analysis," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 23(4), pages 263-77, March.
  15. Bettman, James R & Park, C Whan, 1980. " Effects of Prior Knowledge and Experience and Phase of the Choice Process on Consumer Decision Processes: A Protocol Analysis," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 7(3), pages 234-48, December.
  16. Samuelson, William & Zeckhauser, Richard, 1988. " Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
  17. Biehal, Gabriel & Chakravarti, Dipankar, 1986. " Consumers' Use of Memory and External Information in Choice: Macro and Micro Perspectives," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 12(4), pages 382-405, March.
  18. Simonson, Itamar, 1989. " Choice Based on Reasons: The Case of Attraction and Compromise Effects," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 16(2), pages 158-74, September.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tommaso Ciarli & André Lorentz & Maria Savona & Marco Valente, 2008. "The Effect of Consumption and Production Structure on Growth and Distribution. A Micro to Macro Model," Papers on Economics and Evolution 2008-13, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  2. Babutsidze, Zakaria & Cowan, Robin, 2008. "Habit Formation, Information Exchange and the Social Geography of Demand," UNU-MERIT Working Paper Series 047, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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This page was last updated on 2009-12-17.


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