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B. Marketing Concept
Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly identified needs and wants may be satisfied by
the products and services of others Philip, 2000. Marketing be able to managing profitable customer relationships. The marketing concept is the philosophy that firms should analyze the
needs of their customers and then make decisions to satisfy those needs, better than the competition.
In 1776 in The Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. While this philosophy is
consistent with the marketing concept, it would not be adopted widely until nearly 200 years later.
The production concept prevailed from the time of the industrial revolution until the early 1920s. The production concept was the idea that a firm should focus on those products that it
could produce most efficiently and that the creation of a supply of low-cost products would in and of itself creates the demand for the products.
The sales concept by the early 1930s however, mass production had become common place, competition had increased, and there was little unfulfilled demand. Around this time,
firms began to practice the sales concept or selling concept, under which companies not only would produce the products, but also would try to convince customers to buy them through
advertising and personal selling. The marketing concept relies upon marketing research to define market segments, their
size, and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix.
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C. Consumer Decision Making
Consumer decision process is the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a
product or service Morin, 2002:6. More generally, decision making is the cognitive process
of selecting a course of action from among multiple alternatives.
According to Morin in generally there are three ways of analyzing consumer buying decisions. They are:
Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to
maximize their utility. See consumer theory. Game theory can also be used in some circumstances.
Psychological models - These models concentrate on psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than
quantitative and build on sociological factors like cultural influences and family influences.
Consumer behavior models - These are practical models used by marketers. They typically blend both economic and psychological models.
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D. Models of Buyer Decision Making
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