Research Proposal: The Affect of Price on Customers’ Decision Making
Context of the Research
The consumer’s decision making process is one that is of the utmost importance to marketers (Richarme, 2009). Considering the degree of internet usage that the modern day consumer has chosen to incorporate in his/her decision making process in an attempt to acquire a sound knowledge base about the product/service of concern, the need to acquire an understanding of the consumers’ decision making process has become all the more imperative (Carroll, Scott, Webb & Konrath, 2009).
Consumers are choosing to spend more time in the intermediary stages of decision making and it is for the same reason that the need to understand the variables of the process (Williams, 2002).
Aims of the Research
The aim of the research is to develop a thorough understanding of the everyday consumer’s decision making process and the degree of influence that the fluctuations of commodity prices have upon it.
Objectives of the Research
The research seeks to present an elaboration on the following primary concerns. Nevertheless, the research shall not be limited to these areas of study.
· The consumers’ decision making process.
· The degree of sensitivity that is present in the customer’s decision making process.
· The primary variable to which the consumers’ decision making is most sensitive (Time, risk, reliance, uncertainty of information, price fluctuations, product attributes’ standards, etc).
· The relevance of price to the consumer’s decision making.
· The consumers’ expectations from a products price levels and its qualities
Review of Literature
The research will incorporate a significant number of previous research studies in order to shed light on the subject of the study. Previous research studies will include those by the likes of Richarme, Ariely, the University of Minnesota Extension Centers for Family Development and 4-H Youth Development, Nehf, Smith & Brynjolfsson, Yoon, Cole & Lee, Reynolds & Olson, Kunkel & Wellin, Roth, Sutherland & Sylvester, Foxall and Goldsmith, & Brown. However, the research shall be in no manner limited to the literature by these authors and shall also make use of credible websites alongside numerous other peer reviewed publications throughout the study.
Proposed Research Method
In consideration of the nature of the research, the research methodology will be one that will be based on the accumulation, evaluation and analysis of primary data and secondary data. While the secondary data will be acquired during the development of the literature review of the study, the primary data shall be obtained through the application of research instruments. For this purpose, the survey questionnaire is a research instrument that can be brought into use to acquire a working knowledge and thorough understanding of the significance of price to customers’ decision making.
The research shall be carried out with the utmost care and diligence. Nevertheless, the presence of unexpected or unforeseen limitations shall not be ignored (Thomas, Nelson & Silverman, 2005). Limitations such as the limitation of time and resources along with participant bias are amongst limitations of primary concern in this regard. Since the limitation set present in a research is an area that forms a major part of the authenticity of a research, the limitations shall be discussed extensively in the research methodology chapter of the study.
The dissertation shall constitute a total of five chapters.
Chapter 1: Introduction
The first chapter shall provide a detailed discussion of the background, rationale, aims, key questions and objectives of the research,
Chapter 2: Literature Review
The literature review shall present an extensive elaboration on previous research studies and will serve to form the foundation of the standards and gradients used as the study proceeds.
Chapter 3: Research Methodology
The research methodology shall provide an insight into the qualitative and quantitative aspects of the study while establishing the primary and secondary data sources. The research methodology shall also constitute a discussion on the limitations of the research and a discussion on the authenticity of the research methodology employed.
Chapter 4: Findings & Observations
The fourth chapter shall present the findings observed upon the implementation of the research methodology adopted in the previous chapter.
Chapter 5: Conclusions & Recommendations
The dissertation shall come to a conclusion by presenting an analysis of the findings of the research in light of the literature review. This chapter shall also provide recommendations meant to assist in the improvement of any situations observed that require the same.
Carroll, B. J., Scott, D. M., Webb, M. J., & Konrath, J. (2009). Personal One to One Seminar Overview. Retrieved August 5, 2009, from Customer Decision Making Process: http://www.onquota.net/decision-making-processes.aspx
Richarme, M. (2009). Consumer Decision-Making Models, Strategies, and Theories, Oh My! . Retrieved August 5, 2009, from Decision Analyst: http://www.decisionanalyst.com/publ_art/DecisionMaking.dai
Thomas, J. R., Nelson, J. K., & Silverman, S. J. (2005). Research Methods in Physical Activity. Illinois: Human Kinetics.
Williams, A. (2002). Understanding the Hospitality Consumer. Oxford: Butterworth-Heinemann.
Ariely, D. (2000). Controlling the Information Flow: Effects on Consumers’ Decision Making and Preferences. Journal of Consumer Research , 233-248.
Foxall, G. R. (2002). Consumer Behaviour Analysis: The behavioural basis of consumer choice. Oxford: Taylor & Francis.
Foxall, G. R., Goldsmith, R. E., & Brown, S. (1998). Consumer Psychology for Marketing. Andover: Cengage Learning EMEA.
Kunkel, S., & Wellin, V. (2006). Consumer Voice and Choice in Long-Term Care . New York: Springer Publishing Company.
Nehf, J. P. (2005). Shopping for privacy online: Consumer decision-making Strategies and the emerging Market for Information Privacy. Journal of Law, Technology & Policy , 1-54.
Reynolds, T. J., & Olson, J. C. (2001). Understanding Consumer Decision Making: The Means-End Approach to Marketing and Advertising Strategy. Philadelphia: Lawrence Erlbaum Associates.
Richarme, M. (2001). Consumer Decision-Making Models, Strategies, and Theories, Oh My! Decision Analyst , 1-3.
Roth, T. P. (1998). The Present State of Consumer Theory: The Implications for Social Welfare Theory. Lanham: University Press of America.
Smith, M. D., & Brynjolfsson, E. (2001). Consumer Decision Making at an Interest Shopbot: Brand Still Matters. The Journal of Industrial Economics , 541-558.
Sutherland, M., & Sylvester, A. K. (2009). Advertising and the Mind of the Consumer: What Works, What Doesn’t, and Why. Sydney: Allen & Unwin.
University of Minnesota Extension Centers for Family Development and 4-H Youth Development. (2009). Regents of the University of Minnesota. Minnesota: The University of Minnesota.
Yoon, C., Cole, C. A., & Lee, M. P. (2009). Consumer decision making and aging: Current knowledge and future directions. Journal of Consumer Psychology , 2-16.