Consumer decision-making in major purchases: value over price

¶ … Purchase

The modern consumer is a far more sophisticated individual than those generations that came before; this is as much a reflection of the complexity of the present day economy as it is about consumer behavior itself. In an age of Internet shopping, deep discounts, and everything seemingly "on sale" constantly, the steps necessary in making a major purchase are as important as ever, because while intense competition for consumer dollars may seem like a huge advantage for the buyer, the argument can be made that value is more important than price. As the famous saying goes, nothing is a bargain unless you can use it. Lest anyone doubt this age old adage, try wearing a pair of shoes that are 2 sizes too small, which you bought just because they were less expensive than the shoes that were the proper size for you.

An argument that nothing is a bargain unless you can use it is reinforced by some key examples; consider, for a moment, one of the most major purchases the average person will ever make- their home. if, for example, you have the opportunity to buy a 2 bedroom ranch home at an incredible price, it is not a good deal for you if you have a wife and 8 children. Going back to the introduction to this essay, the value is not there, even though the price is appealing. The value proposition of any major purchase is worth a closer look at this point; what is meant by the value proposition is that the purchase you are going to make is going to improve your life in some way, make some task easier to complete, or meet an unfulfilled need. In the classic view of economics, this is often called utility. Without utility or demonstrated value, a major purchase should not be pursued. However, for those cases when a major purchase is to be pursued, there are some steps which need to be followed as such:

First, in any major buying decisions, knowledge is power. Because of the proliferation of product information available online these days, one can compile a great deal of facts, pricing information, brands, and so forth about major purchases before exploring any particular resource for buying that major item. Having a solid knowledge base from the start is an excellent first step.

Second, armed with the information you've compiled, get some real world opinions on what you are looking to buy; it's no secret that among your family, friends, and co-workers, satisfied and dissatisfied people are always willing to talk openly about their buying experiences. Take this information and treat it like gold, for it is the type of feedback that is hard to find in a magazine article or product review in a Website or something of that nature.