Challenged with competing products, companies are finding it more important to understand why a consumer would choose one product over another. To do this, the company needs to recognise the complex decision making process a consumer goes through. The variety of products is always expanding, but with the consumers' limited temporal and cognitive resources, they cannot simply analyse all the products. As Jon Elster (1989) points out, making rational choices does not only require access to …
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showed last 75 words of 888 total
…company and the consumer. Providing relevant information that aid in the decision-making process can add value for the customer. Customer value is defined as the ratio between the customer's perceived benefits and the resources used to achieve those benefits. Because customers are using less economic, temporal and cognitive resources in attaining the good or service, the experience can fall above expectations. The goal of marketers is to retain current customers whilst to generate new ones.