Chapter 6 - Consumer Decision Making

It is very crucial for a firm to understand  how consumers make their decision when making purchases.  Acquiring this knowledge will help a firm's decision on how they specifically market their products to their consumer.

As you all may know by now, Gilt Groupe is a members only flash website that offers designer clothing for men, women, and children up to 80% off.  As a consumer, being apart of a members only website like Gilt.com creates an atmosphere of exclusivity for the shopper's experience.

We live in a world today were designer clothing and goods represent a sign of success and wealth. Generally speaking, the average person would choice to wear designer clothing but never do because of the high cost.  Gilt is a business platform that caters to all consumers that want to wear designer clothing but at very affordable price.

The first step to gain a consumer's trust is through brand recognition.  There are many off price flash websites in the market today but Gilt Groupe is the first of its kind.  Gilt's advantage to their business model not only from the product they sell but lies with the people they employee.  By hiring veteran clothing buyers that have priceless relationships with designer brands provides the company a major advantage.  These relationships allow Gilt.com to sell these designer clothes at a discounted price on their website exclusively. Once a consumer gains the trust of a company through brand recognition, a stimuli occurs and now you have a customer making a decision based on how well things are priced on the website. That is why Gilt.com has over 5 million members and still counting.