The Study On The Ambiguity Of Chioce Behavior And Conversion Efficiency In The Brand Economics

The world is full of uncertainty, and mankind is always looking for various ways to reduce the uncertainty of life and work. This article is a branch of these studies, which is trying to study how to reduce the uncertainty of choice behavior in economic activities from the perspective of the Brand Economics. Precisely, this article in the "choice cost analysis paradigm" of the brand economics explains the roots of ambiguity and reducing uncertainty mechanism of the choice cost, as well as the uncertainty of choice through competitive market exchange influences firms' acts and the firms should take the brand strategy and other related issues for increasing its conversion efficiency. In this paper, the brand elements will be introduced to the uncertainty analysis of choice and decision-making behavior, and introduce a new application of uncertainty theory on the choice and decision-making behavior.First, this paper reviewed the research on the uncertainty. Like all other disciplines, the researches on the uncertainty of every subject are a major turning point in the development history. Economics study on the uncertainty has also gone through the process from scratch, with the in-depth study, uncertainty in the status of economics, more and more important. Every step forward in economics is built on how to overcome the basis of uncertainty. In particular, the important issues on the choice of uncertainty in the further study of economics can not be evaded. In the mainstream economics on economic choice behavior the main "economic rational men" hypothesis has become the shackles of the uncertainty study. So relaxing this assumption, the various studies the theory of uncertainty has developed rapidly. But in the study and comparing, it has been found that these theories are always trying to through variety new assumptions of alternatives to "rational economic men" assumption. They will turn the definition of the uncertainty of Knight into a neo-classical economic analysis in the framework of the "risk ", making it consistent with the theoretical framework of analysis, and no real will to resolve the uncertainty of Knight. This line of thought to the limits on development caused the "Ellsberg-Zhang Paradox". That any attempts to using mathematical methods to measure out the methods are not feasible, and any "uncertainty" that can be measured up is no longer a real sense of uncertainty. But the "choice cost analysis paradigm" of the brand economics could very well resolve this problem, because the analysis of ideas rather than to measure the uncertainty itself, but by reducing the choice cost to reduce the uncertainty.Secondly, based on the literature reviewed the paper divided the uncertainty of choice into 4 basic types in a creative way to measure and completeness of the information, and then discussed in detail the true sense choice uncertainty, and pointed out that the "choice cost analysis paradigm" is a fit analysis tools to this kind of problem. On this basis, this thesis used the brand consumers' choice model from the brand economics for reference to build a brand choice behavior model, and discussed in detail the micro-economic activities, consumer choice behavior and decision-making mechanism under the uncertain conditions. Studies have shown that under the uncertain conditions it is difficult for consumers to optimize decision-making through its utility maximization, and then an alternative way is to set a certain level of expected utility, and through the efforts of brand choice behavior model to minimize the choice cost. In other words, under uncertain conditions, the micro-economic consumers can hardly be a clear understanding of their most effective it can achieve, and even they will not be able to ascertain whether there is the greatest effectiveness, then according to bounded rationality theory, he is bound to set a utility level, as long as it achieve the effectiveness of the level of their choice on that act is considered as effective. We believe that as well ad the institution factor is certain, transaction costs will be followed to determine, and then the ultimate impact of micro-actors choose to act is the choice cost constraints; and brands choice behavior will be able to effectively reduce the choice cost of decision-making behavior. In theory, this paper proves that the roots of choice behavior uncertainty and the reducing mechanism, and explains that even through the uncertainty itself is not accurately measured; we can also find the effective way to reduce the choice uncertainty through the brand building stratagems.With the increase in production capacity and the continuous increase in productivity, the economy gradually transformed from a shortage into relative surplus. The choice and purchase of consumers decide the achievement of commodity value that is "a thrill jump". This is so important for the firms because "if the thrill jump is not successful, it is not the commodity to be broken but the owner of the commodity. This shows that firm's production efficiency can not decide their continued access to the profits, in particular, in the competitive market full of uncertainties, the real significance of the decision makers is the conversion efficiency, that is the portion of production capacity of the largest production capacity of manufacturers to achieve "breathtaking leap". Through this study, brand credit is improved an important factor to the conversion efficiency. Brand credit can effectively reduce the uncertainty of consumers' behavior in the competitive market, thereby enhance the consumer choice efficiency; from the firms' perspective, the increased efficiency of consumer choice means that manufacturers' conversion efficiency improving. Therefore, manufacturers can not simply focus on the production technology and other issues, the more important thing is how to build their own brands system to reduce uncertainty of consumer choice behavior in the market, and ensure the maintenance of its high conversion efficiency, so that it can conducive to the realization of the value of products.General speaking, with the different from the mainstream economics, this article with the "choice cost analysis paradigm" advanced by Sun Yueyao etc., focus on in the relative excess economy the roots of choice behavior uncertainty and the reducing mechanisms, at the same time this uncertainty through the four major links of economic activity in the market exchange conducts to the manufacturers production efficiency, which has a direct impact on manufacturers production value of the degree of realization. Research shows that when institutional factors are certain, brands have a decisive effect to the ambiguity of consumers' choice behavior and the realization of the value of firms' products.