Theory of Buyer Behaviour
Posted by David Adam on August 18th, 2017
Once a consumer feels the need to purchase the product, they undergo different steps before making the purchase. Cultural, environmental and their own personal behaviour affects their decisions. Later we will discuss a consumer theory of behaviour. Consumer decision making solely focuses on the act of purchase of individuals. The most relevant theory used in this section is “Utility theory” where a consumer maximises their wants given their budget constraint.
Consumer behaviour has responded to a change in the modern marketing process.
A number of approaches have been adopted to study the buying behaviour the buyer. The five approaches are:
In the first section, it is observed that consumers are rational decision makers who should have the power to allocate his income properly while buying products. The consumer should rank the products as per his likeness and will consume a product which will give him maximum utility with minimum effort and expenses. Marginal utility theory is one of the important theories which show that the consumer will continue to consume a given product until he gets full satisfaction. The first unit of consumption will give higher utility than the second unit.
“Keynes psychodynamic law of consumption states that when the income will rise, the expenditure on consumption will also rise but in a smaller amount.”
Absolute Income Hypothesis, Relative income hypothesis, permanent income hypothesis, Life cycle Hypothesis are some of the economic theories of buying behaviour. Each theory explains the theory of consumption and income.
The psychological theory states that consumers learn from experience which helps to take decisions in future.
Sigmund Freud has given the idea that personality of an individual depends on the three aspects. One is the id, the ego, and the super ego. Here it signifies an enjoyable act, the super ego shows moral issues and the ego determines whether to proceed or not that is whether to decision making or not.
Socio cultural theories are also known as Veblenian model. The likes and dislikes of the individuals in a group influence a man’s behaviour. Cultures, sub cultures, the background of the family influences the buying behaviour of the consumer.
All the above theories show that how consumers will behave in different situations which influence their buying behaviour.
Explain only one theory of buyer behaviour in detail.
According to Kotler, consumer behaviour is the study of what to buy, how to buy and why to buy. It studies the different behaviour of customers like sociology, sociopsychology, anthropology, economics etc.
According to Baker consumers lack proper knowledge about the products, they are buying but they are continuously making a purchase without having proper information about the brands. So according to Baker, understanding the branding of the products is necessary. Advertisements and various distributions help in promoting the product to the customers to increase their demand. There are two important approaches to the consumer behaviour.
Author Bio: David Adam is a Dissertation Writer at HND Assignment Help, He writes on many interesting educational topics like Technology, management, business, human resource and more topic for helping students in their assignment writing.
About the AuthorDavid Adam
Joined: August 18th, 2017
Articles Posted: 1
CryptoTab Browser - Easy way for Bitcoin Mining | CryptoTab Browser
CryptoTab Browser is the world's first web browser with built-in mining features. Familiar Chrome user interface is perfectly combined with extremely fast mining speed. Mine and browse at the same time!
FREE Android & iOS App - Get Paid to Explore!
The COIN app is a revolutionary new app that pays you to explore the world! Download it today and start earning while you are on the go!
Share Your Internet Connection & Get Paid
HoneyGain is compatible for desktop computers, Android and iOS and pays you when you share your internet connection!
Store Bitcoin and a Earn Passive Income
Miny CC allows you to store your Bitcoin, Litecoin and Ethereum on their platform and pays you 10%-19% in monthly returns based on your stake.
Get Paid to Write Reviews!
BravoCoin is a review app that pays its community for writing & rating reviews of restaurants, hotels, services, movies, video games & more. Signup and claim 10 FREE Bravo coins!
CryptoBits - Welcome to the World of Crypto!
Explore the world of Crypto and learn to invest and earn, play games and become a part of the decentralized world today!