Consumer theory Essays

  • 3.3 Consumer Perception Theory

    2247 Words  | 9 Pages

    3.3: CONSUMER PERCEPTION THEORY Consumer perception is a notion that explains why consumer behaves a certain way and what consumers believes in, in different aspects of life. (Blank, 2015) Identifies consumer perception theory: self-perception, price perception and perception of a benefit to quality of life as three areas of Consumer perception theory. (Hanna/Wozniak, 2013) Explains perception as a process of collecting and interpreting feelings to complete and an understandable concept. And further

  • Theory Of Consumer Behaviour

    746 Words  | 3 Pages

    researchers (Hawkins et al. 2001:7; Bearden et al. 1997:49: and Engel et al.1995:4) elucidate the consumer behaviour as the study of the mental, emotional and physical processes of either individuals or groups and the way they employ them to choose, attain, consume and distribute products or services, to gratify the desires and wishes, and the power of these courses of action on the customer and the world. “The consumer, so it is said, is the king.... each is a voter who uses his money as votes to get the

  • The Ordinal Theory: Factors Affecting Consumer Behavior

    1233 Words  | 5 Pages

    Definition of Consumer Behavior Consumer behavior is a process whereby a person doing the activity search, select, purchase, and use of products and services desired, in order to obtain the satisfaction of the needs of these consumers. Factors Affecting Consumer Behavior 3 Factors affecting consumer behavior, according to James F. Engel - Rodger D. Blackwell - Paul W. Miniard in Saladin, namely: Environmental influence: family, culture, social class and situation Differences and Influence

  • What Is Attribution Theory In Consumer Behaviour

    1622 Words  | 7 Pages

    CONTEXTUAL PROJECT ON MARKETING RESEARCH AND CONSUMER BEHAVIOUR 1.0 IDENTIFICATION OF CONCEPTS 1.1 Consumer Behaviour: Consumer behaviour deals with all the processes involved in determining how consumers make their buying decisions to satisfy their needs. It is necessary to understand the consumers and why they buy what they buy since consumers’ satisfaction is the centre of production. If what is produced is not what is needed by the consumers, it will result in product’s failure. The understanding

  • Abraham Maslow's Theory Of Consumer Behavior

    2582 Words  | 11 Pages

    Definition of consumer behavior “Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy” Having defined consumer behavior thus, it must be understood that consumer buyer’s behavior includes assessment of the product, perception about the product, considering its worth for buying or discarding the product. Let us list out some of consumer behavior • Consumer behavior is very human • Consumer study is not easy to understand and study • Consumer behavior changes

  • Avior Of Ivan Pavlov's Theory Of Consumer Behavior

    1814 Words  | 8 Pages

    CONSUMER BEHAVIOUR TASK ONE 1.0 CONSUMER BEHAVIOUR 1.1 Introduction Theory of learning refers to the conceptual frameworks that describe how knowledge is being absorbed, processed as well as retained during learning. Learning enables people to be able to respond to changes in life effectively. The principles of learning also help individuals when interacting with others and also in learning new languages as well as in buying behavior of consumers. The use of new language requires one to have

  • Mcfadden's Rational Utility Model

    997 Words  | 4 Pages

    Microeconomic theory specifies that economic agents (mainly consumers) aim at maximizing utility given that they operate a fixed budget. Under the condition of utility-maximizing subject to fixed budget, the consumer must choose a commodity that best gives him the highest satisfaction. Economists rely on the concept of preferences and utility-maximization models to explain WTP. Conversely, people are able to buy fewer products if their income decreases or the price of goods increases. Yet as a general

  • Aspects Of Consumption In Economics

    892 Words  | 4 Pages

    3.1.1. Consumption – An Introduction Consumption is the process of utilisation of economic goods to satisfy the consumer needs. It is the amount of a thing used up, incorporated, or transformed into something else in a particular duration of time period. Only the final purchase of goods and services by individuals constitutes to consumption. Consumption Consumers can be individuals, groups, or even organisations. They may be able to satisfy their needs in a number of ways; through the acquisition

  • A Short Summary: The Quantity Theory Of Money

    981 Words  | 4 Pages

    The Quantity theory of money states the direct relationship which exists between money supply and prices in the economy. It says that as money supply in the economy changes, price changes in the same direction too. That is if money supply increases, consumers will have more money in hand to spend, thereby demanding the more goods and services which shifts the demand curve to the left, keeping supply constant leading to a rise in the price level. In similar context when money supply falls, the price

  • Essay On Demand And Demand

    764 Words  | 4 Pages

    Exactly how is demand used for the benefit of the consumer? Well the demand used by how much consumers are willing to spend on a particular product at a given time. Demand is more needed for the producers to how much of a product to supply at a given time. They can use that to their advantage by having a limited stock and jacking up the prices. The way that the consumer can use it to their advantage is by lowering the demand all the way around so that the prices

  • Elasticity In The Tobacco Industry

    1162 Words  | 5 Pages

    awareness of consumer Increasing excise tax and prices so consumers look for cheaper substitutes Substitutes for the byproducts of tobacco such as e-cigarettes According to Parkin (2010), the below table identifies the four Market Structures that exist in an economy along with their key characteristics: Market Structure Characteristics Perfect Competition Many firms, Free/easy access to enter and leave market, Firms are “price takers”, Firms all sell identical products and Consumers are well informed

  • Ordinal Approach In Utility Theory

    2123 Words  | 9 Pages

    4. The Ordinal Approach in Utility Theory Ordinal utility is a view of utility measurement based on the presumption that the satisfaction of wants and needs is not a quantifiable characteristic of human activity and that preferences are subjective. Preferences among goods can be ranked (first, second, third, etc.) but not measured according to a scale. In this regard, consumers need only specify whether one good is more or less preferred than another. How much more or less a good is preferred is

  • 3.3 Theory Of Assimilation

    863 Words  | 4 Pages

    2.3.3 Theory of Assimilation-Contrast The theory of assimilation-contrast is a combination of both the assimilation and the contrast theories; the model postulates that satisfaction is a function of the magnitude of the discrepancy between expected and perceived performance (Hoyer and MacInnis, 2001). Peyton et al. (2003) noted that when there is a large discrepancy between expectations and perceived performance, contrast effects occur and the consumer tends to magnify the perceived difference. However

  • The Importance Of Well Being

    953 Words  | 4 Pages

    Well being is a multidimensional utility, a function of own income and average income in a locality (Luttmer 2005). Own income has a positive coefficient while average income has a negative coefficient. Well being can be either perceived well being or perceived economic well being. Perceived well being scale has been based on perceived well being index developed by Deakin University. Perceived economic well being scale has been developed by Hayhoe & Wilhelm (1998). The Personal Wellbeing Index was

  • Economic Factors That Affect The Demand Of A Product Essay

    1782 Words  | 8 Pages

    Changes in income levels determine the buying power of an individual, thus an increase in income levels increases their ability to purchase goods and services. Thus the demand for a product will increase. Consumer tastes and preferences As society evolves, the tastes and preferences of consumers change too. Changes in fashions and trends cause the demand of a particular product to increase or decrease. Competition The existence of a similar product in the market by some competitor can decrease the

  • Qualitative Research In Dunkin Donuts

    786 Words  | 4 Pages

    and cost, there is evidence that individual depth interviews have intrinsic advantages relating to the quality of the research outcome (David, S, & Richard, B 2006, p. 26). Also, it can define the behavioral decision-making process of donut buying consumers and why and how they might or might not choose Dunkin' Donuts for their snack food or why they choose and prefer other branches. Dunkin' Donuts can use focus group to determine what makes a donut “taste good”. For example, the degree of sweetness

  • Léon Walras: The Theory Of Social Wealth

    2166 Words  | 9 Pages

    19th century France and based a huge amount of his time to improve the work of his predecessor Antoine Augustin Cournot. One of his main contributions to the science of economics is his published article called Elements of Pure Economics: Or, the Theory of Social Wealth, which was first published in French in 1874. In this article, he developed the first form of general equilibrium analysis, which is even used today (Wood, 1993). He started the model from the simple equations given by Cournot and

  • Monopoly Market In Malaysia

    1353 Words  | 6 Pages

    Economics is a study of the allocation of scarce resources in response to unlimited wants involving the theory of supply and demand. In the field of economics, the meaning could vary based on different things to different people. For economist, they used the term competitive market to describe a market in which there are plenty of different buyers and sellers in which each possess a negligible impact on the market price where the buyers determine the demand for the product, while the sellers determine

  • Brand Loyalty In Hotel Industry

    1531 Words  | 7 Pages

    and Sasser (1990) found that a 5% increase in customer retention resulted in a 25-125% increase in profits. This increase in profit is due to lower sales and marketing costs,increased price premiums, referrals, and revenue growth. Further, loyal consumers have fewerreasons to engage in an extended information search among alternatives, thus reducing theprobability of switching to other brands. Still, based ontheir research in luxury hotel, Bowen and Shoemaker stated that ―Loyalcustomers also claim

  • Demand Elasticity And Demand

    1098 Words  | 5 Pages

    demand curve. If the demand is perfectly inelastic, quantity does not change at all. Thus A perfectly inelastic demand is vertical, for example consumers occasionally see certain items as necessities which then makes the demand for these items to become inelastic , because regardless of the change in prices these items are essential to our wellbeing thus consumers have to purchase those items for instance oil . Oil is inelastic on the grounds that it is an ordinary item which in economic terms its seen