Consumer Behavior And Consumer Behaviour

2274 Words Nov 17th, 2014 10 Pages
Introduction
A consumer is any person that is involved in the process of consumption. They are identified according to the market type to which they belong, namely final and industrial consumers (Solomon, et al., 2013). Understanding the consumer behaviors will aid in appreciating the various market segments and developing strategies for effecting market penetration in these segments. It will also help in identifying market gaps and shape their needs and objectives so as to solve the day-to-day consumer’s concerns in purchase.
The single purpose of all production is consumption. The producer’s interest should only be attended to as far as it is necessary in promoting the needs of a consumer (Smith, 1937 p. 125). Studies on consumer behavior began in the 1960s, and later several consumer theories which focused on the consumer from various perspectives were developed. Marketers use these theories to deveop marketing strategies based on attitudes, interests and consumer perception.
Consumer behavior theories All major consumer theories can be grouped into four categories, namely economic, psychological, psycho-analytical, and socio cultural theories. They are based on the simple law of conumption that consumption increases as aggregate income increases, assuming the habits of spending are constant and political and economic conditions are free and perfect (Solomon, et al., 2013).
Economic theories Economic theories on consumption are focused on how income is allocated and how…
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