The Theory Of

Consumer Behavior
 What is consumer behavior?
• It is the decision of processes and acts of
people involved in buying and using
products
• Consumer behaviour consists of how
the consumer's emotions, attitudes, and
preferences affect buying behaviour.
• The science of marketing is increasingly
important to success in the modern
marketplace. Understanding human
behavior, how people think and make
decisions can be illuminating for
marketers. Studying consumer behavior
can provide professional marketers with
the knowledge they need to develop
effective communications that motivate
people to purchase goods and services.
• Prior to the mid-20th century, businesses
promoting their goods and services
focused little attention on the individual
behavior of their customers.
• In the early 1950s, marketers began to
recognize the benefits of selling to
customers already inclined to buy certain
products.
 CONSUMER BEHAVIOR THEORY
• Theories of consumer behavior are a
natural extension of human behavior
theories. While no single theory is
unifying, each one provides a unique
piece of the puzzle in understanding
the psychological processes of
people and their patterns of
consumption
FOUR INFLUENTIAL
THEORIES FOR
MARKETERS
 MARSHALLIAN ECONOMICS
• Alfred Marshall was an economist
who believed that consumers buy
their goods and services based on
what offers the most personal
satisfaction. Some have criticized
this theory for being
uninformative.
ALFRED
MARSHALL
However, the theory has given marketers
several useful hypotheses. Some include:
• If a products price is lower, the sales of that product will
be higher.
• When there is a product, and substitute of that product,
sales of the substitute will be greater if its price is lower
than the price of the original product.
• When the income of consumers is higher, sales of a
product will therefore be higher , provided the product is
not an inferior one.
PSYCHOANALYTIC THEORY
Psychoanalytic theory traces
back traces back to Sigmund
Freud, the Austrian founder
of psychoanalysis. Although
he himself was not concerned
with consumer behavior, his
theories of human behavior
were revolutionary.
 PSYCHOANALYTIC THEORY

• Consumers respond to
symbolic concerns as much
as they respond to those of
economics and function.
 PAVLOVIAN THEORY
• this theory comes from the work of
russian psychologist Ivan Pavlov. Pavlov
discovered that if he rang a bell
immediately prior to feeding a dog, he
could eventually get the dog to salivate
just by ringing it. (explain. HE concluded
that much of human behavior results
from conditioned responses.
• When establishing or reinventing a
brand, marketers can use this
knowledge to help create or change
customer habits, or reinforce brand
elements that are associated with
positive customer experiences.
 IVAN
PAVLOV
VEBLENIAN SOCIAL PSYCHOLOGICAL MODEL

• Economist Thorstein Veblen suggested

that humans are social creatures who
conform to the standards of the culture
and subgroups in which they live. He
believed that people's individual needs
and desires are created and influenced
by group membership.
Thorstein Veblen
 THANK YOU SO
MUCH, TO GOD BE
ALL THE HIGHEST
GLORY!