Economics And Consumer Behavior Pdf

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Selective attention occurs when consumers focus on some messages to the exclusion of others. Social identity factors include culture, sub-culture and reference groups. They decide what to purchase, often based on their disposable income or budget.

Consumer behaviour Consumer choice Consumer economics Consumer neuroscience Consumer product Marketing research. Belief Systems, Religion, and Behavioral Economics. For instance, behavioural economics is adding fresh, how do you transfer pdf to word document new insights into certain aspects of consumer behaviour. Consumers switch brands for a variety of reasons including that the store did not have the regular brand or the consumer's desire for variety or novelty in brand choice.

Consumer behaviour

Selective exposure occurs when consumers decide whether to be exposed to information inputs. Consumers who are less knowledgeble about a category tend to evaluate a brand based on its functional characteristics. Computers in Human Behavior.

Purchase intentions are a strong, yet imperfect predictor of sales. Internal influences refer to both personal and interpersonal factors.

Economics and consumer behavior pdf

In practice some purchase decisions, such as those made routinely or habitually, are not driven by a strong sense of problem-solving. Outline History Subfields.

National and International Perspectives, Jagdish N. On the other hand, a purchase decision is classified as high involvement when psycho-social risks are perceived to be relatively high. Time refers to the rate at which the innovation is picked up by the members of the social system. However, new research methods such as ethnography and consumer neuroscience are shedding new light on how consumers make decisions.

Economics and consumer behavior pdf

Other factors that may affect the purchase decision include the environment and the consumer's prior experience with the category or brand. In an offline shopping environment, consumers derive satisfaction from being within the physical store environment or retail landscape hedonic motivations. Maslow's hierarchy of needs is based on five levels of needs, organized accordingly to the level of importance. Opinion Leaders can act like reference groups in that they exert considerable social influence because of their product knowledge, expertise and credibility. In other words, consumption subcultures cut across demographic, geographic and social boundaries.

Loyalty marketing programs are built on the insight that it costs times more to acquire a new customer than to retain an existing customer. The stages of the decision process normally occur in a fixed sequence. Accordingly, white packaging would be an inappropriate color choice for food labels on products to be marketed in Asia.

Many commercial loyalty programs are hybrid schemes, combining elements of both reward and recognition. Cengage Learning Australia Pty Limited. More often, however, a subculture occurs when people with shared interests form a loose-knit group with a distinctive identity sometimes called consumer tribes.

In the marketing literature, the consumer's motivation to search for information and engage in the purchase decision process is sometimes known as involvement. Alternatively, evaluation may occur continuously throughout the entire decision process. Novice consumers, on the other hand, are less efficient information searchers and tend to perceive higher levels of purchase risk on account of their unfamiliarity with the brand or category. For the consumer, channel switching offers a more diverse shopping experience.

Economics and consumer behavior pdfEconomics and consumer behavior pdf

Impulse purchases are unplanned purchases. Selective retention occurs when consumers remember some information while rapidly forgetting other information. Studies have shown that the diffusion rate for many new technologies is speeding up. Marketers are interested in consumer perceptions of brands, packaging, product formulations, labeling and pricing. Evidence of channel switching can suggest that disruptive forces are at play, and that consumer behaviour is undergoing fundamental changes.

Economics and consumer behavior pdf

Trend-spotters are accordingly interested in studying the lifestyles and activities of tribes in an effort to spot new trends before they go mainstream. Of special interest is the threshold of perception also known as the just noticeable difference in a stimulus.

Product value is likely to be similar for both online and offline shoppers. Selective comprehension is where the consumer interprets information in a manner that is consistent with their own beliefs. They tend to be more argumentative and are more likely to complain. The line between emotions and mood is difficult to draw and consumer researchers often use the concepts interchangeably. Others use online platforms for making the actual purchase.

Economics and consumer behavior pdf

When consumers make unfavorable comparisons between the chosen option and the options forgone, they may feel post-decision regret or buyer's remorse. Understanding purchasing and consumption behaviour is a key challenge for marketers. Jansson-Boyd and Magdalena J.

For instance, the consumer may be aware of certain brands, but not favourably disposed towards them known as the inept set. From Wikipedia, the free encyclopedia. Conceptualisation and measurement of optimal consumer decision making. To meet the growing demand for luxury goods, Ferrari and other luxury car makers have been forced to modify their production processes for Asian markets.

That, is they are more efficient at processing information, are able to integrate information by identifying useful relationships and arrive at creative solutions to problems. Impulse buying, reasons why, consumer electronics - Oh My. Pearson Education Limited. The extent to which purchase intentions result in actual sales is known as the sales conversion rate. Towards the end of the evaluation stage, consumers form a purchase intention, which may or may not translate into an actual product purchase.

Research has shown that consumer behaviour is difficult to predict, even for experts in the field. Rather, they occur in real time and are affected by other stimuli, including external environmental stimuli and the consumer's momentary situation. International Review of Business Research.

Consumer behaviour

Emotions elicited during consumption are proposed to leave affective traces in memory, traces that are available for consumers to access and integrate into their satisfaction assessments. The perception process is where individuals receive, organize and interpret information in order to attribute some meaning. Do Purchase Intentions Contribute to Accuracy? Part of any marketing program requires an understanding of which motives drive given product choices. Some purchase decisions involve long, detailed processes that include extensive information search to select between competing alternatives.