Theory of consumer behavior

The consumer behavior theory is the most important section of the economy. He studies the features of the psychology of the average person in certain situations. This topic becomes extremely relevant in the modern capitalist world. This section of the economy studies the formation of demand. Let's try to understand what the theory of consumer behavior is.

When a person purchases any products, he is guided by the ratio of its value to the volume of his personal money. It is understood that the behavioral characteristics of the consumer are individual. When making a purchase, it is taken into account that a person proceeds from the limitations of his budget. At the same time, the consumer always sets three main questions:

1) What exactly should I purchase?

2) On what cash?

3) Does the budget allow me to make a purchase?

Man is also guided by the principle of utility. That is, he chooses that product, which has the most advantages in comparison with other options. Utility means the degree of satisfaction of needs. The demand for products can be divided into two categories:

1) Functional. That is, people buy products or services, guided by their consumer properties.

2) Non-functional demand. That is, an individual purchases products, guided not by its consumer properties, but by any other reasons. Nonfunctional demand is also divided into three types:

• Social ("snob effect"). In this case, a person acquires those economic benefits that are most popular in society as a whole.
• Speculative. This kind of demand directly depends on the so-called "Verlaine effect", or on high inflation expectations.
• Irrational. This type of demand implies an unscheduled purchase, made under the influence of immediate expectations. The theory of consumer behavior says that a person, when acquiring these or other benefits, does it rationally. This type of demand violates this axiom.

The budget constraint implies a certain framework, beyond which satisfaction of needs can not go. For example, a person gets a certain salary. On it, he will be able to purchase a limited number of benefits.

Let's consider the basic hypotheses on which the theory of consumer behavior is built:

1) Monetary budget of people is always limited.

2) Prices for all types of products and services are set.

3) Consumers choose the product themselves.

4) All people, when shopping, strive for rational behavior. That is, they take into account the level of utility products.

Considering the model of consumer behavior, we can not fail to mention the factors that influence the choice of certain goods. Here you can include age, gender, educational level, any personal reasons. Consumer factors are also certain psychological aspects, that is, the temperament of a person, his character. The choice is influenced by the cultural level, for example, an individual can relate himself to a subculture. The social factor also applies to the issue under consideration. For example, this may be the attitude of a person to any political group. The economic factor is also important. To it it is possible to carry a level of the income of the person, cost of those or other goods.

As is obvious from the article, there are completely different models of consumer behavior. The formation of demand is influenced by a whole complex of interrelated factors. It is also worth noting that a clear and complete understanding of consumer psychology is extremely important in the world of market relations.