The theory of consumer behavior is the most important section of the economy. He studies the characteristics of the psychology of the average person in certain situations. This topic is becoming 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 acquires a product, he is guided by the ratio of its value to the amount 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 poses three main questions:
1) What exactly should be purchased?
2) What money?
3) Does the budget allow you to make a purchase?
Man is also guided by the principle of utility. That is, he chooses the product that has the most advantages over other options. Usefulness means the degree of satisfaction of needs. Demand for products can be divided into two categories:
1) Functional. That is, a person buys products or services, guided by their consumer properties.
2) Non-functional demand. That is, the individual acquires products, guided not by its consumer properties, but by some third-party reasons. Non-functional demand is also divided into three types:
- Social (“snob effect”). In this case, a person acquires those economic goods that are most popular in society as a whole.
- Speculative. This type of demand directly depends on the so-called “Verlaine effect”, or on high inflation expectations.
- Irrational. This type of demand implies unplanned purchases made under the influence of momentary expectations. The theory of consumer behavior says that a person, acquiring certain goods, does it rationally. The type of demand under consideration violates this axiom.
The budget constraint implies a certain framework beyond which the satisfaction of needs cannot go. For example, a person receives a certain salary. At her, he will be able to acquire a limited number of benefits.
Consider the main hypotheses on which the theory of consumer behavior is based:
1) The money budget of people is always limited.
2) Prices are set for all types of products and services.
3) Consumers make their choice of a product on their own.
4) All people in shopping tend to rational behavior. That is, they take into account the level of utility of the product.
Considering the model of consumer behavior, one cannot but mention the factors affecting the choice of certain goods. This may include age, gender, educational level, any personal reasons. Consumer factors are also certain psychological aspects, that is, the person’s temperament, his character. The choice is influenced by the cultural level, for example, an individual can relate to any subculture. The social factor also refers to the issue under consideration. For example, this may be a person’s attitude to any political group. The economic factor is also important. It can include a person’s income level, the value of certain goods.
As is obvious from the article, there are completely different patterns of consumer behavior. The formation of demand is influenced by a whole range 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.
