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Consumer behaviour theory

Consumer behaviour theories are based on human behaviour theories. As we know that no single theory is capable of understanding the psychology of people and their patterns of consumption.

Trying to understand what makes them buy is a goal of every business. The only way to create theories and models is by studying the buying patterns of the customers.

Consumer behavior theory

Consumer behaviour theories for decision making

Consumer behavior theory is the study of how people make decisions. How and when it was based on consumer decision making. Their study was based on an economic perspective and focused on the purchase Patterns.

  • Theoretical approaches to the study of consumer behavior: There are different approaches adopted in the study of decision-making based on different psychological patterns.  These  approaches have  alternate models of man, and  the need to examine  different variables (Foxall 1990);
  • Psychoanalytic theory:   Psychoanalytic theory was given by Sigmund Freud. He was a psychologist. He gave theories on human behaviour. He believed that humans make many decisions unconsciously. The conscious mind has strong desires and wants.

Freud says the age and income offered to customers do not affect the purchase. Where psychology plays an important role in buying a product. Marketing messages with emotional peace, feelings, or fears affect the customer more.

  • Pavlovian theory: Evan Pavlov was a Russian psychologist. His research concluded human behaviour. According to him, human behaviour is conditioned in particular situations.

According to Pavlovian theory, for any investment to establish a brand, the market should change consumer’s habits. They should reinforce those elements, that are positive experiences for the customer.

  • Veblenian social-psychological model: He was an economist. According to him, humans are social creatures. They get affected through culture and subgroups. He says people have individual desires.

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Models of consumer behaviour 

1.Traditional methods: The early models were developed by economists to understand the economic system. As we all know that resources are limited, where the wants and needs are unlimited. Economics helps people with how they can fulfil their needs with unlimited resources.

  • Economic model:  The economic model suggests that man is a rational human being. Evaluate all the alternatives to get maximum satisfaction. According to the law of diminishing marginal utility, consumers follow the principle of maximum utility, with a  Limited purchasing power consumer needs different products.
  • Advertisement: The law of Equi marginal utility makes the customer get maximum utility, with limited purchasing power. Buyers’ decisions are based on the concept of utility.
  • Learning model: The learning model is based on Pavlovian theory. That is stimulus-response theory buyers behaviour gets affected by manipulating stimuli and response of the buyer. This model is based on the ability to learn in learning to forget and to discriminate against the buyer.
  • The psychological model: This model is based on Freudian theory. The model says that a particular customer has some deeply rooted motives that motivate him for a particular buying decision
  • The sociological model:  According to two sociological models, buyers are influenced by society. It includes his group and the class he belongs to. One does not purchase only for utility purposes people copy, follow, and try to fit themselves in society.

How to apply consumer behaviour theories and models    

The market is using these basic theories in a very creative way. According to the Varian model, they are trying to understand the technology-saturated culture. That means the consumer has high values. The advertisement should be shorter and more effective.  Changing customer values has increased the expectation of the customer from the brand. The consumer maintains a long term relationship with the brands they prefer. 

According to the science of behaviour, innovations have changed, the marketing profession. Universities offer online BS, BA programs with Marketing concentrations. It takes only one or two years to complete the program that will provide the student with a booming career in marketing. 

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