Consumer Buying Behaviour Analysis

Buyer Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Understanding the psychological underpinnings of consumer behaviour...................................3
Critical analysis of contemporary issue in consumer behaviour.................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Consumer buying behaviour is the collection of consumer attitudes, preferences,
intentions, desires and decision in purchase of products and services in the market. In the recent
conditions ODF market, consumer is regarded as the king and the market serves to be consumer
dominated hence it is important to study the behaviour of consumers top target their needs and
demands by businesses. This report will highlight the understanding of psychological
underpinnings of consumer behaviour and their nature with the help of various consumer
theories. The report will also include critical analysis of a contemporary issue in consumer
behaviour in market.
MAIN BODY
Understanding the psychological underpinnings of consumer behaviour
In order to understand the psychological behavior of consumer, various consumer
theories are been stated to study the topic in detail-
Marshallian Economics- This theory is implemented by Alfred Marshal a renowned
economist who stated that the consumer purchase the products and services that provides the
more personal satisfaction. In simple terms it means the consumers buy what they like if they can
afford the same. This theory have been criticized mainly for its uninformative nature but have
provided marketers a several useful hypothesis. The theory states that if the product price is
lower than the sales of that product will be higher. It shows the inverse relationship between the
consumer's demand and the price. The theory also states that if there is product substitute of the
original product and has its low price then the sales of that substitute product will be higher than
the original product. The theory also states that if the income of the consumer is higher, then the
sales of the product will also be higher if the product is not in the category of inferior goods. This
theory broadly states that the price of the product influence the consumer behaviour to purchase
particular product or services(Consumer Behaviour Theories).
Psychoanalytic theory- This theory is being initiated through Sigmund Freud who was
an Austrian founder of Psychoanalysis. The theory states that the humans are unable to
understand their own motivations due to their psychological factors which shapes them are
largely unconscious. It suggests that a major portion of unconscious mind contains strong
impulses and desires. These desires will be affected and can cause guilt and shame when they are
being initiated, hence the people will change or replace them. The theory suggests that the