Consumer Behavior Theory

This paper analyzes the concept of consumer behavior, by looking at the four main models on consumer behavior, namely; the Marshallian economic model, the Pavlovian learning model, the Freudian psychological model and the Veblenian social-psychological model. Marshallian model states that consumer behavior is based on the utility one derives from a certain good or service, Veblen’s model, states that consumers tend to copy from their environment, Pavlovian models states that consumer behavior is conditional reflex action which is learned, and Freudian model argues that consumer behavior is psychological. This concept however, complex it may seem, is very key, especially to marketers and economists 

Table of Contents

Abstract

The Concept of Consumer Behavior

Models of Consumer Behavior

The Marshallian Economic Model

The Veblen Ian Social-Psychological Model

The Pavlovian Learning Model

Drive

Cue

Response

The Freudian Psychoanalytical Model

Conclusion

Consumer Behavior Theory

Consumer behavior refers to characteristics displayed by consumers, in the process of choosing what, when and where to buy goods and services. (Ertz, 2016). Goods and services bough by consumers are divided into needs and wants   Needs are thingswithout which people cannot survive, while wants are desires in life. In order to understand consumer behaviors, one can only start by understanding an individual’s behavior.  This is due to the fact that consumer behavior is just a subset of human behavior. Human behavior refers to the total process whereby the individual interacts with his environment.  It encompasses all the thoughts and actions that human beings take.  In essence, it entails, the state of a consumer’s mind, as at the time of

The Concept of Consumer Behavior

Linehan (2013) defines consumer behavior as the process through which an individual with needs and wants decide whether, what, where, how and from whom to purchase goods and services. It is worth noting that the main objective of the consumer is to satisfy his or her unlimited wants using the limited resources. An analysis of consumer behavior is therefore, geared towards ensuring that the consumer satisfies his or her unlimited wants.  The whole processof consumption involves buying and exchange process, experience and ideas.   Consumers can be distinguished in two ways namely; personal consumers and organizational consumers. Personal consumers purchase goods and services for personal or household use or in order to gift some else.  In essence, personal consumers purchase goods for their own personal consumption. Organizational consumers, on the other hand, purchase goods and services to run organizations, which are charity oriented, profit oriented, and services oriented like government and institutions.

Consumer behavior is regarded as a rather new concept, with no solid historical background. Based on the fact that the concept emanates from human behavior, it tends to borrow scientific, sociology and anthropology theories (Scott, Askegaard, & Belk, 2012).  The concept is, however, dominant in marketing and economic fields. The main reason as to why understanding the concept of consumer behavior is critical is due to the fact that it determines the level of turnover as well as profit expected by an organization. In essence, the motive and actions of consumers, determine the economic viability of a firm.

Models of Consumer Behavior

It is not possible to comprehensively explain the reason as to why people buy a specific good. This is due to the fact that demand is affected by a number of factors. The urge to buy is influenced by psyche, which eventually leads to evert purchase response from a consumer. Human behavior can, therefore, be said to represent the beliefs held regarding the nature of human beings and the cause of their behavior (Sedlakova & Zahradka, 2012). Both Marketers and economists have diverse views on the reasons behind consumer behavior.  The models that have been chosen in this case are the Marshallian economic model, the Pavlovian learning model, the Freudian psychological model and the Veblenian social-psychological model.   

The Marshallian Economic Model

According to the Marshallian economic model, individual buyers will spend on goods and services from which they derive utmost satisfaction. This is, however, dependent on taste, preferences and the relative price of the goods and services.  Marshallian economic model borrows from Adam Smith’s and Jeremy Bentham’s theories. According to Adam Smith’s theory on economic growth, the motivation of a consumer is based on self-interest. Bentham’s theory, on the other hand, states that the consumer behavior which in effect influences the demand for a subject good and services is dependent on the level of pleasure or pain or every contemplated action(Ertz (2016). Marshall’s methods and assumptions have been refined to the modern utility theory. 

According to the modern utility theory, one maximizes his or her utility through calculating the felicific consequences of any purchase. It is worth noting that the Marshallian model used money as the common denominator of psychological needs. In essence the value of satisfying needs is equated to cost (Linehan, 2013). It is, therefore, possible to conclude that in the Marshallian model, economic factors alone are not sufficient in explaining all the variations in the selling and buying processes. In this theory, the fundamentals of how brand and product preferences are formed are ignored. This model offers a useful frame of reference for analyzing only a small portion of a consumer’s psyche.  Marshallian theory can be summarized using the following graph:

Figure 1: Normal Demand and Supply Curves 

Source: Author (2019)

The Veblen Ian Social-Psychological Model

According to Veblen’s model, man is perceived as a social being, hence he conforms to his larger culture as well the more specific standards of subculture and face to face groups in which they operate. In essence, this means that human behavior is molded by the present group or memberships (Scott, Askegaard, & Belk, 2012). On the basis  of this theory model, Veblen hypothesized that for the so called leisure class, a great portion of economic consumption is influenced and motivated by prestige which tends to seek and not the needs or satisfaction. The model is criticized as it is perceived to be more of modern perpetrates which are often overstated.  For instance, not everybody considers leisure class to be a frame of reference. In addition, people tend to seek to rise in class ladder. Besides, more people would rather underspend than overspend on conscious items.

The Pavlovian Learning Model

This theory emanates from Pavlov experiments of ringing a bell when feeding dogs. Pavlov discovered that dogs would salivate when a bell is rang, even when they are not fed. From this, Pavlov concluded that learning occurred due to a process of association and large component of a human behavior was conditioned in this way. The objective of the laboratory experiments was to explore the whole process of learning and forgetting. According to this concept, the following are the main influencers of demand:

Drive

This is influenced by needs or motives.  Drive mainly influences the demand for basic needs. Learned drives, which are derived socially, include fear and acquisitiveness.

Cue

Cue is perceived as the weaker stimuli in an individual and the environment will determine where, when and how a particular subject responds. An example is an advert for soda, which stimulates thirst on the side of a consumer, hence the need to quench the thirst (Linehan, 2013).

Response

This has to do with the reaction of the configuration cues. It is, however, worth to note that not all configurations will necessarily be the same. Responses depends on the degree to which an experience was rewarding.

Reinforcement 

A rewarding experience will result in the reinforcement of a particular response. An implication therefore exists where a tendency is formed and the same response can be repeated if the same configuration for cues exist. According to Scott, Askegaard, and Belk (2012), a habit which is not learned may have its cue finally dying.

The Freudian Psychoanalytical Model

Freud attached the idea that man reigned over his own psyche whereas preceding philosophical views had contradicted this. Freud assumed that the psychological forces shaping people’s behavior are largely unconscious, leading to people not being able to fully comprehend their own motivations (Özçaǧlar-Toulouse, Rinallo, & Belk, 2016). According to this theory, as a human being grows, their psyche remains the source of a strong urge and drive. Urges which cause shame are repressed from the conscious, leading to formation of self-defense mechanism. According to Freud, urges are not eliminated through perfect controls, hence at times they remain as aspirations. A possible result of this model practically is that, since an individual is not able to understand his own behavior, it is complex for a casual observer to understand such behavior.

 It is possible, therefore, factual to state that the philosophical divergences, as mentioned earlier, is a wide range of behavioral phenomena. Besides, consumers are motivated by both symbolic and economic functional product concern.

Conclusion

From  the aboveanalysis, it is possible to conclude that the concept of consumer behavior is critical both to marketers and economists. Through this concept, the phases of economic development factors can be planned and implemented.  The concept is, therefore, applicable both at macro and micro levels. However, constant research on the subject is critical as it keeps evolving.

References

Ertz, M. (2016). Proposition of an Integrative Theory of Socially Responsible Consumption Behaviour. Electronic Green Journal1(39), 1–18. 

Linehan, M. (2013). Consumer Behaviour : Irish Patterns and Perspectives. Dublin: Gill Books.

Özçaǧlar-Toulouse, N., Rinallo, D., & Belk, R. W. (2016). Consumer Culture Theory. Bingley: Emerald Group Publishing Limited.

Scott, L. M., Askegaard, S., & Belk, R. W. (2012). Research in Consumer Behavior. Bingley, U.K.: Emerald Group Publishing Limited. 

Sedlakova, R., & Zahradka, P. (2012). New Perspectives on Consumer Culture Theory and Research. Newcastle Upon Tyne, UK: Cambridge Scholars Publishing.