Economic Models of Consumer Behaviour

Economic Models of Consumer Behaviour : 

Economic Models of Consumer Behaviour Authored By: Anupam Kumar Reader, SMS Varanasi Email: anupamkr@gmail.com 1 © Copyright 2010 Anupam Kumar

Economic Model : 

© Copyright 2010 Anupam Kumar 2 Economic Model Synthesized by Alfred Marshall based on the Theory of Marginal Utility and Micro-Economic Theory. The Focus is on the “Act of Purchase” of an “Average Consumer”. Explains “What” a Consumer would purchase and “In What Quantity”.

Economic Model : 

© Copyright 2010 Anupam Kumar 3 Economic Model Basic Assumptions: Individual Needs are Unlimited Individual Needs Cannot be Fully Satisfied. Individual is Completely Aware of his Needs Individual is a Rational Buyer Individual has the Perfect Information about the Utility of Products available in the Market The Utility of a Product or Service gets Reduced with each subsequent purchase The Price of Goods are the sole sacrifice involved in obtaining a Product or Service Market is a Collection of Homogeneous Individuals

Economic Model : 

© Copyright 2010 Anupam Kumar 4 Economic Model Individuals allocate their Resources to Maximize Satisfaction of their Needs and Wants Resource = Price / Money If Needs/Wants = Food Maximize Satisfaction … How?

Economic Model : 

© Copyright 2010 Anupam Kumar 5 Economic Model Basic Assumptions: Individual Needs are Unlimited Individual Needs Cannot be Fully Satisfied. Individual is Completely Aware of his Needs Individual is a Rational Buyer Individual has the Perfect Information about the Utility of Products available in the Market The Price of Goods are the sole sacrifice involved in obtaining a Product or Service Market is a Collection of Homogeneous Individuals Individuals allocate their Resources to Maximize Satisfaction of their Needs and Wants Objections against Economic Model

Criticism to Economic Model : 

© Copyright 2010 Anupam Kumar 6 Criticism to Economic Model The major criticism to Economic Model comes from the premise, “Consumers allocate their Resources to Maximize Satisfaction.” Further, Economic Models Ignores the Effect of Perception Attitude Motivation Personality Learning Process Social Class Culture

Bibliography : 

© Copyright 2010 Anupam Kumar 7 Bibliography Lindquist, Jay D. and Sirgy, M Joseph. Consumer Behaviour. New Delhi: Cenage Learning India Private Limited, 2009. Hawkins, Del I., Best, Roger J., Coney, Kenneth A. and Mookerjee, Amit. Consumer Behaviour: Building Marketing Strategy. Ninth Edition New Delhi: Tata McGraw-Hill Publishing Company Limited, 2007. Schiffman, Leon G. and Kanuk, Leslie L. Consumer Behaviour. Ninth Edition. New Delhi: Dorling Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009. Loudon, David L. and Della Britta, Albert J. Consumer Behaviour. Fourth Edition. New Delhi: Tata McGraw-Hill Publishing Company Limited, 2002. Assael, Henry. Consumer Behaviour: A Strategic Approach. New Delhi: Biztantra, An Imprint of Dreamtech Press. By arrangement with Houghton Mifflin Co., USA, 2009. Khan, Martin. Consumer Behaviour. Second Edition. New Delhi: New Age International (P) Limited, 2004. Nair, Suja R. Consumer Behaviour in Indian Perspective. Mumbai: Himalya Publishing House, 2007. Kumar, S Ramesh. Consumer Behaviour and Branding: Concepts Reading and Cases. Noida: Dorling Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009. Gupta, S.L. and Pal Sumitra. Consumer Behaviour: An Indian Perspective. New Delhi: Sultan Chand & Sons, 2001. Datta, Debraj and Datta Mahua. Consumer Behaviour & Advertising Management. Delhi: Vrinda Publications (P) Ltd., 2009.

For further details / comments : 

© Copyright 2010 Anupam Kumar 8 For further details / comments Contact: Anupam Kumar Reader, SMS Varanasi Email: anupamkr@gmail.com