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  Theory of Consumer Behavior

Theory of Consumer Behavior:

Introduction:

The presence of human needs is the basis of all economic activity in a society. All requirements, tastes and purposes of human beings are termed as wants in economics.

1. Wants might occur due to psychological and elementary causes. The requirements for food, clothing & housing are elementary and psychological.

2. Requirements might occur due to social causes. As members of society, we might necessitate a specific kind of dress and food.

3. Requirements occur due to customs and habits similar to drinking tea and chewing.

4. Requirements might occur due to advertisements.

In the early phases of civilization, requirements of men were few and simple. With enhancement of civilization, requirements have become unlimited and also complicated. Man tries to gratify most of his wants via economic activity. As the resources are restricted, he has to choose among urgent wants and not so urgent wants. The systematic survey of this procedure is termed as consumption. Consumption means utilization of goods and services in the satisfaction of human needs. The economics of consumption is associated to a study of nature of needs and the behavior of demand.

 

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