Generic theory of buying behavior

A distinction is made between input and output. For a small disparity an assimilation effect is thought to occur; the disparity is rationalized away. However, it has to be pointed out that 1 it is not prior known how equity is created and what its upper and lower limits are; 2 promotional activities make the equity relation relative and situation-affected, depending on whether the purchase has been prompted by a deal or not, for instance; 3 consumers tend to "satisfice" March and Simon,and do not necessarily maximize as implied in the equity concept e.

Hawkins Stern Impulse Buying While many of the theories of consumer behavior focus on rational action, Hawkins Stern believed heavily in the idea of impulse behavior. On the other hand, both the national brand and the store brand were about equal contributors to the share-of-market gained by the generic brand of tea bags.

Consumers are affected in the decision-making phase by process variables and external influences, including how the consumer envisions his or herself after making the purchase.

Berkowitz, "Social Motivation," in G. HA - Consumers' perceptions of private brands will be enhanced as a result of the introduction of a generic product to a choice set.

Process Theory Process theory is another economic theory that seeks to explain the difference between what people would theoretically do if they were rational economic actors and what they actually do in practice.

We assume that an intermediate disparity between desired and actual state of the individual has the strongest effect on motivation. Berkowitz, "Social Motivation," in G. Cultural Theory of Buying Behavior Cultural influences can affect the buying behavior of the individual. As anticipated, the proportion of participants claiming that the private brand was selected for price reasons declined from Apparently, equity theory may be applied to social relations such as management-worker and seller-buyer.

Functional motives are related to the technical functions the product performs. They were also shown only one national brand in each product category and the experiment was conducted in a single store.

A person's culture is his set of values and beliefs learned in the context of a community.

Business Theories of Buying Behavior

The avoidance tendency Tf may be related to some unsatisfactory product attributes inhibitors and the approach tendency Ts may be related to other, satisfactory product attributes facilitators.

Duke University Press, The second type of attributes facilitators give rise to satisfaction, is their level is above a certain threshold. Holt, 2 volumes. The lifestyle of the buyer also influences buying decisions. Dissatisfaction may only occur after an incorrect application of the conjunctive rule, or after using incomplete or deceptive information.

In all cases, consumers want to reach certain goal states and the products are instrumental in reaching the goals. Cultural Theory of Buying Behavior Cultural influences can affect the buying behavior of the individual.

Age Age is one of the demographic variables that often use to divide the market segment as it helps marketers to understand and keep themselves up to date of the changing life cycle of each generation Dibb et al. Situational motives are not motives in the sense of long-term desires to reach a certain goal.

How the consumer feels about the product after the purchase is also an issue. Marketers have been able to use motivation-need theory very effectively by creating an artificial need for consumers.

She holds a Master of Science in Education. We think that the generic choice, whether to buy a car or to go on a vacation, for example, has more relevance for general economic policy, consumer education, and also for marketing mix decisions.

It was anticipated that the beliefs held by consumers concerning quality differences among brands in a product class would affect choice behavior. Process Theory Process theory is another economic theory that seeks to explain the difference between what people would theoretically do if they were rational economic actors and what they actually do in practice.

Four Consumer Behavior Theories Every Marketer Should Know

According to Maslow, the physiological needs e. A structural principle is needed to explain the dynamic interactions of needs and their fulfillments. Generic Theory of Buying Behavior. Topics: Decision making, Generic Theory of Buying Behaviour For many purchases, the consumer will follow a generic model of decision-making by going through a process to make a decision.

Typically, the buyer will recognize a need to make a purchase that initiates research on products and pricing.

Consumer Behaviour Theory - Approaches & Models. Uploaded by coazy. Save. Consumer Behaviour Theory - Approaches & Models take a similar approach in defining consumer behaviour: “the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect 5/5(3).

Motivation-need theories are reviewed, their implications to consumer behavior investigated, and the various findings and concepts integrated in formulating a model of generic choice prediction. INSTINCTS AND NEEDS.

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Generic Theory of Buying Behavior. For many purchases, the consumer will follow a generic model of decision-making by going through a process to make a decision. Typically, the buyer will recognize a need to make a purchase that initiates research on products and pricing.

Buyer behaviour (theory) 1. Instructor’s Visual Index Armstrong/ Kotler Chapter 5: Consumer and Business Buyer Behavior Consumer Buying Behavior • Consumer Buying Behavior refers to the buying behavior of final consumers - individuals & households who buy goods Chapter 5 and services for personal.

In theory, the same principle applies to the buying decisions of groups of individuals such as businesses.

Business Theories of Buying Behavior

However, the idea that people are rational actors in the first place has been questioned by more recent economic theories.

Generic theory of buying behavior
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Motivation-Need Theories and Consumer Behavior by W. Fred van Raaij and Kassaye Wandwossen