Question

Essay question:

Consumer Behavior is influenced by different factors. Explain giving examples of these factors in short notes, showing the importance of studying consumer behavior.

Answer 1

For understanding the concept of consumer behaviour it is important to know who is a consumer in economic sense.
Consumer is a person who consumes the commodities for the satisfaction of his wants with the help of his limited resources.
Consumer behaviour is a very complex topic which is not easy to understand by the business firms because the consumer behaviour is affected by the various factors which influence the consumers in various ways. Some of the most important factors which influenced the behaviour of the consumer are as follows.
1.The income of the consumer: the income is a very important factor which influence the consumer buying behaviour. There is a direct relationship between the income of the consumer and the demand of the consumer. As the income increases the demand is also increases and vice-versa.
2 Ttrend and fashion in the market also influence the consumer behaviour. In the case of favourable fashion and trend then the demand increases and vice-versa.
3 The availability of types of commodities are also an important factor which influence the consumer behaviour.
4 The market supply also affect the consumer behaviour in the market it means if the market supply of the commodity is available on time then the consumer is frequently purchase the commodity and behaviour accordingly.