• is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants. • Refers also to the way or process of consumer’s buying attitude to meet their satisfaction

The satisfaction derived from the consumption of a commodity which determines consumption and demand behavior.Also, it is the foundation of consumer’s behavior.

• ____________ exert the Broadest and Deepest Influence on consumer Behavior. • Culture is one of the most fundamental determinants of a person’s wants and behaviors

Basically, ______ is the part of every society and is important cause of person wants and behavior. The influence of _______ on buying behavior varies from country to country.

Each culture contains different _______ such as religions, nationalities, geographic regions and racial groups

Every society possesses some form of __________ which is important to the marketers because the buying behavior of people in a given ______ is similar

__________ also impact the buying behavior of consumers. The important __________: reference group, family, role and statuses.

are those groups that have a direct or indirect influence on the person’s attitudes and behavior

Buyer behavior is strongly influenced by member of a ______

A person’s position in each group can be defined in terms of __________. A role consists of the activities a person is expected to perform according to the person around him or her. Each role carries a status reflecting the general esteem accorded to it by society.

A buyer’s decisions are also influence by personal outward characteristics such as: the buyer’s age and life cycle, occupation, economic circumstances, lifestyle, personality, and self-concept.

This includes motivation, perception, learning and beliefs and attitudes.

__________ a psychologist, proposed a need theory of motivation emphasizing psychological and interpersonal needs in addition to physical needs and economic necessity.

Theory was based on a need hierarchy later applied through Theory X and theory Y, two sets of assumptions about people at work. His need hierarchy was reformulated in an ERG theory of motivation. Need hierarchy= theory that behavior is determined by a progression of physical, social and psychological needs by higher order needs.

According to _____ Individuals make choices in order to promote pleasure and to avoid pain We make our choices in a way that maximizes the degree of satisfaction we gain from our activities.

is the technical term for satisfaction. There is a functional relationship between utility and consumption as the need for the latter arises.

____________ together with the isocost in the next section is a useful tool for analyzing consumption behavior on the utility theory.(willingness aspect of consumer’s demand)

A _________ contains infinite points of combinations of the commodity items that the same budget can buy at a given prices.(ability aspect of consumer’s demand)

Income and Substitution Effect

The consumer is not only contented to realize this effect as the new condition allows optimization by substituting more clothing for food.

The equilibrium theory of supply and demand as well as the theory of diminishing marginal utility.

little or no value in exchange but highe________ ex. Water and stainless steel

little or no value in use but higher _________ ex. Golds and diamonds