MODELS OF CONSUMER BEHAVIOUR - Marshallain Economic Theory
Marshallain Economic Theory:
Alfred Marshall and other classical economists bare the first professional groups to construct a specific theory of buyer behaviour. This theory holds that purchasing decisions are the result of largely ration of & conscious economic calculation. The individual buyer seeks to spend his income on those goods that will deliver the more utility.
Marketers have dismissed this model as an observed one as it is not applicable to the real world situations. This model is also often called as economical model. In this four main effects where discussed according to which the customers where supposedly taking decisions regarding purchases. The effects are
Price Effect: According to this the lesser price of the product, the more the sale would take place.
Income Effect: The higher the real income the more the buyer would spend on the products.
Substantial Effect: The lower of the price of the substantial products the higher the sales would be, therefore declining the sales of the other product.
Communication Effect: The more the product feature is communicated to the consumer. The more sales it would be.
However, these four effects are not always employed by consumer during their purchase. Further, nothing is specified regarding the relation between the product features and consumer preferences. This model gives only a very narrow view of the purchase pattern & this cannot serve as a perfect model for understanding consumer preferences in buying behaviour.
Source: Books & Notes
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By: Management Duniya
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