The Consumer Behavior Theory
An understanding of how the theory of consumer behavior and its application tools evolved over the years will
enable us to appreciate the validity of the theory and give us a guidance in its practical application. Consumer
behavior, like all human behavior is very complex. But the consumer behavior theory, like all theories is a
simplified & abstract representation of reality. The more simplified picture of consumers provided by the theory
helps us enormously to understand the consumers. It not only helps us to think about consumers, but also
provides us with a language to talk about them. This language is very useful, because to be effective in an
organization – for profit or non-profit – one has to persuade others to accept his ideas. And in fact, lack of this
language has been one of the greatest drawback of the modern marketers.
Market Research or Marketing Research (MR) has been developing since “MARKETING” which brings
together all customer elements, grew out of the concept of “SALES” in the early fifties. The theory of consumer
behavior draws heavily upon the famous psychologist Sigmund Freud, particularly with respect to the
emotional, psychological, mental, subjective or non-utilitarian aspects of buying decision or behavior of a
consumer. The theory represents the hidden order in this very complex activity, which we call consumer
behavior. On the surface, this highly complex & varied display of behavior by consumers seems essentially
unexplained. But slowly as the theory develops, the hidden pattern emerges, describing the order we suddenly
see, and explaining why the behavior pattern takes place.
Now, what is the magic stuff called consumer behavior theory that does all these wonderful things. It’s not just
a theory, as explained earlier, but more than that. It helps us to make better marketing decisions for profit &
non-profit organizations. Thus we can examine the characteristics of a theory that enables us to do so.
Researchers G Zaltman and M Wallendorf have came out with the most important attributes of a good & sound
theory, after very close and careful thought. These are the following :
1. A theory which does both: explains how consumers buy & predicts what consumers will buy.
2. It unifies previously unrelated areas of knowledge, for example, it relates to information that consumers
get from advertising so as to decide what brands they buy.
3. The theory is simple. If not, it can be so complex that we can’t understand well enough to apply it to our
practical problems.
4. It is testable so that we can verify whether the theory is valid and therefore dependable.
5. Implied in the previous characteristic, it is supported by the facts. This means, to lay the theory up
against data describing how consumers buy in the market and thereby determine if the facts confirm the
theory. If they don’t, then either the theory should be modified till the facts do verify it or abandon the
theory.
6. The theory is general, which means that it can be applied to a wide range of products & services. If it is
not, then it won’t be very useful.
7. It has heuristic value, meaning that it poses new questions for us that had not been previously asked.
While trying to answer these questions, new knowledge is created and that becomes the part of the
theory.
8. It is internally consistent. This means that the theory is internally free from logical incongruencies or
else the prediction will be doubtful & flawed. Lack of this quality will make the theory a dangerous tool.
9. It is original. If not, it adds little to the existing knowledge.
10. It is plausible. If not, it can’t be seen by others as making any sense, and hence, they will not likely to
accept the theory and so it won’t be useful.
11. And if all the above ten points are in order, then it can be applied to designing marketing strategy and
marketing plans.
Definitions :
Consumer Behavior (or Buyer Behaviour) is broadly defined by various scholars & researchers as :
1. It’s the behavior displayed by the consumers during the acquisition, consumption and disposition of
products, services, time and ideas by decision making units.
2. It is the body of knowledge which studies various aspects of purchase and consumption of products and
services by individuals with various social and psychological variables at play.
3. The behavior that the consumers display in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs.
4. The process and activities people engage in when searching for, selecting, purchasing, using, evaluating,
and disposing of products and services so as to satisfy their needs and desires.
5. The activities directly involved in obtaining, consuming, and disposing of products and services,
including the decision processes that precede and follow these actions.
6. The American Marketing Association (AMA) defines consumer behaviour as “The dynamic interaction
of cognition, behaviour & environmental events by which human beings conduct the exchange aspect of
their lives.
