Topic > Theories of Consumer Behavior - 624

The theory of consumer behavior is based on a variety of different assumptions. One of the first basic assumptions is that consumers act on rational behavior. Consumers are naturally attracted to what will get them a better sale. Everyone naturally wants to spend their income and get the most bang for their buck. For example, if Miller Lite cost fifteen dollars for twenty-four cans and Busch Beer cost twenty dollars for forty cans, the consumer might be attracted to Busch alcohol. By purchasing the second brand the consumer will follow the theory of rational behavior and obtain maximum utility for the dollars spent. This statement would be true if it weren't for consumer preferences. The next basic assumption for the theory of consumer behavior is consumers' preferences when referring to a good or service. For example, if a consumer has always purchased Miller Lite, he or she will always enter the store and purchase it without looking at its substitutes. If the opposite is true, a consumer may be attracted to another brand of beer, such as Busch. When you look at the other bran...