Consumers Behavior


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Chapter Code: CBC10

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Consumer Behavior Textbook

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Consumer Behavior : Chapter 10

SUMMARY: Behavioral economics focuses on the kinds of attitudes people have towards money and how they spend their money. Consumer sentiment is a significant influence which relates to consumer spending patterns; it depends on the employment scenario, the economy as a whole, the level of regular income, the quality of life, and stock market performance. Societies are generally divided into various hierarchical social strata, which are dependent on factors like education, occupation, and income.

Different societies have different strata, which may vary from as low as two to as high as nine or ten. Most societies have three broad social classes - upper class, middle class, and lower class. People belonging to one particular class can move to other classes, willingly or unwillingly, in an open society.

Such moves can significantly affect their consumption behavior. Consumer tastes and preferences are influenced greatly by consumer socialization, as well as economic, social, and cultural capital.

Marketers generally focus on affluent consumers, but recent trends have shown increasing penetration in middle and lower social classes. Many products and services are used by people as indicators of their social standing and are known as status symbols.

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