{"id":207560,"date":"2014-11-09T09:54:09","date_gmt":"2014-11-09T09:54:09","guid":{"rendered":"http:\/\/www.bms.co.in\/?p=207560"},"modified":"2014-11-09T11:20:47","modified_gmt":"2014-11-09T11:20:47","slug":"explain-the-economic-model-of-consumer-behavior","status":"publish","type":"post","link":"https:\/\/www.bms.co.in\/explain-the-economic-model-of-consumer-behavior\/","title":{"rendered":"Explain the Economic Model of Consumer Behavior"},"content":{"rendered":"<div class=\"9a7bccad80193982ffe31b50b138351b\" data-index=\"4\" style=\"float: none; margin:0px;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- 336x280, created 3\/1\/11 -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:336px;height:280px\"\r\n     data-ad-client=\"ca-pub-7750436628903486\"\r\n     data-ad-slot=\"1811033528\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.bms.co.in\/wp-content\/uploads\/2014\/11\/consumer.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-207568\" src=\"http:\/\/www.bms.co.in\/wp-content\/uploads\/2014\/11\/consumer.jpg\" alt=\"consumer\" width=\"570\" height=\"285\" srcset=\"https:\/\/www.bms.co.in\/wp-content\/uploads\/2014\/11\/consumer.jpg 720w, https:\/\/www.bms.co.in\/wp-content\/uploads\/2014\/11\/consumer-600x300.jpg 600w, https:\/\/www.bms.co.in\/wp-content\/uploads\/2014\/11\/consumer-300x150.jpg 300w\" sizes=\"(max-width: 570px) 100vw, 570px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Economic model (Marshallian model) :<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">According to economic theory, the buyers are assumed to be rational in their decision making. They follow the law of marginal utility. Consumers evaluate the alternatives available &amp; they choose the alternative which would provide them with highest utility &amp; lowest cost. Consumer allocates his\/her expenditure over different products at given price so as to maximize utility. Thus, the law of eque-marginal utility enables him\/her to secure maximum utility from limited purchasing power. The purchasing decision is based on economic calculation &amp; reasons.<\/span><\/p>\n<p><span style=\"color: #000000;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Economic model of consumer behaviour is un-dimensional. The following presumptions are made about buying behaviour.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Lower the price of the product, larger will be the quantity bought- price effect.<\/span><\/li>\n<li><span style=\"color: #000000;\">Higher is the purchasing power, higher will be the quantity- Income effect.<\/span><\/li>\n<li><span style=\"color: #000000;\">Lower the price of a substitute product, lesser the quantity that will be bought of the original product- substitution effect.<\/span><\/li>\n<li><span style=\"color: #000000;\">Higher the promotional expenditure higher will be the sales \u2013 Communication effect.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<div class=\"boombox-responsive-embed \"><iframe loading=\"lazy\" title=\"Consumer Decision Making.wmv\" width=\"1160\" height=\"870\" src=\"https:\/\/www.youtube.com\/embed\/fjdVCxn67Yc?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>\n<div style=\"display: block !important; margin:0 !important; padding: 0 !important\" id=\"wpsclp_locker_post_end_element\"><\/div>","protected":false},"excerpt":{"rendered":"<p>&nbsp; Economic model (Marshallian model) : According to economic theory, the buyers are assumed to be rational in their decision making. They follow the law of marginal utility. Consumers evaluate the alternatives available &amp; they choose the alternative which would provide them with highest utility &amp; lowest cost. Consumer allocates his\/her expenditure over different products&#8230;<\/p>\n","protected":false},"author":18678,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4096],"tags":[1679,798,939,849],"class_list":["post-207560","post","type-post","status-publish","format-standard","hentry","category-special-studies-in-marketing-sem-v","tag-behavior","tag-consumer","tag-economic","tag-model"],"_links":{"self":[{"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/posts\/207560"}],"collection":[{"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/users\/18678"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/comments?post=207560"}],"version-history":[{"count":0,"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/posts\/207560\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/media?parent=207560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/categories?post=207560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bms.co.in\/wp-json\/wp\/v2\/tags?post=207560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}