This theory attempts to put into consideration to consumers of goods and services, and how they generally behave before, during, and after the buying process. Consumer behavior is how consumer allocates their money incomes among goods and services.
According to Hirschey (2009) the consumer behavior theory is rest upon three basic assumptions with respect to the utility linked to the consumption where the first are: more is better. He explain that the consumer always prefer more to less (Hirschey, 2009) , for the other hand, James (2009) explain that the consumer behavior is based on the peoples have known preferences, act with full information, and choose rationally so as to maximize utility (James, 2009) .
In the current economic situation, the consumer behavior is best understood when we know the consumer preference, consumer choice, and the budget constraints.
The study of consumers helps managers improve their marketing strategies by understanding how consumers think, act, and select between different alternatives on the market, how consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; how the consumer is influenced by its surroundings and the behavior of consumers while purchasing or making other marketing decisions. The study of costumer behavior will help managers to identify limitations in consumer knowledge or information processing abilities influence decisions and marketing results; and how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.
Bibliography
Hirschey, M. (2009). Managerial Economics. usa: Cengage Learning.
James, R. (2009, Nov 10). slidershare.net. Retrieved June 22, 2012, from The standar economic model of consumer behavior and some problems with it: http://www.slideshare.net/rnja8c/the-standard-neoclassical-model-of-consumer-behavior
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