BEHAVIORAL STUDIES

Analysis of Human Behavior and their Changing Preferences

Impact of Human Behavior and Changes in Purchasing Pattern

Introduction

This study is based on the effectiveness and impacts of varied fashion trends, culture, peer pressure and especially economical factors on the behavior of consumers towards their purchasing pattern.

Consumers are the most important individuals that give firms a reason to operate in the business world. Consumer preferences are key factors that affect the purchasing pattern of products and services. This is why the study and observation of consumer tastes and preferences has become an influential part of business and its marketing strategies. There are several ways to measure consumer behavior and for this purpose several approaches are adapted. There are there common approaches to the behavioral changes of customers.

Open study approach

This approach gives customers open opportunity to rank the importance of satisfaction they receive for each of their purchase and list down the factors that might affect their purchasing habit or pattern over a period of time (Brooker, 1987)

Hedonic pricing approach

This approach learns about changing consumer tastes by abating the price of the product which proves that price is the

Demand function approach

It estimates the changes in consumer preference according to the theory of demand. This approach speaks of price largely affecting the demands of consumers for particular product and service. It also includes affecting factors like price of substitutes, socio economic, demographic, population and several more elements (Tomek and Robinson, 1972). It therefore entails estimating the demand for a product by regressing the amount of goods purchased on the above factors. The most common and recently applied approach is demand function approach. Discussion

Economists describes demand as the desire and ability to pay price for particular commodity whereas quantity of goods demanded is the number of goods consumers are willing and able to buy at a certain price. The demand for the products and services constantly change with passage of time this is generally recognized as the changes in their preferences.

Following are the factors that affect demand

Price of the product itself

There is a potential relationship between the price of the product and its demand. This relationship is reverse because any increase in price decrease the quantity demanded and vise versa. This negative relationship is shown with the help of downward slope of the consumer demand curve.

For instance if a price of a new launched game is high then the person might plan to switch to another game instead of this game. So price matters a lot when it comes to the preference of a consumer.

Price of substitutes

A substitute is a good that can be used instead of the primary good that has fulfills the same purpose. Relationship between price of substitutes and demand of the good is positive because when the price of the substitute good rises the demand for the primary good also increases.

Price of complementary goods

Complementary goods are those products that are suppose to be used with the primary ...