Consumer behavior is a part of micro economics.
“The objective of an individual or a human to achieve maximum satisfaction through the limited resources is known as consumer’s behavior”.
Analysis of consumer’s behavior:
Around us resources are limited while wants are not. Human wants occurs again and again so that’s why they are unlimited. Human beings have to struggle and participate in economic activities to get there wants satisfied. The circle shown below will help us to understand that all the economic activities are just to satisfy our wants.
The common wants of a human are categorized in following manner:
Goods which are necessary for the survival of human being such as food. Clothes, medicines etc.
The goods which are not rather necessary but they facilitate human efforts in regard to achieve satisfaction such as bike, phone, television etc.
The goods which are used to glorify the consumption style, these types of goods never comes to an end. For example: television can satisfy the want in comparison 40” LED is luxury.Generally human wants are classified into two branches:
Those type of wants for which we have to pay some price to get them satisfied or we have to participate in some sort of economic activity. For example: food, clothing, housing etc.
Those type of wants which are satisfied with no economic struggle generally they are free gift of nature to us. For example: oxygen, rain, mothers love etc.
Characteristics of human wants:
Following are the few characteristics of human wants:
Human wants are unlimited:
Human wants are re-occurring that’s why they never end.
Wants are differing in importance:
Some human wants are more important to be satisfied first as compared to other wants. For example: hungry man must prefer eating food rather than buying a book or something else.
Some goods are necessary to be bought with other good to satisfy human want. They go side by side. For example: car and petrol, pen and ink etc.
Wants becomes habits:
Some wants occur due to habit, fashion, and customs of the society. For example: book reading, smoking, watching movies etc.