This Is A Literature About Consumer Behavior.

2370 words - 9 pages

"Consumer is god!" is represented very clear today. To understand and manipulate the behavior of consumer is a good weapon to against the strong competition in the market. "The American Marketing Association defines consumer behavior as 'the dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives.'" (Peter and Olson, 2002, pg6) As Peter and Olson said, Consumer Behavior is a kind of exchange. Consumers give up their money to exchange the products which they need or like. It is an exchange between consumers and sellers. Consumer Behavior is also an interaction, influenced by the environment. So marketers need to find that what are the needs for their consumers then satisfy them in order to keep the customers and stay profitable.American sociologist, Thorstein Veblen, wrote the earliest generalized conception of Consumer Behavior in his book "The Theory of the Leisure Class" in 1899. He believes that people consume not only because of the physical needs, but also because of the spiritual need. "No one finds difficulty in assenting to the commonplace that the greater part of the expenditure incurred by all classes for apparel is incurred for the sake of a respectable appearance rather than for the protection of the person." (Veblen, 1899) He gave an example about the consumption of dress in order to prove that sometimes people purchase the costly goods only because that they want to flaunt.After this viewpoint, Consumer Behavior was regarded by sociologists, psychologists and more and more corporations. In 1903, Walter Dill Scott published the book, "The Theory of Advertising" which is talking about the advertising in psycho logic way and how the American businessman manage the customers' tastes and buying habits. And following the past years, famous psychologist John B. Watson pointed out "S-R" theory. The theory analyses that the relationship between stimulation of consumers from advertising and reflection of consumers. In 1943, Abraham Harold Maslow published the book "A Theory of Human Motivation Psychological Review". In the book, he pointed out the "Maslow's Hierarchy of Needs" which includes five levels: Physiological level, Safety level, Love/belonging level, Esteem level and Self-actualization level. Maslow's Hierarchy of Needs is often described as a pyramid. People always reach the low level and than try to move to the next. This point has a big influence to the investigation of Consumer Behavior. (MBAlib, Consumer Behavior) In 1949, James Stemble Duesenberry wrote the book "Income, Saving, and the Theory of Consumer Behavior". Duesenberry found the source of this materialism in American culture: "In a fundamental sense the basic source of the drive toward higher consumption is to be found in the character of our culture. A rising standard of living is one of the major goals of our society" (Duesenberry, 1949 P26 [appendix]) His points of Consumer...

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