Consumer Behaviour

Kimep

MKT 3201: Consumer Behavior

Fall 2012

Assignment 1

Askar Amanbayev

20074477

When it comes to studying the trend, factors and on what impulses consumer behavior is based upon, we realize that it heavily relies on psychology in the first place and many other exterior factors as well, in this essay we will look upon the main ones.

Finances:

To be blunt about it, consumer power and purchase ability is directly related to the amount of finances available at a certain period. Finances is a broad term for defining money in all of it's forms and variety, which can either be in form of consumer's own savings, or from borrowed sources such as credits from banks or financial institutions.

So the decisions to purchase or consume a product or a service is highly dependent on the availability of the funds, which opens a whole different topic when it comes to offer the availability of these funds. Governments use this instrument all the time to control the state of the economy whether it's in subsidizing, putting quotas on it or simply injecting big resources in different segments. Banks regulates the % for loans to offer more incentives for customers to take on credits and loans and make purchases.

When it comes to local examples we can talk about mortgage programs offered by banks and financial institutions, trying to make things easier for the masses. Providing low entry fee, low % and extended time periods to pay it back. Doing everything for pushing up the process and economy in the real estate sector while still making sure to make a profit out of it in the long term run.

Prices:

Another quite obvious factor affecting consumer behavior is the pricing, based on the logical explanation that when the prices are high, the demand will be lower, when the prices are lower, the demand will get higher. While in the books this theory holds truth, in real life it's not always the case. For example the fact that the I-phone is one...