Session

Management, Business and Economics

Description

The economic explanation of customer behavior in the purchasing process starts from the assumption that buying represents a process of choosing products between different alternatives, even under the influence of rational motives. Economic theory, which has given the consumer economic explanation, assumes that homogeneous buyers are present on the market and they behave in a foreseeable manner. The consumer person is seen as a rational buyer who has general information about the market and tries to maximize the expected value of money, time and spent effort. The customer is determined to purchase those products and services that will bring greater satisfaction by taking the price as one of the most important factors in the decision making process for purchasing. Thus, the customer, based on the information they possess, distinguishes between homogeneous products and decides on the lowest-price. In addition to the price in consumer behavior, other factors such as income and factors as quality, service, promotion etc. However, the explanation of economic theory is mostly oriented towards the product, rather than to the consumer, paying particular attention to price and income.

Keywords:

consumer behavior, products, factors, revenue, quality, price

Session Chair

Nehat Ramadani

Session Co-Chair

Uragan Alija

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-59-2

First Page

30

Last Page

34

Location

Durres, Albania

Start Date

27-10-2017 4:45 PM

End Date

27-10-2017 6:15 PM

DOI

10.33107/ubt-ic.2017.237

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Oct 27th, 4:45 PM Oct 27th, 6:15 PM

The Economic Explanation of Customer Behavior

Durres, Albania

The economic explanation of customer behavior in the purchasing process starts from the assumption that buying represents a process of choosing products between different alternatives, even under the influence of rational motives. Economic theory, which has given the consumer economic explanation, assumes that homogeneous buyers are present on the market and they behave in a foreseeable manner. The consumer person is seen as a rational buyer who has general information about the market and tries to maximize the expected value of money, time and spent effort. The customer is determined to purchase those products and services that will bring greater satisfaction by taking the price as one of the most important factors in the decision making process for purchasing. Thus, the customer, based on the information they possess, distinguishes between homogeneous products and decides on the lowest-price. In addition to the price in consumer behavior, other factors such as income and factors as quality, service, promotion etc. However, the explanation of economic theory is mostly oriented towards the product, rather than to the consumer, paying particular attention to price and income.