This presentation includes notes collected from various sources from internet during my study journey with regard to the topic Consumer Behaviour

1. CONSUMER BEHAVIOUR

2. • The consumers' five steps of adopting a new product refer to which of the following:
Awareness, interest, evaluation, trial, adoption
• The psychological factors influencing consumer behavior are :motivation, perception,
learning, beliefs and attitudes
• Social class group which earns through exceptional ability is best classified as : lower
uppers
• Person's own living or interacting and acting pattern is classified : lifestyle
• The desire to have a commodity or service is called: want
• Welfare definition of Economics was given by: Alfred Marshall
• A book “The Nature and significance of Economic Science” is written by: Lionel Robbins
• The goods which satisfy human wants directly are called: Consumers’ good
• By making a table, a carpenter creates: Form utility

3. • The satisfaction of human want is called: Consumption
• Health is not wealth because it has no : Marketability
• Motor car for a busy doctor is a : Necessary
• When Marginal utility diminishes, total utility : Increases at a diminishing rate
• The law of equi-marginal utility is otherwise called as : Law of substitution
• The marginal utility curve is: Downward sloping
• “Change in demand” occurs due to the change in : Income, Prices of related goods, Taste
and preference.
• In case of perfectly elastic demand, demand curve becomes : Horizontal
• In case of Unitary elastic demand, the value of Ed is: One
• The demand curve of Giffen goods is: vertical
• When MU is zero, TU is: Maximum

4. • In case of perfectly elastic demand, the value of Ed is : Infinite.
• The elasticity of demand for goods used for alternative purposes is: Elastic.
• In case of perfect substitutes, the elasticity of demand is: Infinite
• The demand for necessaries is: Inelastic
• Wrist watch for a college student is a: Necessary
• The demand for comforts is: Elastic
• In case of perfectly elastic, demand curve is: Horizontal
• In case of unitary elastic, demand curve is: Rectangular hyperbola
• The demand for commodity on which a consumer spends more percentage of his income is:
More elastic
• In case of relatively more elastic, demand curve is: Flatter

5. • Religion is a sub culture.
• The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered
and whose members share similar values, interests, and behavior constitute : Culture
• A person's reference groups consist(s) of all the groups that have a direct (face-to-face) or indirect
influence on his/her attitudes or behavior.
• The family in a buyers life consisting of parents and siblings is the family of orientation.

29. • Advertising, sales promotions, salespeople, and publicity : can influence the consumers’
thoughts about products
• Marketers can create brand equity By selling them in prestigious outlets
• If the purchase is for a high-involvement product, consumers are likely to develop a high degree of
Product knowledge so that they can be confident that the item they purchase is just right for them.
• A culture is a group of people with shared value systems based on common life experiences and
situations.
• Even though buying roles in the family change constantly, the Wife has traditionally been the
main purchasing agent for the family.
• The basic premise of the self-concept is that people’s possessions contribute to and reflect their
identities; that is, “we are what we have.”
• A Motive is a need that is sufficiently pressing to direct the person to seek satisfaction of the need.
• A good synonym for motive is a(n) CUE.
• According to Maslow’s Hierarchy of Needs, the lowest order of needs are called :self-actualization
needs.

31. • The higher-order (self-esteem and self-actualization) and lower-order (physiological, safety, and
love)

32. • A giffen good is a product that people consume more of as the price rises and vice versa—violating the
basic law of demand in microeconomics.

33. • A GIFFEN GOOD is an inferior good only with certain peculiarities like
• →should not have readily available substitutes
• →should be using up persons major income
• Eg- coarse cereals ,even if price increases poor people are forced to consume it
because they would not have left out with money to go for other food items
• all giffen goods are inferior but all inferior goods may not be giffen