Theoretical models of consumer behaviour: a literature review

Abstract

The purpose of this study is to present the evolution of theories that have influenced consumer buying decision processes in a unique way. Consumer behaviour is the study of how individual customers or groups of organisations, select, buy, use, and dispose ideas, goods and services to satisfy their needs and wants. Marketers use theories of consumer behaviour to explain how consumers behave and to segment the market for consumers. Marketers make use of several theories of consumer behaviour, namely, traditional theories and contemporary theories. Traditional theories are based on economic principles or experiences of marketers, whereas modern theories are associated with empirical results. The concept of empirical means something that can be observed or measured. The theory of consumer behaviour is an explanation of facts in an orderly manner. However not all theories of consumer behaviour are good or sound. A sound theory of consumer behaviour describes both behaviour and the nature of the behaviour. Thus consumer behaviour theories are used to understand and predict the behaviour of consumers. To that end this study makes use of two important groups of theories, namely, the Buyer Behaviour theory and the theories of reasoned action. These theories will help us to conduct research on different aspects of consumer behaviour. Therefore the strengths and weaknesses of these theories are documented.