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a) Marshallian Economics
Alfred Marshall, who was an economist, believed that consumers buy their goods and services based on the satisfaction they get. Many people have criticized this theory and said that purchasing capacity also has an impact on the consumer. Some assumptions of this theory are-
- If there is a lower price of a product, sales of that product will be higher.
- When there are a product and substitute for that product, sales of the substitute will be greater if its price is lower than the price of the original product.
- When the income of consumers is higher, sales of a product will, therefore, be higher, provided the product is not an inferior one.
b) Psychoanalytic Theory
Sigmund Freud, the Austrian founder of psychoanalysis, developed this theory. He believed that humans are not able to fully understand their own motivations because the psychological factors that shape them are largely unconscious. According to this theory, consumers respond to symbolic concerns as much as they respond to those of economics. Freud said that external factors like age, income cannot have a full impact on the behavior of the consumer. Because the motivation they have to purchase the product is in the psyche. That’s why he said marketing messages that involve sentiments, emotional character affect largely.
c) Pavlovian Theory
Ivan Pavlov, a Russian psychologist, developed this theory. In theory, he used to ring a bell before feeding to a dog and eventually it came out after some time he could eventually get the dog to salivate just by ringing it. In marketing, marketers while establishing a brand or re-inventing it, they can simply use this theory to create or change consumer’s habit.
d) Veblenian Social-Psychological Model
Economist Thorstein Veblen suggested that humans are social creatures that conform to the standards of the culture and subgroups in which they live. He believed in the formula that individual’s needs and wants are influenced by their group. Veblen focused his theory on members of society’s “leisure class,” whom he hypothesized were influenced by the desire for prestige rather than utilitarian need fulfillment. By understanding this theory, marketers can focus on social influences that impact the consumers to increase the demand for the product.
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