CHAPTER ONE
1.0 INTRODUCTION
The effectiveness of any marketing activities does not solely depend on the ability to offer competitive range of product and services rather sack up extensive campaigns for success, knowledge of the influences which affect buying preferences, is called for.
Acknowledgement of how buyers behave in the purchase of goods and services, either as consumers or producers of good and services, is very important to marketers aimed with this knowledge, the marketer can manage the marketing functions more effectively and more profitably. This is because Marketers will be able to understand and predict how the consumers or users of his product will react to marketing stimuli. With this he would be able control within the limits of the stimuli from the external environment which marketer does not control therefore emphasis will be channeled toward consumer behaviour.
1.1 Background of the Study
The history of consumer behaviour is as old as the hills although historically, it was not called consumer behaviour. Adam was the first consumer when he ate the apple offered to him by his wife Eve. Human being have always looked for food, first as a hunter and later as a farmer. In past centuries, that nobility and clergy may have had enough to eat but the ordinary people often went hungry, as food was a scare resources.
In this century, consumer behaviour has become a subject of investigation. After consumer no longer had to struggle to survive and when choice among different alternative become possible. It became important for producers to investigate the criteria of consumer needs or choices. If household income is more than needed for basis rents, food and clothing, discretionary choice emerges, so discretionary income is the income a household can spend freely, after covering this basic needs.
Discretionary income first developed in the “higher” social classes and after that it become available to the working classes. However, there are still household in Europe and the rest of the world with low income which in practical terms do not have any discretionary income at their disposal.
Several stages of scientific research of consumer behaviour have been described. In each of these stages, a particular approach, point of view, theory or model prevail. The first stage is the pre-scientific stage in which consumer behaviour is observed and discussed from a philosophical and socio – critical point of view.
Thorstein, V. (1899) view conspicuous consumption as “the demonstration of affluence in clothing, housing, parties and insure of the upper class”. Consumption is an expression of power and status. The member of the “idle” class competes in this demonstration of richness and extravagance.