Discuss the below:
Consumer Behavior Model
Three consumers, A, B, and C, have recently purchased houses, one for each. All of them have exhibited varying behaviors toward buying the houses. The houses' costs, location, and specifications differ. The economic man model of consumers' behavior has a huge significance on the consumers' choices. This focus group displays the behavior of the different consumers (Kardes, Cronley & Cline, 2015).
Consumer A purchased their house based on their income level (Consumer Behavior - Models Types, 2017). With an income of $110,000 annually, the consumer carters for their expenses and have a huge disposable income. The consumer has been reviewing the cost of purchasing a home rather than renting or mortgage and from the evaluation has concluded that purchasing the home is economic. With just a few months of saving, the consumer has purchased a home in an urban region, few miles from their workplace.
Consumer B purchased their house based on its price (Consumer Behavior - Models Types, 2017). The consumer has a similarly high annual income as in consumer A's case. Also, the income fully pays for the consumer's incurred costs, and they are left with similarly high disposable income. Although the consumer had wanted to own a house, they had not started saving for the purchase. In a recent offer by a real estate firm, prices for homes were slashed for the period of the promotion. When the consumer viewed the offers for the homes - located in the local metropolitan area, they viewed the cost as economical compared to renting and opted to purchase the house since the money they had was enough.
Consumer B purchased their house based on the varying prices of similar houses. This consumer had resolved to buy a house close to their workplace. After enough budgeting and saving, the consumer, with relatively low annual income was ready to purchase a house. They conducted various researchers for the best house at the lowest price. Based on the substitution effect, the consumer preferred their chosen house over the other available houses (Consumer Behavior - Models Types, 2017).
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Consumer
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Income (Annual)
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Location
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Consumer Behavior Economic Effect
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A
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$110,000
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Urban
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Income
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B
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$100,000
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Metropolitan
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Price of Product
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C
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$55,000
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Metropolitan
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Price of Substitute
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Questions Asked to Focus Group
1. What product have you purchased?
2. What is your level of income?
3. Does your income carter for your bills?
4. Had you planned for this purchase?
5. Is the product economic for you? How?
6. Does the product satisfy you?