1. Understanding Consumer Behavior- Consumer behavior explores why, when, and how people make purchasing decisions.- It involves studying individual and group decision-making processes influenced by preferences, budget, past experiences, and societal norms.- Example: Choosing a cereal brand based on personal preferences and budget constraints.2. Models of Consumer Behavior- Howard and Sheth's model: Inputs (stimuli) lead to observable actions (outputs), considering significative, symbolic, and social factors.- Engel-Kollatt-Blackwell model: Views consumers as active decision-makers following rules in gathering information and making purchase decisions.3. Buyer Decision Processes- Buyer decision processes involve steps before, during, and after purchase, starting with recognizing a need, researching options, making a decision, and evaluating the experience.- Psychological factors like motivations, emotions, and social influences play a crucial role.4. Analyzing Consumer Buying Decisions- Economic models: Assume consumers are rational decision-makers seeking to maximize utility based on perfect knowledge.- Psychological models: Focus on internal processes, motivations, emotions, and cognitive aspects, influenced by cultural and family factors.- Consumer behavior models: Blend economic and psychological aspects, considering both rational and emotional influences.5. Herbert Simon's Perspective- Herbert Simon challenges the idea of perfectly rational economic decision-making, highlighting the complexity of decision processes.- He emphasizes limited information processing abilities and the influence of emotions and non-rational considerations.- Economic decision-making is seen as a challenging task due to these complexities and human cognitive limitations.