Consumer Behavior Principles and the Economy

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The response addresses the queries posted in 1086 words with references.

//While writing this kind of paper, first of all, we will provide a brief definition of consumer behavior along with the identification and relation of the consumer behavior principles to the existing economic position in the United States. Moving further, we will describe how 'Verizon' responds to the economic struggles.//

Consumer behavior basically relates to the behavior depicted by the customers towards different products offered in the market. It helps in having an understanding regarding the tastes and preferences as well as the decision making process of the consumers. The economy of United States has experienced a terrible downfall as a result of recession and the present condition shows that it has still not completely come up out of the crisis situation. Recession refers to the decline in the economic activity inside the economy which lasts for few months or even more than that. The resultant effect can easily be seen in the GDP, industrial production, real income, wholesales-retail sales and employment (Mullen & Johnson, 1990).

Constant efforts are being made by the economy of the United States to deal effectively with the crisis and novel ways are being discovered. With the companies experiencing a collapse, consumers have been the ones who are worse affected. Difficulty in getting better quality products and unavailability of needed goods has a significant impact on the purchasing power of the customers. A variety of factors affect the consumer behavior patterns which includes the culture of the economy, locality, sub-culture, ethnicity, royalty, social class, family, lifestyle, reference groups and marketing mix factors. Recession has brought extensive changes in all these factors which require that the consumer behavior principles should be framed in such a way ...