1. How is consumer behavior defined? Consumer behavior involves understanding the set of decisions

(what, whether, why, when, how, where, how much, and how often)

that an individual or group of consumers makes over time about the acquisition, use, or disposition of goods, services, ideas, or other offerings. The psychological core exerts considerable influence on consumer behavior. A consumer’s motivation, ability, and opportunity affect his or her decisions and influence what a person is exposed to, what he or she pays attention to, and what he or she perceives and comprehends. These factors also affect how consumers categorize and interpret information, how they form and retrieve memories, and how they form and change attitudes. Each aspect of the psychological core has a bearing on the consumer decision-making process, which involves (1) problem recognition, (2) information search, (3)

judgments and decision making, and (4) evaluating satisfaction with the decision.