Permanent Income Hypothesis

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The Permanent Income Hypothesis: This Hypothesis was given by Prof. Milton Friedman. This hypothesis told that there is proportional relationship between permanent consumption and permanent income. He change the concept of current income into the permanent income.before Permanent Income Hypothesis argue that appropriate utilization function are relates with permanent utilization to permanent income. It says that the long run utilization income is proportional in relationship. change in stable income give increase to proportional changes in stable consumption. Life Cycle Hypothesis: This hypothesis was given by later by Branberg and Modigliani Albert Ando. This hypothesis is a permanent wealth hypothesis instead of permanent income hypothesis.…show more content…
The importance of brand loyalty and repeat purchase makes learning theory more important in marketing field.In the learning theory there come two theories first one is stimulus response theory and second one is cognitive theory. In stimulus response theory contributors are Purlon,Skinner Thorindike and Kotlew.According to this theory the most common and current stimuli are remembered and responded. The cognitive theory was presented by Festinger mainly According to it stimulation and desires are conditioned by a consumer’s knowledge, beliefs, his perception and attitudes. Psycho-analytic theories: This theory was created from the idea of Sigmund Freud. He describe that the personality has three basic proportions, the id, the ego and the super ego.The consumer behaviour is a function of these three systems. Here the id urges an enjoyable act, the super ego present the moral issues involved and the ego acts as determining where to continue or not.This has lead to motivational research and proved helpful in analyzing buyer’s behaviour. This has contributed in some helpful insights in the advertising and packaging…show more content…
It is imperative for an advertiser to see every one of these variables to know with reference to why purchaser acts in the way he or she does and how his or her mind is adapted and affected. consumer behaviour theories help to understand consumer behaviour. Family: There is a part specialization and each individual from the family has a particular part to play in making the family buys. It is possible that the purchaser may be impacted by the inclinations of alternate individuals from the family group or the choice has developed out of the agreement of feeling among the relatives. For an advertising man it is imperative to distinguish these individuals and their separate purchasing parts. Reference Group: The idea of reference group was started by Hyman in 1942 to describe the kind of group utilized by a person as a state of reference for his own judgment, behaviour and belief. The reference group will influence the level of yearning and kind of conduct through building up ordinary examples of individual use. Opinion

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