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Consumer Behavior Theories

Consumer behavior theories strive to explain the conduct of users of a project. These theories are mostly founded on renowned principles of economics and the experiences of marketers. Also, there are those theories that employ the use of social sciences. Consumer theories help economists and marketers understand why consumers act the way they do. Some of the popular consumer behavior theories include:

  • Modern or contemporary theories
  • Traditional theories
  • Sociological theories
  • Psychological theories


Over time, the purchasing power or ability of a currency like the American dollar might decline. This is what is known as inflation. How can we know or estimate the rate at which the purchasing power of the currency is declining? Well, the decline will always be reflected in the average price of goods and services in an economy over a given period. The increase in the price of goods usually denotes that a particular unit of currency now buys fewer products compared to previous periods.

Regression Analysis

Regression analysis is a method in statistics used to identify trends and patterns in data. For example, if you want to know if the salary that you are earning is associated with the amount you are spending, regression analysis can help you with this. It will provide you with the correlation coefficient and the p-value which confirms if your model is accurate or not. Regression analysis encompasses both elementary concepts like linear regression and scatters plots as well as advanced techniques like multiple regression.

Financial Statistics

It involves the use of financial data to summarize past trends or predict future patterns associated with financial securities. Financial statistics can be categorized as:

Global or national statistics

These statistics analyze the economic factors that affect the value of securities

Market Statistics

 These types of statistics focus on a set of securities that exist in the same trading market category

Company-specific statistics

These statistics evaluate the financial well-being and performance of individual organizations.