Measuring Asymmetric Consumer Behavior towards Retail Buying: Application of Demand Equation Models

Abstract:     
This paper attempts to discuss the interdependence of variability in consumer behavior due to intrinsic and extrinsic retail environment which influence the process of determining the choices on products and services. Existing theoretical and methodological issues are reviewed in this study and a new framework has been proposed for future research in measuring customer value in specific reference to the new products as launching innovative and high technology products is a continuous process for the firms in the present competitive markets. Paper argues that suboptimal choice of consumers affect the demand of the products and services in the long-run and the cause and effect has been explained through the single non-linear equations. A system of demand equations which explains the process of optimization of consumer choice and behavioral adjustment towards gaining a long-term association with the market has also been discussed in the paper.

Number of Pages in PDF File: 32

Keywords: Econometric modeling, consumer economics, consumption behavior, market demand, retailing, transactional relationship

JEL Classification: C51, D11, L81, M31

working papers series