Behavioral Demand Theory

Behavioral Demand Theory suggests that people’s purchasing choices are influenced by psychological factors, such as habits, perceptions, and emotional responses, rather than just the product’s price or functionality. It emphasizes that demand is shaped by how individuals value and interpret products based on their behaviors and experiences. For example, a brand with strong emotional appeal can generate higher demand, even if similar products are cheaper. Overall, it highlights that consumer decisions are complex and driven by psychological tendencies, not solely by economic rationality.