BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.theory of consumer behavior
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2.consumer preferences
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3.consumer choices
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4.none of the above
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Detailed explanation-1: -Consumer behaviour theory is the study of how people make decisions when they purchase, helping businesses and marketers capitalise on these behaviours by predicting how and when a consumer will make a purchase.
Detailed explanation-2: -Through maximizing utility, the consumer will buy an item that produces the greatest marginal utility with the least amount of spending. For example, if product ‘A’ comes with twice more marginal utility than product ‘B, ’ that means product ‘A’ is providing more marginal utility per dollar than ‘B.
Detailed explanation-3: -The theory entails that if a consumer purchases a specific bundle of goods, then that bundle is “revealed preferred, ” given constant income and prices, to any other bundle that the consumer could afford. By varying income or prices or both, an observer can infer a representative model of the consumer’s preferences.
Detailed explanation-4: -The theory of consumer behaviour asserts that, the consumer as a rational person who endeavours to spend his or her income on products and services that yields the greatest level of satisfaction or utility.