ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An economic model of consumer behaviour is one-dimensional, which means that decisions are made on the basis of utility. This model assumes that people will always be the same. It ignores differences between buyers and products, their values or interests, age, or gender.

Detailed explanation-2: -Economic model of consumer behavior It says that consumers want to meet their needs for the lowest price possible and enables companies to predict sales based on a product’s price and their customer’s income. For example, Wal-Mart offers a wide range of products at very low prices to serve its target audience.

Detailed explanation-3: -The various models of consumers (economic view, passive view, cognitive view, and emotional view) depict consumers and their decision-making processes in distinctly different ways.

Detailed explanation-4: -Consumer behavior is the study of individuals and organizations and how they select and use products and services. It is mainly concerned with psychology, motivations, and behavior.