ECONOMICS
CONSUMERS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Consumers have preferences among the various goods and services available to them.
|
|
|
Consumers face budget constraints which put limits on what they can buy.
|
|
|
Consumers may not be as rational and well-informed as economists make them out to be.
|
|
|
Consumers ignore the information they obtain and tend to make more irrational than rational
|
Detailed explanation-1: -Behavioural economics studies how a customer’s purchasing choices are influenced by factors that are seemingly unrelated to the product itself. These factors can be psychological, cognitive, emotional, cultural or social.
Detailed explanation-2: -The economic theory on consumer behaviour by Alfred Marshall is based on the assumptions that the consumers cannot influence the price of any product in the market due to which they need to act rationally and try to measure their utility for the product to compare it with the price.
Detailed explanation-3: -Engel Kollat Blackwell Model This theory of buyer behavior operates on a four-phase process that influences how consumers make purchasing decisions: input, processing information, decision stages, and variables in the decision-making process.