GENERAL KNOWLEDGE

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: -revealed preference theory, in economics, a theory, introduced by the American economist Paul Samuelson in 1938, that holds that consumers’ preferences can be revealed by what they purchase under different circumstances, particularly under different income and price circumstances.

Detailed explanation-3: -Utility maximization is the concept that individuals and organizations seek to attain the highest level of satisfaction from their economic decisions. Utility function measures the intensity to which an individual’s fulfillment is met.

Detailed explanation-4: -What Is Demand Theory? Demand theory is an economic principle relating to the relationship between consumer demand for goods and services and their prices in the market. Demand theory forms the basis for the demand curve, which relates consumer desire to the amount of goods available.