Approaches to Consumer Theory
Consumer theory is the branch of economics that studies how individuals and firms make decisions about what goods and services to buy, how much to buy, and from whom to buy them. There are two main approaches to consumer theory – the economic approach and the behavioral approach.
The economic approach to consumer theory assumes that consumers are rational and make decisions based on their self-interest. This approach emphasizes the importance of understanding the demand for products and services and how it is affected by changes in prices, incomes, and other external factors.
The behavioral approach to consumer theory takes into account the psychological aspects of decision-making. This approach focuses on understanding the psychological motivations behind why consumers make the decisions they do, and how these motivations can be harnessed to influence consumer behavior.
- What factors influence consumer decisions?
- What are the implications of consumer theory?
- What is the difference between the economic and behavioral approaches to consumer theory?
- What are the implications of the economic approach to consumer theory?
- What are the implications of the behavioral approach to consumer theory?
- What is the role of income in consumer theory?
- How do changes in prices affect consumer decisions?
- What is the effect of advertising on consumer decisions?
- How do changes in external factors affect consumer decisions?
- How can marketers use consumer theory to increase sales?