Economic model of consumer behaviour, Marketing Research

Assignment Help:

Q. Economic model of consumer behaviour?

Economic model: Economic model of consumer actions is one-dimensional. This denotes that buying decisions of a person are governed by the concept of utility. Being a rational man he will create his purchase decisions with the intention of maximizing the utility.

Benefits

Economic model is on the basis of certain predictions of buying behaviour

(a) price effect-lesser the price of the product superfluous will be the quantity purchased

 (b) Lesser the price of the substitute product slighter will be the quantity of the original product bought (substitution effect)

(c) More the purchasing power extra will be the quantity purchased (income effect).


Related Discussions:- Economic model of consumer behaviour

Purchase discount of foreign bills, Purchase Discount of Foreign Bills : P...

Purchase Discount of Foreign Bills : Purchase or discount facilities in respect of export bills drawn under confirmed export contracts are generally granted to exporters who enjoy

Management approach to entrepreneurial theory, The management approach woul...

The management approach would advocate the position that entrepreneurs can be made. Discuss the management approach to entrepreneurial theory by making reference to the key researc

Difference between the estimated proportion small business, In 2009, Resear...

In 2009, Research New Zealand conducted a survey on small businesses in New Zealand. Small businesses were defined as enterprises with 19 or fewer employees. 501 small business

Surveying the available literature, Surveying the Available Literature: All...

Surveying the Available Literature: All available literature concerning the problem at hand must necessarily be surveyed and examined before a definition of the research problem is

Open policy, Open Policy : Also known as Floating Policy, it has much in a...

Open Policy : Also known as Floating Policy, it has much in a common with the Open Cover. This policy benefits clients with substantial turnover and a large number of despatches

MBA, PROCESS MARKETING INFORMATION SYSTEM.

PROCESS MARKETING INFORMATION SYSTEM.

Competing demands for resources, Competing demands for resources- Even thou...

Competing demands for resources- Even though the above student would like to buy a pickup truck on her sixteenth birthday she would rather have a computer moreover has money for on

Marketing, explain henry assael model

explain henry assael model

Explain spreading activation, Q. Explain Spreading activation ? Spreadi...

Q. Explain Spreading activation ? Spreading activation involves the proposal of one memory 'triggering' another one. For instance one might think of Coke every time one remembe

State the meaning of research, State the meaning of  Research. Introd...

State the meaning of  Research. Introduction: Research is an art of scientific investigation. Research covers search for and retrieval of information for a particular purp

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd