1. The document discusses consumer behavior and the concept of utility maximization. It defines consumer behavior as how individuals, groups, and organizations select, buy, use, and dispose of goods and services to satisfy their needs and wants.
2. It also defines utility as the satisfaction gained from consuming goods and services. Utility maximization means making choices that provide the highest level of consumer satisfaction within a budget. Consumers maximize utility by determining which combination of goods provides the greatest benefit.
3. The document outlines factors that influence consumer behavior like culture, social factors, personal characteristics, and psychology. It emphasizes the importance of understanding consumer behavior for marketers in today's customer-oriented market.
Used in Economics with TAR.
includes discussion on mixed economy, characteristics, advantages and disadvantages of mixed economy, types of mixed economy, features of mixed economy, best and worst practices in mixed economy and model countries.
The theory that was made by Karl Marx and Friedrich Engels during the Industrial Revolution. In that period, there were many inventions of machines. As a result, the men's work had been easier and better. Accordingly, the concept of Capitalism was born. However, it had consequences in the society.
These slides include the different concepts of cardinal utility analysis and briefly show the assumptions, TU and MU, Law of diminishing utility analysis, and the law of equi-marginal utility, and finally, includes the limitations of cardinal utility analysis.
Used in Economics with TAR.
includes discussion on mixed economy, characteristics, advantages and disadvantages of mixed economy, types of mixed economy, features of mixed economy, best and worst practices in mixed economy and model countries.
The theory that was made by Karl Marx and Friedrich Engels during the Industrial Revolution. In that period, there were many inventions of machines. As a result, the men's work had been easier and better. Accordingly, the concept of Capitalism was born. However, it had consequences in the society.
These slides include the different concepts of cardinal utility analysis and briefly show the assumptions, TU and MU, Law of diminishing utility analysis, and the law of equi-marginal utility, and finally, includes the limitations of cardinal utility analysis.
Budget line is a graphical representation of all possible combinations of two goods which can be purchased with given income and prices, such that the cost of each of these combinations is equal to the money income of the consumer.
Just an extension to the demand theory for ISC economics, this chapter discusses consumer equilibrium with utility approach. Especially when goods are free, priced and two commodity case.
Budget line is a graphical representation of all possible combinations of two goods which can be purchased with given income and prices, such that the cost of each of these combinations is equal to the money income of the consumer.
Just an extension to the demand theory for ISC economics, this chapter discusses consumer equilibrium with utility approach. Especially when goods are free, priced and two commodity case.
Running head PRINCIPLES OF MARKETING1PRINCIPLES OF MARKETING.docxglendar3
Running head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING 1
Week 4 Writing Assignment Marketing
Principles of Marketing
Professor Engle
April 12, 2020
Part 1 - Consumer Behavior: How People Make Buying DecisionsConsumer Buying Behavior
Consumer behavior is explained as the selection, buying and consumption of goods or services to fulfill their wants that lead towards satisfaction. Consumer behavior usually involves different processes. First of all, the consumer efforts to find those commodities to which he would provide more utility and would like to consume. Then consumers estimate the money that he has to spend on buying commodities. At last, the consumer makes a comparison of the prices of commodities and after that, if it is suitable then he takes the final decision of buying commodities of his choice.
Product/Service: I am selecting refrigerators as a product that I will offer to customers.
1) Consumer Behavior Model- Environmental Factors
Many environmental factors affect consumer buying behavior like political environment, economic environment, social environment, technological environment, and cultural environment. I will elaborate on only the two more targeted in the present scenario.
The Technological Environment
Technology has brought much advancement not only to products and services, but it also has changed the way of promotional activities. Now there are a variety of features that are introduced like flex-zone, air filtration, adjustable shelves, spill-proof digital shelves, full extension drawers, full-width pantry drawers, electric temperature control, door alarms, designer LED lighting, under counter ice makers, under counter Kegerators. All these advancements are just due to technological advancement. Now the buying behavior of the consumer has changed and they prefer the latest technological product.
Technologies also alter the promotional mix in another significant way: They change the way firms market their products and services. Revolutionary changes originated through the internet, which introduces marketers to a new source that is fully supported for the promotion of goods and services. Marketers should follow technological improvements and adapt their approaches, to take benefit of the opportunities.
The Cultural Environment
Culture can be defined as the combination of art, customs, knowledge, morals, beliefs, value and habits acquired by society. Culture sets certain limitations on behavior that called norms and defilement of these cultural norms consequences in the formation of sanction. Both norms and sanctions affect the consumption pattern. Every society makes its own culture and that influences the choices, wants and behavior of consumers. Chinese don’t prefer durability while the Japanese prefer it. Like people of Islamic countries do not like and permit live-in relationship, it is the culture of Islamic countries, so unmarried live alone and prefer mini-fridge. While in Europe and other c.
Running head PRINCIPLES OF MARKETING1PRINCIPLES OF MARKETING.docxtodd581
Running head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING 1
Week 4 Writing Assignment Marketing
Principles of Marketing
Professor Engle
April 12, 2020
Part 1 - Consumer Behavior: How People Make Buying DecisionsConsumer Buying Behavior
Consumer behavior is explained as the selection, buying and consumption of goods or services to fulfill their wants that lead towards satisfaction. Consumer behavior usually involves different processes. First of all, the consumer efforts to find those commodities to which he would provide more utility and would like to consume. Then consumers estimate the money that he has to spend on buying commodities. At last, the consumer makes a comparison of the prices of commodities and after that, if it is suitable then he takes the final decision of buying commodities of his choice.
Product/Service: I am selecting refrigerators as a product that I will offer to customers.
1) Consumer Behavior Model- Environmental Factors
Many environmental factors affect consumer buying behavior like political environment, economic environment, social environment, technological environment, and cultural environment. I will elaborate on only the two more targeted in the present scenario.
The Technological Environment
Technology has brought much advancement not only to products and services, but it also has changed the way of promotional activities. Now there are a variety of features that are introduced like flex-zone, air filtration, adjustable shelves, spill-proof digital shelves, full extension drawers, full-width pantry drawers, electric temperature control, door alarms, designer LED lighting, under counter ice makers, under counter Kegerators. All these advancements are just due to technological advancement. Now the buying behavior of the consumer has changed and they prefer the latest technological product.
Technologies also alter the promotional mix in another significant way: They change the way firms market their products and services. Revolutionary changes originated through the internet, which introduces marketers to a new source that is fully supported for the promotion of goods and services. Marketers should follow technological improvements and adapt their approaches, to take benefit of the opportunities.
The Cultural Environment
Culture can be defined as the combination of art, customs, knowledge, morals, beliefs, value and habits acquired by society. Culture sets certain limitations on behavior that called norms and defilement of these cultural norms consequences in the formation of sanction. Both norms and sanctions affect the consumption pattern. Every society makes its own culture and that influences the choices, wants and behavior of consumers. Chinese don’t prefer durability while the Japanese prefer it. Like people of Islamic countries do not like and permit live-in relationship, it is the culture of Islamic countries, so unmarried live alone and prefer mini-fridge. While in Europe and other c.
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
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Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
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2. Objectives :
1. Determine the Consumer Behavior and the Concept of Utility
Maximization
2. Analyze their own purchase patterns to become more critical
consumers and integrate the Utility Maximization in everyday lives
and ;
3. Explain the importance of Consumer Behavior and Utility
Maximization.
9. Consumer is the central point and all the marketing activities revolve
around him, manufacturer produces what the consumer wants. As
the consumer behavior differs from the person to producer most
understand it.
10. What is Costumer?
Buys the product from businesses. They are the one who purchase
the product either for resell or they purchased the product for others.
11. What is Consumer?
• Uses the business product. They are the one who consume the
produced goods and services produced by the manufacturer.
12. CONSUMER BEHAVIOUR
Study knowing how individual costumers, group or organizations
select, buy, use, and dispose ideas, goods and services to satisfy their
needs and wants.
13. TYPES OF CONSUMER BEHAVIOUR
There are four main types of consumer behavior:
14. 1. Complex buying behavior
• This type of behavior is encountered when consumers are buying an
expensive, infrequently bought product. They are highly involved in
the purchase process and consumers’ research before committing to
a high-value investment.
2. Dissonance-reducing buying behavior
• The consumer is highly involved in the purchase process but has
difficulties determining the differences between brands. ‘Dissonance’
can occur when the consumer worries that they will regret their
choice.
15. 3. Habitual buying behavior
• Habitual purchases are characterized by the fact that the consumer
has very little involvement in the product or brand category.
4.Variety seeking behavior
• In this situation, a consumer purchases a different product not
because they weren’t satisfied with the previous one, but
because they seek variety.
16. DEFINITION BY AUTHOR’S
“Consumer Behavior is the actions and decision process of
people who purchase goods and services for person’s
consumption.”
-Engel, Blackwell and Mansard
“Consumer Behavior is the decision process and physical
activity, which individuals engage in when evaluating, acquiring,
using or disposing of goods and services.
-Louden and Bitta
17. Factors affecting consumer behavior
A. Cultural factors
A buying decision is affected by culture. These are the two
important things that influences the consumer buying behavior:
1. Culture - Set of values and ideologies of a particular groups of
individuals or community. It is the culture of an individual which
decides the way he/she behaves. In simple words culture is nothing
but the values of an individual. What an individual learns from his
parents and relatives as a child, becomes his culture.
2. Subcultures - such as religion, age, geographical location, gender
and status. Consumers within subcultures will have a perceived sense
of identity and follow an expected set of behaviors.
18. B. Social factors
Plays an essential role in influencing the buying decision of
consumers it includes reference groups, family, roles and
status.
1. Reference groups – every individual has some people around who
influence him/her in any way. It comprises of people that individual
compare themselves with. Every individuals know some people in
our society who become their ideal in due course of time. Co-
workers, Family members, relatives, neighbors, friends seniors at
workplace often from reference groups.
2. Family – A consumers family has a major impact on attitude and
behavior. Many consumer decisions are made by family members
on behalf of the family, so understanding the family consumer
decision making dynamics around your product is essential.
3. Roles and status – A role consist of activities, a person expected to
perform. Each role carries a status. People choose product that
reflect and communicate their role and actual or desired status in
society.
19. C. Personal Factors
A buyers decision are also influence by personal
characteristics.
1. Life cycle – People buy different goods and services over a
lifetime. The life-cycle of the person begins with child birth,
teenage, adulthood, middle-age, old age and then ends with
death. Under each stages, people’s buying behavior is
different.
2. Occupation – it also influence consumption patterns. The
occupation of a person decides his ability to purchase a goods
or services.
20. D. Psychological factors
It’s also affects consumer buying decision
1. Perception – what an individual thinks about a particular
product or services in his/her perception towards the same. In
marketing, perception is more important than the reality as it is
perception that will affect consumers actual behavior.
2. Learning – describe changes in an individual’s behavior arising
from experience. Learning is the process of acquiring knowledge
about products, their benefits and methods of usage and also
disposal of product after use.
21. Importance of study of consumer behavior
In olden days, the importance of consumer behavior was not realized
because it was seller’s market but modern market is customer
oriented.
During old days it was very easy to the marketer to sell their goods
and services to the market because due to less competitors present
in to the market.
Customers force to avail the product and the price offered by the
manufacturer due to no close substitute or no competitors.
It was very hard for them to make the selection or choice. But today’s
market has full of competitors, if any of the marketer trying to use
their monopoly the customer will shift to the closest substitute or
even to their competitors.
It is very important for the marketers to understand the needs, taste,
wants and mostly the behavior of the consumers.
23. UTILITY
Utility is the satisfaction, value, or benefit gained from the
consumption of a good or service
Utility benefit a person gets from consuming a good or service.
For example, utility is the satisfaction a person gains from
eating a piece of chocolate cake. It's important to understand
that the concept of utility is a relative concept. Different people
gain different levels of satisfaction from eating chocolate cake,
depending on their preferences.
24. UTILITY MAXIMIZATION
Utility maximization means making economic decisions that
guarantee the highest level of consumer satisfaction (benefit).
Consumers maximize utility by determining the combination of
goods and services that guarantee maximum benefit.
An example is when a consumer decides to purchase more of
"Product A" and less of "Product B" because this combination
guarantees more benefit (utility) per dollar.
25. MARGINAL UTILITY
Marginal utility is the additional satisfaction gained when an
additional unit of a good or service is consumed. Marginal utility
is also known as marginal benefit, and it can also reference the
highest amount a consumer is willing to pay for one more unit
of a good or service.
26. MARGINAL COST
The marginal cost is the change in total production cost that
comes from making or producing one additional unit .
Marginal cost is the increase or decrease in the total cost a
business will incur by producing one more unit of a product or
serving one more customer.
27. INCOME /BUDGET CONSTRAINTS
Consumers have always had limited income which restricts how
much they can consume. They can’t just keep buying products.
They must consider their budget and what they can afford. That
limit the quantity of goods and services that they can buy.
But people have limitless wants and needs. So we are constantly
experiencing budget constraints.
When faced with budget constraints consumers must carefully
choose how spend their limited income when buying two or
more different goods in order to maximize their utility.
28. Remember that Utility Maximization is not only about consumers
spending or purchasing goods and services that provide them
greatest satisfaction but it is also about achieving the highest
utility while spending less.
29. Utility Maximization Rules
There are few simple rules to follow when finding the utility maximizing
combination of goods and services for consumer.
All income will be spent without exceeding budget.
Only two goods will be purchased.
The good with the greater marginal utility will be purchased next.
30. The consumer will always choose the good that provides a
greater marginal utility. Obviously, if the next of one good
provide more utility, then the next unit of another good, a
consumer will choose the good that satisfy more needs and
wants first. If we follow these rules, we should have no trouble
finding the bundle of goods that maximize a consumer’s utility.
Consumer Maximize their utility by determining the
combination of goods and services that guarantee maximum
benefit.
31. GENERALIZATION
It is important for us individuals and as consumers to learn how
to maximize our utility because it allows us to satisfy our need
within budget limitations.
32. Quiz:
Identify what is being asked on the following question. Write your
answer on the space provided.
_________ 1. Study how individual costumers, group or organizations
select, buy, use, and dispose ideas, goods and services to satisfy their
needs and wants.
_________ 2. Utility benefit a person gets from consuming a good or
service.
_________ 3. It means making an economic decisions that guarantee
the highest level of consumer satisfaction.
_________ 4. It refers to the additional satisfaction that the consumer
achieves from utilizing one additional item.
__________ 5. The central point and all the marketing activities revolve
around him, manufacturer produces what the consumer wants.
33. ASSIGNMENT:
Essay. Answer BRIEFLY AND CONCISELY in two paragraph.
1. Discuss your understanding about Consumer behavior and Utility
maximization.
2. Why is it Important to study consumer behavior and the concept of
utility maximization? And as a consumer, how are you going to maximize
your utility when facing budget constraints. Cite an example.
FEATURES POINTS
Makes a strong support/evaluation of statement, depth, logically organized
and well-constructed thoughts and responsive to what asked.
5
Good support/evaluation of the statement. Clear but could have been
powerful, was not able to hit his exact thoughts
3
Unrelated answer but there was an effort 2
No answer. 0
34. Prepared By:
Group 3
oMae Zairel Galvan
oJohn Eduard Delos Santos
oJoshua San Felipe
oDonna Marie Onquit
oJuliana Aubrey Saculo