Who is Consumer?

Who is Consumer?

A consumer is a person who purchases goods and services for the satisfaction of needs and wants. A consumer is the end-user of the goods and services and cannot resell them. The choice and need of the consumer for a good and service have a great impact on various decisions of an organization....

Importance of Consumer

A consumer creates demand for different products in the market. It means that the needs and wants of a consumer for different goods and services create its demand in the market and hence, the need to produce them. A consumer consumes not only goods, but also a variety of services. Hence, the consumers in a market enhance the diversification of different services. Examples of services are banking, health care, insurance, etc.  A consumer also plays a crucial role in increasing demand for consumer goods. Consumer goods are of two types: durable and non-durable goods. Durable goods are those consumer goods that have a life span of more than three years, such as television, refrigerator, washing machine, etc. However, non-durable goods are those consumer goods that have a life span of less than three years or can be a single use goods such as drinks, snacks, fruits, etc....

What is Consumer Behaviour?

The behaviour of a person is the way they act or behave in a certain situation. Every individual has different perspectives, opinions, views, wants, tastes and needs. Hence, consumer behaviour deals with the way consumers spend their income on different services and goods. For example, if a consumer has ₹2,000 and has different options to spend the money, like movies, clothes and food, there are different ways in which he can spend the money. He can either spend the whole amount on one option or distribute the amount among two or more options. The way in which the consumer uses his money will show his behaviour or consumer behaviour....

Who is Utility?

Utility is the want satisfying power of a consumer for a specific commodity. A consumer decides the demand for a good based on the utility he/ she derives from the consumption of that good. In simple terms, utility is the satisfaction gained by the consumer after the consumption of a specific good. Utility is subjective in nature, and hence, different individuals gain different levels of utility from the same good. The more a consumer needs a commodity after its consumption, the more will be the utility derived from that commodity. For example, a consumer who likes ice cream will derive more utility from its consumption than some other consumer who is not fond of ice cream....

Study of Consumer Behaviour

Cardinal Utility Approach...

Comparison between Cardinal and Ordinal Utility

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What is Cardinal Utility?

The two different measures of utility under cardinal utility are:...

Ordinal Utility

Indifference curve...