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.
Theory of Consumer Behaviour
Consumer Behaviour is the study of individual customers, organizations, or groups’ behaviour while selecting, purchasing, using, and disposing of goods, ideas, and services so they can meet their wants and needs. In simple terms, consumer behaviour is the study of consumers’ actions and reactions in the marketplace and the reason behind their actions.