CONSUMER BEHAVIOUR KEY POINT:-MEANING -CONSUMER BEHAVIOUR APPROACHES) *ORDINAL APPROACH (INDIFFERENCE CURVE) *CARDINALS APPROACH (UTILITIES) - CONSUMER PREFERENCES - FOCTORS INFLUENCING CONSUMER BEHAVIOUR - DEFINITION AND ASSUMPTIONS (TWO COMM(X,Y),Px,Py,AND Y - BUDGET LINE AND INDIFFERENCE CURVE - THE BUDGET EQUATION - OPTIMAL CHOICES OF GOODS / CONSUMER EQUILIBRIUM - INDIFFERENCE MAP - SHIFT IN BUDGET LINE (DUE TO CHANGE OF PRICE AND INCOME) * EFFECT OF PRICE CHANGE (SUBSTITUTION EFFECT _PCC) * EFFECT OF INCOME EFFECTS (INCOME EFFECTS YCC) * LIMITATION OF THEORY CONSUMER BEHAVIOUR Meaning A CONSUMER: is a person or household that buys a final product for use. CONSUMER BEHAVIOUR: is a study of how individual customers, groups or organizations select,buy , use, and dispose ideas,goods and services to satisfy their needs or wants. Understanding consumer behaviour is a key element of market strategy. In fact before implementing a strategy it is essential to fully understand the needs and expectations of the consumers you want to influence. Categories of consumer behaviour -complex buying behaviour -habitual buying behaviour -Variety seeking behaviour - Dissonance-reducing behaviour CONSUMER BEHAVIOR APPROACHES * Ordinal approach/ indifference curve: is a graph showing a combination of two goods that gives a consumer equal satisfaction and utility. REQUIREMENTS TO STUDY ORDINAL APPROACH # PREFERENCE OF TWO COMMODITIES (X,Y) # EXISTANCE OF TWO COMMODITIES (X,Y) # DEFINED BUDGETY # PRICE AND QUANTITY X # PRICE AND QUANTITY Y BUDGET LINE:
