The theory of consumer behavior

theory of consumer behavior is designed to take into account several restrictions that do not allow a person to acquire whatever he wants.To one of the means of limiting the budget include deterrence.Revenues of every person in varying degrees, are limited.In this case the theory of consumer behavior such as restrictions on the acquisition due to the limited budget.Another deterrent is the cost of the desired benefits.All good on the market, endowed with a certain price.Formed price goods from their production costs resulting from the need to use in the production of rare and expensive resources.

mechanisms and theory of consumer behavior based on certain provisions.

first is a plurality.The needs of the whole society, and human beings in particular are large enough and diverse.In this regard, they provoke a variety of benefits that can help meet the needs.The theory of consumer behavior, with regard to choice, presupposes the existence of several possible options in a given period of time.In other words, the man is always a good choice.

the following provision, which is based on the theory of consumer behavior, is sovereignty.He expressed the possibility of a person to make their own (individual) decision on the acquisition of or other benefits, without causing a decisive influence on the manufacturer.At the same time the mechanism of the market, summing up a large number of individual decisions of consumers, bringing them together to manufacturer.When selecting certain people to purchase their goods and the payment of a certain value, the manufacturer receives these benefits not only profit, but also the right to the subsequent development of production.Consumer sovereignty includes the ability of consumers to influence manufacturers.In other words, this man's power over the market, which is expressed in the ability to determine how much and what kind of benefits you must produce.

important factor contributing to the formation of consumer choice, is the system of preferences.The same (identical) goods can bring different benefits to different people.Each customer has its own specific set of life values.A single objective scale, which allows to determine the utility of this or that good does not exist.However, each person has its own subjective scale of preferences.The rationale in this case is considered to be the behavior of a person, in which he is aware of the required set of benefits it is able to compare the different sets, choosing the best for himself.

quantitative (cardinal), the theory of consumer behavior in the process of solution of the problem involves the likelihood of measurable utility.In this case, it is assumed that the consumption of goods, it is possible to measure a useful amount.Thus, the measure may contribute to the definition of the difference between the goods.

the basic provisions of the theory of consumer behavior is a requirement to decrease the marginal utility.Thus, it is possible to formulate a rule equilibrium.Consumer equilibrium is achieved in a situation in which a person with a limited budget is not able to increase the usefulness of the overall expenditure in the less funds to the benefit of one or more - for the purchase of another.A rational person would seek to acquire something that will bring the greatest benefit.