7. Inheritance According to the We will understand principle of inheritance , a consumer’s behavior is condition by his or her past experiences. Contrary to what one might believe, the increase or decrease in a person’s income has less influence on the purchase decision.
Imagine that a person is unemploy and nes to save money on his grocery shopping. According to the principle of inheritance, the habit of buying a more expensive soap will have more influence on the final decision than the person’s budget.
Current theories of consumerism (21st century)
According to Marc Lavoie , the key consequence of post-Keynesian consumer theory, in particular the subordination principle, is that the utility index can no longer be represent by a scalar curve, which grows continuously with no prospect of an end.
That is, we cannot imagine that a person will always ne a certain good and that companies will always produce it infinitely, or overseas data that the excess of one product compensates for the lack of another.
For the student of consumer behavior theories, the utility of a product should now be represent by a vector: a measure with a beginning and an end, guid by the principles we mention.
What is consumer equilibrium?
Propos by Austrian psychologist Fritz Heider , the equilibrium theory states that consumers seek to maintain the perception of it is necessary to write down consistency in their relationships. When this idea is transferr to economic studies on supply and demand, the basis of consistency is replac by that of utility .
Within consumer theory, utility refers to the ability to satisfy a human ne. Knowing that goods and services are valu differently by each individual, scholars have creat a formula to measure consumer preferences:
Oh, so many letters!
MUx: It is the marginal utility deriv america email from a certain good, which we identify here by the letter x . It represents the additional satisfaction that a consumer obtains by having one more unit of it.