The Theory of Consumer Behavior

The Theory of Consumer Behavior explains how people make decisions about what to buy based on their preferences, budget, and the prices of goods and services. It considers how consumers choose combinations of products that maximize their satisfaction or utility within their financial limits. Factors like personal tastes, income, and the prices of items influence these choices. Essentially, it helps us understand why consumers buy certain products, how they prioritize their spending, and how changes in prices or their income can alter their purchasing habits.