Theories of Consumer Choice

Theories of Consumer Choice explore how individuals make decisions about what to buy based on their preferences, needs, and budget. Key concepts include utility, which measures satisfaction from products, and the trade-offs consumers face when choosing between different goods. Theories like the Rational Choice Theory suggest consumers aim to maximize their utility within their financial constraints. Behavioral economics highlights that real-life choices can be influenced by emotions, biases, and social factors, sometimes leading to decisions that deviate from purely rational behavior. Ultimately, these theories help us understand the complexities of consumer behavior in the marketplace.