Theory of consumer behavior

The theory of consumer behavior is designedtake into account several restrictions that do not allow people to buy everything they want. One of the means of limitation is fiscal restraint. Each person's income is limited to some extent. In this case, the theory of consumer behavior is expressed in the restriction of the acquisition in view of the limited budget. Another means of deterrence is the cost of the desired benefits. All the benefits presented in the market are endowed with a certain price. The price of goods is formed from the costs of their production, arising from the need to use rare and expensive resources in production.

Mechanisms and the theory of consumer behavior are based on certain provisions.

The first of these is multiplicity. The needs of the whole society and of man in particular are quite large and varied. In this regard, they provoke the emergence of a variety of benefits that can contribute to meeting the needs. The theory of consumer behavior, referring to the issue of choice, suggests the existence of several possible options in a certain period of time. In other words, a person always has something to choose from.

The next position on which the theory is basedconsumer behavior, is sovereignty. He expresses himself in the ability of a person to make his own (individual) decision to purchase one or another good without having a decisive influence on the producer. Together with this, the market mechanism, summing up individual solutions of a large number of consumers, brings them together to the manufacturer. When people choose certain goods and acquire them when paying a certain price, the producer of these goods receives not only profit, but also the right to the subsequent development of production. Consumer sovereignty provides for the ability of consumers to influence producers. In other words, it is a person's power over the market, expressed in the ability to determine in what quantity and what kind of goods must be produced.

An important factor contributing toformation of consumer choice, is the system of preferences. The same (same) benefits can bring different benefits to different people. Each consumer has its own set of values. There is no objective unified scale that makes it possible to determine the utility of one or another good. However, each person has his own subjective scale of preferences. Rational in this case is considered the behavior of a person, in which he, knowing about the necessary set of benefits, is able to compare different sets, choosing the optimal one for himself.

Quantitative (cardinal) theoryconsumer behavior in the process of solving the question posed suggests the probability of measurability of utility. In this case, it is assumed that when you consume the good, you can measure its useful value. Thus, measurements can help determine the difference between goods.

The fundamental position of this theoryconsumer behavior is the requirement to decrease marginal utility. Thus, we can formulate the equilibrium rule. Consumer equilibrium is achieved in a situation in which a person with a limited budget is not able to increase the utility of the total by spending less money to get one good and more - to purchase another. A rational person will strive to acquire that which will bring the greatest benefit.