Consumer behaviour Flashcards
What is rationality?
Decisions which economists make when they want to maximise their utility or gains
Most economic theories are created under the assumption that all those involved are thinking?
Rationally
Utility is?
The way economists define satisfaction or well-being
Order preferences is?
The theory where people rank preferences according to their desired utility
Informed decision-making is when?
It is assumed that people have accurate information to choose the best decision
The law of diminishing marginal utility is?
The idea that with every additional good or service, the utility becomes less
What happens when consumers try to maximise utility?
They take into account rational thinking along with their budget in doing so.
The losses made when you choose a specific alternative are?
Opportunity costs
A relative cost is?
The comparison of one commodity to another by ratio
When people choose options that will benefit them in the present rather than long term it is a?
Present bias
When someone buys something because they normally do even if it does not bring them utility is called?
Habit
Influences the alter purchase choices in certain regions in the world, making the marketing scheme or product to differ from somewhere else in the world is known as?
Culture influences
Marketing is?
The action or business of promoting and selling products or services, including market research and advertising.
The promotion and exposure of certain products in order to entice people to buy them is known as?
Advertising
The way items are portrayed in adverts to make them seem better and more positive than they actually are is known as?
Framing
