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Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior : Cakart team members provides here Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes and other Karnataka Class 12 Commerce Economics Concept related notes in pdf format. We provides you direct link for downloading Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes in pdf format. Download Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes and read well.

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior : Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants. It is also concerned with the social and economic impacts that purchasing and consumption behavior has on both the individual consumer and on broader society. Consumer behavior blends elements from psychology, sociology, social anthropology, marketing and economics, especially behavioral economics. It examines how emotions, attitudes and preferences affect buying behavior. Characteristics of individual consumers such as demographics, personality lifestyles and behavioral variables such as usage rates, usage occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to understand people’s wants and consumption are all investigated in formal studies of consumer behavior. The study of consumer behavior also investigates the influences, on the consumer, from groups such as family, friends, sports, reference groups, and society in general.

Download here Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes In PDF Format

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior : A consumer is someone who makes demands in the market. If there is no consumer then there would be no producer. If we, as a consumer won’t make demand for a commodity in the market, the producer won’t produce it because it wont be sold.

To study consumer behaviour, we must know Three things.

1. Demand

2. Consumption

3. Consumer’s equilibrium (Various Utility concepts)

Demand is the willingness to buy a commodity at aparticular price and at a particular time. There are 3 components of demand.

1. willingness to buy the product

2. willingness to pay

3. At a particular time.( if I plan to buy something after 2 yrs, then its not demand. So. time is very importan

Goods and services need to be consumed in order to satisfy human wants. Consumption is registered the beginning as well as the end of all economic activities.

Definition/Meaning of Consumption: Consumption means the use of goods and services in satisfying human wants.

Kinds: a. Final b. Productive c. Quick or fast moving
d.slow

Importance of Consumption:

  • Importance to the Government
  • Importance to Businessman
  • Importance to Household
  • Importance to Society

Consumer’s equilibrium

Consumer equilibrium is a situation when a consumer derives maximum satisfaction from the given resources.

Aim of a consumer = Deriving Maximum satisfaction from limited resources by
making choice.
Aim of a producer = To maximise his profits

Consumer equilibrium for 1 commodity
Assumptions:
Consumer behaviour is rational.
Consumer behaviour is consistent.
There are two commodities in consideration.

Consumer will attain its equilibrium (maximum satisfaction) at the point, where marginal utility of a product divided by the marginal utility of a rupee, is equal to the price.

Consumer’s equilibrium = Marginal utility of a product /Marginal utility of a rupee = price

Consumer equilibrium for 2 commodities

Consumer will attain its equilibrium (maximum satisfaction) at the point, where marginal utility of a product 1 divided by the price of product 1, is equal to the marginal utility of a product 2 divided by the price of product 2.

Marginal utility of a product A/Price of A = Marginal utility of a product B/Price of B

Explanation-

  • The consumer equilibrium condition determines the quantity of goods 1 and 2 that the consumer demands,
  • The price of good 1 is Rs 2 per unit and the price of good 2 is Rs 1 per unit.
  • Also that the consumer has a budget of Rs 5.
  • The marginal utility ( MU) that the consumer receives from consuming 1 to 4 units of goods 1 and 2 can be seen in the following table –

  • If we look at column 3 and column 6 we will see that
  • the consumer will buy 2 units of good 1 and 1 unit of good 2.

At this point, Marginal Utility/Price of good 1 = Marginal Utility/Price of good 2

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior : This economics course is pretty much the cornerstone to learn about the concepts of “Consumer Behavior“. The course engulfs all the basic concepts of

  • Evolution of Economic Thoughts
  • Theory of Utility
  • Law of Diminishing Marginal Utility
  • Concept of Demand
  • Individual & Market Demand Schedule
  • Exceptions to the Law of Demand
  • Elasticity of Demand
  • Income & Cross Elasticity and Consumer Surplus
  • Indifference Analysis & Budget Analysis

The entire course is divided into 12 modules which comprises of 23 video lectures and 7 pdfs. Don’t forget to take the Assessment Test at the end of the course and shoot me with any questions and doubts you will have in mind.

The course is based on practical real life scenarios & mathematics based solutions for you to understand the concepts better.

Anyone who wants to learn economics, this course is your first stepping stone. We start this course from very scratch and gradually build your concepts. So if you are a complete new learner with no prior knowledge on economics, don’t worry, this course can help you immensely. And, if you are an existing economics student in your graduation level, this course will definitely bring better clarity to your concepts. By the end of the course you will get detailed information and knowledge on the following areas:

  • Clear understanding of the basics of economics and its evolution
  • What are the different elements and how they can determine a rational consumer’s buying decision
  • Also you will develop substantial knowledge & clear understanding about some important concepts like:

Theory of Utility
Diminishing Marginal Utility
Concept of Demand and Demand Function
Individual & Market Demand Schedule
Elasticity of Demand
Consumer Surplus
Normal Goods & Inferior Goods
Indifference Analysis
& Budget Analysis

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior : The study of consumer behavior is concerned with all aspects of purchasing behavior – from pre-purchase activities through to post-purchase consumption and evaluation activities. It is also concerned with all persons involved, either directly or indirectly, in purchasing decisions and consumption activities including brand-influences and opinion leaders. Research has shown that consumer behavior is difficult to predict, even for experts in the field. However, new research methods such as ethnography and consumer neuroscience are shedding new light on how consumers make decisions.

Customer relationship management (CRM) databases have become an asset for the analysis of customer behavior. The voluminous data produced by these databases enables detailed examination of behavioral factors that contribute to customer re-purchase intentions, consumer retention, loyalty and other behavioral intentions such as the willingness to provide positive referrals, become brand advocates or engage in customer citizenship activities. Databases also assist in market segmentation, especially behavioral segmentation such as developing loyalty segments, which can be used to develop tightly targeted, customized marketing strategies on a one-to-one basis. (Also see relationship marketing)

The purchase decision and its context

Understanding purchasing and consumption behavior is a key challenge for marketers. Consumer behavior, in its broadest sense, is concerned with understanding both how purchase decisions are made and how products or services are consumed or experienced.

Some purchase decisions involve long, detailed processes that include extensive information search to select between competing alternatives. Other purchase decisions, such as impulse buys, are made almost instantaneously with little or no investment of time or effort in information search.

Some purchase decisions are made by groups (such as families, households or businesses) while others are made by individuals. When a purchase decision is made by a small group, such as a household, different members of the group may become involved at different stages of the decision process and may perform different roles. For example, one person may suggest the purchase category, another may search for product-related information while yet another may physically go to the store, buy the product and transport it home. It is customary to think about the types of decision roles; such as:

In a family unit, the adult female often makes brand choices on behalf of the entire household, while children can be important influencers

The Initiator
the person who proposes a brand (or product) for consideration (something in return);
The Influence
someone who recommends a given brand;
The Decider
the person who makes the ultimate purchase decision;
The Purchaser
the one who orders or physically buys it;
The User
the person who uses or consumes the product.

For most purchase decisions, each of the decision roles must be performed, but not always by the same individual. For example, in the case of family making a decision about a dining-out venue, the father or mother may initiate the process by intimating that he/she is too tired to cook, the children are important influences in the overall purchase decision, but both parents may act as joint deciders performing a gate-keeping role by vetoing unacceptable alternatives and encouraging more acceptable alternatives. The importance of children as influences in a wide range of purchase contexts should never be underestimated and the phenomenon is known as pester power.

Karnataka Class 12 Commerce Economics Concept Of Consumer Behavior Complete Notes

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