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Consumers play an important role in determining the demand for a firm'sproducts. They are quality conscious and price sensitive. The success of a product is dependent on the consumers' acceptance of the product.Price sensitive customers like to buy products in small quantities ataffordable prices. For example, Motorola had initially launched sevenmodels of cellular phones at high prices but none of them weresuccessful. On the other hand, Nokia launched a simple cellphone at anaffordable price, which captured the market. Therefore, firms must tryto offer products that are of high quality, at affordable prices. Consumerbehavior is an important determinant of the type of product a firmshould produce. Before launching a product a firm has to take intoconsideration its target customers tastes and preferences. For example,when Dabur Foods launched Real Orange Juice, consumers rejected itbecause it tasted bitter. Research revealed that Indian consumerswanted juices to be sweeter. Dabur then modified Real's taste bysweetening the orange juice.
Consumer behavior assumes that every individual tries to maximize hissatisfaction by consuming products and service with the limited incomeavailable to him at a particular time. This limited income can also bereferred to as the budget constraint.
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Relationship between bond price and yield?
what is relationship between bond price and yield?
Why is consumer behaiviour neccessarry in producing buying and selling explain?
Consumer behavior is necessary in producing buying and selling in order to give you direction. The consumer behavior will guide you as to how much to produce, how long it will take for the consumer to make a purchase and what kind of price range the consumer is willing to pay.
What is the current trend in consumer buying behavior?
The current trend of the consumer buying behavior differs from one commodity to another. Some of the factors that dictate these terms includes the quality, the price and the demand.
What is the Relationship between price waterhouse cooper and TD waterhouse?
no relationship between td waterhouse and price waterhouse
What is the difference between customer behavior and consumer behavior?
what is difference between customer behaviour and consumer behaviour? The customer has to follow the terms of doing business with the Bank while the consumer can demand what he wants either from the existing pool of products or from an access to somebody's pool at a price that the bank chooses. Since the later pays for his demand to be met, he would be exacting in nature. The customer can also demand better service but within the agreed boundaries and any new service he seeks, carries additional price. When such demand is made he would turn out to be another consumer. Many banks devised new products based on such demands either by a consumer or customer-turned-consumer.
What is the agreement between the producer and consumer on a price called?
market
The agreement between the producer and consumer on the price is called the?
Market
What is the relationship between discounting and compounding?
The only relationship between these two things is that it gives a consumer more product for less money. Discounting is taking an amount of money off a product and compounding is giving more than 1 product at the same price as 1.
Why does a Demand curve for a normal good downward sloping?
I. An increase in the price of the good induces consumers to purchase substitute products. . II. An increase in the price of the good reduces consumer' purchasing power. III. Law of Demand- Inverse relationship between price and quantity
What is the relationship between marginal utility and demand?
There is a close relationship between the marginal utility and price of a commodity.The additional satisfaction from the consumption of an additional unit of the commodity is called marginal utilty. Price means the value of the goods expressed in the terms of money.Price of all units of he same goods of consumption are more or less identical.It means that the consumer pays the same price for all the units of the same goods of consumption. But marginal utility of the goods of consumption start diminishing as the consumer increase the units of consumption of the commodity.Therefore the consumer will like to pay that price for the commodity,which is equal to the marginal utility he gets from the commodity.If the price of the commodity are higher than the marginal utility he derives from the commodity he will not like to purchase the commodity. In this way there is a clod\se relation between the marginal utility and the price of the commodity.
What is the equilibrium price of a product?
The relationship between price asked and quatity supplied.
Is their inverse relationship between quantity and price?
Yes.
