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ordinal approach to the theory of consumer behaviour is consumer's ability to rank his preference for various combination of products. It uses Indifference curve to analyse these preferences.
Wiki User
∙ 12y ago
Wiki User
∙ 13y agoLaw of diminishing.
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Which is a dimension or assumption of the marginal-utility theory of consumer behavior?
The consumer has a small income.
What is the role theory and how does it help us to understand consumer behavior?
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What theory has focused a major part of its approach to helping raise the tolerance for frustrations and who developed this approach?
Rational Emotive Behavior Therapy - Abert Ellis
What is the similarity between cardinal utility theory and ordinal utility theory?
When discussing cardinal vs. ordinal, it is helpful to look at what the words mean. The distinguishing factor here is between cardinal and ordinal numbers. Cardinal numbers are 1, 2, 3; ordinal numbers, 1st, 2nd, 3rd. Some crucial differences follow from that. Whereas mathematical operations can be performed on cardinal numbers, they cannot be performed on ordinal numbers. Now, when talking about cardinal utility, it is an attempt to ''measure the utility of various alternatives. When talking about ordinal utility, it is the ''ranking of alternatives.'''' Cardinal utility is, however, an erroneous concept. It is impossible to "measure" utility. People can only say "I prefer A to B", but cannot meaningfully say "I prefer A 2.5 times more than B" or something to that effect. Furthermore, comparisons of utility between different individuals are impossible and meaningless, as well as between the same individual at different points in time (as individuals can and do change their preferences -- that is, ordinal value-scale rankings). Because value is subjective, we cannot measure it and cannot compare between two different people, or even between the same person at different times. To clarify, ordinal utility culminates in value-scales: 1st: A2nd: B3rd: C whereas cardinal utility is the erroneous attempt at measurement: 10utils -- A7utils -- B3utils -- COmar Tawfik.
Utilities of index number in economics?
what is mean by statistical approach and economical approach in the theory of index numbers?
Define cardinal approach?
The cardinal approach in a careful approach that states that utility is measurable. The ordinal approach disagrees with this theory.
Define ordinal utility?
Ordinal utility is a concept in economics that refers to the ranking of preferences among different alternative choices based on satisfaction or utility derived by an individual. It does not assign a specific numerical value to the level of satisfaction, but simply ranks the different choices in order of preference. This approach helps in understanding consumer behavior and decision-making without needing to quantify utility levels.
What are the similarities between cardinal and ordinal approach?
they both obey the diminishing returns theory
Which is a dimension or assumption of the marginal-utility theory of consumer behavior?
The consumer has a small income.
What are the 4 approaches in the development of moral behavior?
There are four approaches in the development of moral behavior, the psychoanalytic approach, the social-group approach, the learning-theory approach, and the cognitive developmental approach.
What is the role theory and how does it help us to understand consumer behavior?
nvhvfhEFKCTR
What are the determinant of consumer behavior?
needs and motives, perceptions, attitudes, learning and self concept theory
What is the trait theory?
The trait approach to personality is also known as the dispositional theory. It is an approach to the study of human personality wherein it measures traits that are considered to be habitual patterns of behavior and emotion.
What are the three theories of low involvement consumer behavior include?
The three theories of low involvement consumer behavior are the Peripheral Route Theory, the ELM (Elaboration Likelihood Model), and the Heuristic-Systematic Model. These theories explain how consumers make decisions when they are not highly motivated to process information extensively.
What theory has focused a major part of its approach to helping raise the tolerance for frustration and who developed this approach?
Rational Emotive Behavior Therapy - Abert Ellis
What theory has focused a major part of its approach to help raise the tolerance for frustration and who developed this approach?
Rational Emotive Behavior Therapy - Abert Ellis
What theory has focused a major part of its approach to helping raise the tolerance for frustrations and who developed this approach?
Rational Emotive Behavior Therapy - Abert Ellis
