What are the merits and demerits of consumer preference?

Answer 1

Consumer preference plays a crucial role in shaping market dynamics, as it drives demand and influences product development. On the merits side, it empowers consumers by allowing them to choose products that best meet their needs, fostering competition and innovation among businesses. However, a potential demerit is that it can lead to market volatility, as rapidly changing preferences may cause instability for companies and disrupt supply chains. Additionally, a narrow focus on consumer preference can sometimes overshadow other important factors, such as sustainability and ethical considerations.