Consumer concept is the study of how people decide what to spend their money on given their options and their financial restrictions. Customer concept shows how individuals make options given their income and the prices of products or services and helps us to understand how individuals’ preferences and earnings impact the requirement bend.
In order to explain the consumer’s problem we need to specify his:
1. Customer Preferences
2. Customer Constraints
The consumer’s options and restrictions determine his choice; i.e., the intake package that increases the consumer’s well being on the set of possible intake package.
The actual basis of requirement, therefore, is a kind of how customers act. The personal consumer has a set of options and principles whose dedication is outside the world of financial aspects. They are no doubt reliant upon lifestyle, education, and personal preferences, among a variety of other factors. The way of measuring these principles in this design for a particular excellent is with regards to the real chance price to the customer who buys and takes in the excellent.
If an personal buys a particular excellent, then the chance price of that purchase is the forgone products the customer could have bought instead. We develop one in which we map or graphically obtain consumer options. These are calculated with regards to the amount of fulfillment the customer acquires from taking various mixtures or packages of products. The consumer’s purpose is to choose the package of products which provides the greatest degree of fulfillment as they the customer determine it. But customers are very much restricted in their options.