Analysis of Consumer Choice (Term Paper Sample)

Analysis of Consumer Choice
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Consumer choice is one of the most challenging concepts to understand in economics. The studies conducted, however, have failed to detail adequate data to analyze consumer behavior because consumer choices are affected by various mental processes. For this reason, further studies have gained popularity in understanding this concept. These studies have used psychological and neuroscience abilities to analyze consumer behavior and decision making. In regard, it has assisted in describing and explaining how consumers respond to encouragement from marketing strategies.
The article “Towards Understanding of Consumer Behavior” provides a brief analysis of the use of marginal utility and Neuromarketing concerning consumer choice on goods. In economics, marginal utility is a critical parameter that affects consumer satisfaction and decision making. It is through a marginal utility that economists measure the consumers’ satisfaction level (Alvino et al., 2018). The article, however, illustrates Neuromarketing as an excellent tool to analyze consumer’s behavior. Although the tangible result has shown inadequate evidence on how Neuromarketing affects decision making and consumer’s choices, the article provides relevant literature reviews on the contribution of Neuromarketing on marginal utility.
Moreover, the article describes the consumer’s demand and utility to affect the consumer’s choice. The topic has broadly been discussed, and the primary identified purpose remains that it affects the consumer’s request. And according to scholars, these factors include the buyer’s income, price of the product, and cost of substitute products. Therefore, understanding the consumer’s decisions bases on an individual’s behavior. The facts imply that individuals tend to spend their income in the market to attain the highest possible satisfaction regardless of the market prices. As such, this satisfaction consumers achieve corresponds to the higher consumption of the goods hence affecting the choice of commodities in the market, assuming most of the consumer’s decisions are affected by the price of the product.
The marginal utility affects the consumer’s choice in the market. The concept of marginal utility answers on how consumer’s utility increases if consumers purchase more, and what happens when consumers buy an extra unit of the same good (Alvino et al., 2018). As such, marginal utility translates to the change that is associated with small change experienced when the quantity is constant. In this case, the article illustrates that if the marginal utility of the product is higher, the customers buy an extra unit of the commodity and vice versa. In this way, it affects the behavior of the consumers significantly. The article finally concludes that marginal utility and consumer’s demand and utility concerns impact consumer behavior, especially in predicting consumer’s choices and satisfaction as well as the cognitive and affective factors.
Further, from the course chapter, the model of utility is used in maximizing behavior. The economists illustrate the concept of utility as an elusive concept. It cannot be measured to determine the quantity. Therefore, the economist assumes that consumer always makes decisions and choices to meet the maximum utility for a given income. The concept involves the law of diminishing to describe how consumer utilizes its profits to achieve satisfaction. However, basin the idea that consumer is rational and trying to acquire more value for their money. Besides, the chapter illustrates that utility is a conceptual measure of satisfaction. The model gives an assumption on the response