o List two perspectives from which consumer behavior can be examined and define consumer behavior from both perspectives.
o What role does competition play in determining the way in which consumers are treated in the marketplace?
o List three examples of products you have consumed recently that provide high utilitarian value. Likewise, list three examples of items that provided high hedonic value. Think of at least one product or brand that you would associate with both high utilitarian and hedonic value.
Full Answer Section
Definitions of consumer behavior from both perspectives:
- Individual perspective: Consumer behavior is the process by which individuals make decisions about the acquisition, consumption, and disposition of goods and services.
- Social perspective: Consumer behavior is the study of how individuals and groups select, purchase, use, and dispose of goods and services to satisfy their needs and wants.
Role of competition in determining the way in which consumers are treated in the marketplace:
Competition plays a significant role in determining the way in which consumers are treated in the marketplace. In a competitive market, businesses are constantly striving to attract and retain customers. This leads to lower prices, better quality products and services, and more innovative marketing campaigns.
Here are some specific examples of how competition influences the way consumers are treated in the marketplace:
- Lower prices: When businesses compete with each other, they are forced to offer lower prices to attract customers. This benefits consumers by giving them more choices and allowing them to save money.
- Better quality products and services: Businesses are also constantly innovating and improving their products and services in order to compete with each other. This benefits consumers by giving them access to better quality products and services.
- More innovative marketing campaigns: Businesses use marketing campaigns to create awareness of their products and services and to persuade consumers to buy them. In a competitive market, businesses are forced to be more creative and innovative with their marketing campaigns in order to stand out from the competition. This benefits consumers by providing them with more information and choices.
Overall, competition plays a positive role in the marketplace by leading to lower prices, better quality products and services, and more innovative marketing campaigns. This benefits consumers by giving them more choices and allowing them to save money.
Here is a specific example of how competition has led to better treatment of consumers in the marketplace:
In the past, airlines often charged high prices for checked bags. However, in recent years, many airlines have begun to offer free checked bags in order to compete with each other. This has benefited consumers by saving them money on checked bag fees.
Another example is the rise of online shopping. Online shopping has made it easier for consumers to compare prices and find the best deals. This has also led to lower prices for consumers, as businesses are forced to compete with each other online.
Overall, competition is a good thing for consumers. It leads to lower prices, better quality products and services, and more innovative marketing campaigns.