Micro Term Paper Example | Topics and Well Written Essays - 1000 words

Micro - Term Paper Example Yet, in the economic cycle consumer is inevitable to business’s working and survival. As any produced good or service basically relies on consumer’s demand, who consumes it eventually. Thus, consumer’s demand, choice, preferences and decision making are significant aspects of micro economic system as they shed light on how any consumer chooses to exert his influence on any economic activity. Similarly, consumer is faced with the option of choosing from among the diverse products to meet his needs in most efficient way and likewise, utilizing his asset/cash in a prudent manner. Now how a consumer chooses and spends his earning to invest in the capital of the company is a comprehensive and diligent process, which mainly focuses on how two parties (business owner and consumer) involved take business and spending decisions. The main factors which impact the purchase inclination and decision of a consumer are price of the good or services, quality, reliability, durability and feasibility. However, there are many other factors as well, which influence the preferences of the consumer as well like fashion, marketing, government policies, and social or religious preferences. Yet, the core idea to learn about marketing strategy relies in the understanding of consumer decision making (when and how he decides to pay for goods or services). The term which describes how a consumer makes his decision t earn maximum advantage from the purchase any god or services is known as utility. This utility enables the consumer to spend more than usual on the goods/services, which benefit him in more than usual manner. However, not all the consumers can benefit any product/services in a similar way. Thus, diverse level of utility are associated with different types of consumers and this diverse nature of utility creates distinctiveness in the demand of goods/services too. However, this consumer inclination or decision making is received in the form of raw