In the combination or mixture between the

In this
cardinal approach there are several assumptions, among others:

• Power or
use value added with parameter unit price or utility.

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• Consumers
are rational, in which they will meet the needs of their lives in accordance
with the limits of income ability.

• Consumers
will experience a decrease in utility when continuing to consume the product
(diminishing marginal utility).

• Consumers
have a fixed amount of income.

• The power
or value of money is constant or constant.

• Total
utility can be complementary (additive) or independent (independent).

• Products
consumed normally and their consumption periods close together.

With these
assumptions the cardinal approach is able to formulate a well demanded function
formulation. However, this approach has several weaknesses, including:


Effectiveness that is viewed only in terms of subjective makes the absence of
appropriate measuring instruments and accordingly.

• Have the
concept of constan marginal utility of money, which makes the assumption of the
value of money will decrease when the more money jumlang.

• The
concept of diminishing marginal utility is a very difficult problem in terms of
psychological and difficult to accept as an axiom.

2. Ordinal
value approach

In contrast
to a karinal approach that focuses on the study of the power or value of a
good, but in the ordinal pendampan the usefulness of not one hundred percent is
noteworthy enough to be known and the consumer is able to compile a high order
of the low usability obtained when consuming a product. The rationale of this
approach is that the more products consumed the greater the satisfaction the
consumer will get. In analyzing the satisfaction level of this approach using
the indefferent curve which shows the combination or mixture between the
consumption of two kinds of products that provide the same level of
satisfaction and budget line that shows the combination of different kinds of
goods that can be purchased by consumers with limited income.

 

Principles
in Consumer Behavior Analysis

After
discussing about the kinds of consumer behavior, then we will discuss about the
basic principles of what is in the analysis of consumer behavior.

1. Limited
income and scarcity

Limited
income and scarcity is a problem that consumers must address properly. Given
these two problems forces a consumer to think twice in determining the
expenditure or consumption to be done but still within the budget already
pre-set. Must be a balance in mengkoinsumsi a product. If you want to increase
consumption of a product or service goods must be accompanied by a reduction in
consumption of other products. (Read also: factoor causes of scarcity)

2. Consumers
are able to distinguish between cost and benefits

Costs and
benefits are two aspects that are always thought by a consumer in the
consumption. If in a condition where two of the same products provide the same
benefits or efficacy then the consumer will automatically see the price and
cheaper cheaper. On the other hand if in conditions where there are two
products that cost the same, then the consumer will see and pay attention to
the benefits and value of the use for the community and choose which has
greater benefits.

3.
Consistency of consumers in estimating the right benefits

Consistency
of a consumer is influenced by experience and people around. Consistency of the
consumer to a product will easily falter when there are products that have
better benefits at a cheap price or equivalent. With so consumers will be able
to provide an estimate of the product to be consumed. But it does not rule out
that consumer consistency will persist if the consumed product is qualified and
has a good use value.

4.
Distribution of products with each other.

Distribution
of a product with other products is a great way to meet all the needs and wants
of consumers who tek never finished. In addition, with the distribution of this
consumer will be easier to get satisfaction from various sides.

5. Consumers
are obedient to the law of diminishing additional applicable satisfaction.

In this law
applies about the increasing amount of goods consumed, the smaller the
satisfaction or benefits generated. This means that with the additional cost of
the consumer will stop consuming the goods.

 

TIME
AND RESEARCH METHOD

 

This study
was conducted during November 2017. This study uses the method of narrative
analysis Qualitative by using techniques with story telling form, where the
decomposition methods that obscure the boundaries of fiction, journalism and
academic reports. While the study techniques in use by narrowing and focus the
discussion. So in a report that contains about how the description of events,
based on certain themes or perspectives.

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