The Ordinal Theory: Factors Affecting Consumer Behavior

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Definition of Consumer Behavior Consumer behavior is a process whereby a person doing the activity search, select, purchase, and use of products and services desired, in order to obtain the satisfaction of the needs of these consumers. Factors Affecting Consumer Behavior 3 Factors affecting consumer behavior, according to James F. Engel - Rodger D. Blackwell - Paul W. Miniard in Saladin, namely: Environmental influence: family, culture, social class and situation Differences and Influence Individuals: Knowledge, attitudes, lifestyle, personalities, demographics, motivation and engagement Psychological processes: learning, information processing, attitude and behavior change 2 Factors affecting consumer behavior, according…show more content…
Indifference curve (indiference Curve) According to the theory Ordinal, usability can not be calculated but can only be compared, as we assess a person's beauty or cleverness. To illustrate his point, Ordinal Theory using indifference curves (indifference curve). The indifference curve is a curve showing various combinations of consumption of two kinds of goods that gives the same level of satisfaction for the consumer. A set of indifference curves or indifference curve (called an indifference map or indifference map), faced by just a consumer. The farther the indifference curve from the origin point, the steeper rate of kepuasanya. Indifference curve decreases from left to right bottom (downward sloping), and convex to the origin point (convex to the origin) or their scarcity. Indifference curves do not intersect that transitivity assumptions are met. Curve Line Budget (Budget Line…show more content…
Kinds of commodities, certain commodities in the production process also determines the large-small capital employed. The availability of credit will determine the success of a business The influence of the use of factors of production can be expressed in the following three alternatives: Decreasing returns to scale means that the proportion of additional factors of production exceeds the proportion of the incremental production Constant returns to scale means that the addition of factors of production will be proportional to the additional production obtained Increasing returns to scale means that the proportion of additional factors of production will result in greater production Various Kinds of Production Theory: Theory of Production with One Variable Input Theory of Production with Two Variable Inputs Theory Cost (Cost)

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