ECONOMICS

Imagine you are in a mall looking to purchase a shirt for your birthday. It would be practically impossible to research each brand of apparel and compare their information, right? Comparing clothes between just two brands is tiring enough, especially when you are trying to compare hundreds of them. You just don't have the time. Instead, you'd probably associate 'soft' with cotton, find a  shirt that says '100% cotton' and purchase it as soon as possible. You found something that met the criteria for 'soft' in your mind, selected it and moved along without even knowing whether the commodity you purchased was even the best choice or not.  All consumers present in the market are on an information overload. We are constantly subjected to advertisements on phones, radios, televisions and all sorts of electronic devices. We are always being told what to buy, when to buy, what's on sale, current fashion trends, stock prices etc. So whenever it comes to take...

Leo and Cristiano are two friends, they are both football lovers and so they decided to buy new football boots for themselves. Leo buys his boots from Adidas while Cristiano buys his boots from NIKE. Why did they chose two different brands? Why do consumers prefer different goods and services? The answer to these questions would be 'preferences'. Preference was the driving factor that made these two consumers choose one brand over the other. In the contemporary world people often select one good  over the other based on certain preferences.  Consumer preference can be defined as a set of assumptions that focuses on consumer choices that ultimately result in satisfaction. The entire process of consumer preference results in an optimal choice.    WHY PREFER ONE OVER THE OTHER? In the earlier example we understood that preference was the factor that made Leo and Cristiano chose one good over the other but do you think...