Consumer Theory

The video tutorial discusses the importance of understanding consumers in marketing, introducing the concept of consumer theory. Consumer theory examines how buyers spend money based on preferences and budget constraints, forming the foundation of behavioral economics. Although it assumes rational consumer behavior, this theory aids marketers in comprehending consumer decision-making processes.

What is the primary focus of consumer theory?

How do consumers typically make purchasing decisions according to consumer theory?

In what area of study is consumer theory a foundational concept?

What assumption does consumer theory make about consumers?

Why is understanding consumer behavior important for marketers?