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CONSUMER’S BEHAVIOUR:

UTILITY ANALYSIS
1. Marginal Utility
2. Total Utility
The relationship between MU and TU
Units of a good Marginal Utility (MU)
consumed Total Utility (TU)

} }
I 6 6
II 4 Positive 10 Increasing
III 2 12
IV 0 } Zero 12 } Maximum
V
VI }
-2
-4
Negative 10
6 } Decreasing

Law of Diminishing Marginal Utility

MU and Price
Cardinal (Marshall) and Ordinal (Hicks & Allen) E Px (MUx)
Px
Consumer’s Equilibrium: One commodity model
MUx
0 Qx
Quantity
1.Techniques of Demand estimation done by Marico.
2.Techniques of Inventory management of Amul.
3.Competitive analysis of Pepsi to increase its market presence.
4.Competitive analysis of Videocon to increase its market presence.
5.Research and Development strategy adopted by Sony to boost demand
in the market.
6.New product policy of Parachute coconut hair oil and its affect on sales
and demand.
7.How prices of related goods affected the demand of Colgate toothpaste.
8.How prices of related goods affected the demand of 21 inch colour
television of LG.
9.How discovery of polythene bags and plastic bottles has affected the
sales of companies-at least two companies case study to be prepared
by each group.
Every group is expected to do market research and prepare the report.
Economies of Scale
Economies of Scale

Internal Economies External Economies

Financial Marketing Risk and


Technical Inventory Managerial
Economies economies Survival
Economies Economies Economies
Economies

(i) Economies of Superior Techniques


(ii) Economies of Linked Process Economic of
Economies of
(iii) Economies of use of By-Products information
localization
(iv) Economies of Specialization
(v) Economies of Increased Dimensions

Economies of Disintegration