Republic of the Philippines

BATANGAS STATE UNIVERSITY

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
Gov. Pablo Borbon Main Campus I
Rizal Avenue, Batangas City

GRADUATE SCHOOL DEPARTMENT

Garcia, Jocelyn A.
MBA
SR Code: 16-59300
Reaction Paper
Consumer Behavior
Consumer behavior was primarily about changes in taste of preference of consumer due to greater
consumption of particular goods overtime. It explains why consumer satisfaction lessens in every
consumption of a larger quantity of goods. Income becomes a factor in consumer behavior of an
individual. Higher income of a consumer tends to result to larger spending while lower income of a
consumer results to lower spending and choosing any other substitutes for the chosen goods.
I was assigned in reporting indifference curve, marginal rate of substitution and budget line. In
actual scenario, theories and explanation about mentioned topic was generally happens in reality. It was
neither based on assumption or prediction of an economist. After studying those given topic and
consumer behavior as a whole, I have learned that they were an explanation and studies behind every
action and behavior of the consumer in spending and satisfaction about consumption of goods in the
market. It varies depending on different variables in economics. It was a privilege learning this aspect of
economics specially for us, business students because it was crucial for our future role as a manager of a
company or starting up a business. On the other hand, I was also amazed by the simple vendor in the
public market because in spite of insufficient knowledge about economics particularly consumer behavior
they tend to manage their sales and avoid loss in terms of changing behavior of the consumer. For some
reasons, they have strategies in overcoming loss in their capital like lowering prices of fruits and
vegetables if this good was not in demand and have a large supply.
I have also agreed that prices of goods and income of consumer were a greater factors that affect
consumer behavior. By these two variables, consumer’s demand and spending on certain goods increases
or decreases. All in all, learning consumer behavior was vital for all individuals specially for us, who
aims to become successful in regards to business matters in corporate world or putting up a business.