WHAT DO THE CONSUMER ACTUALLY WANT?

The Theory of the Customer Choice enable us to understand what exactly the consumers wants. When an individual go to buy any product, then he is flooded with varieties of product of different brands, price, different features and many other preferences. But the consumer's choice for a particular product depends on many factors such as their wants, the price they are willing to pay for a particular product, their income level and so on. In this theory, the customer preferences can be represented with Indifference curves.

What is indifference curves?

An indifference curve represents the bundles of consumption of the consumers that makes them equally happy. In this curve, we compare the combination of two goods and find that the consumer is equally happy and satisfied. Each point on an indifference curve represents that the consumer is indifferent of the satisfaction or utility obtained by the two products.

Example- Let us say that a consumer is having chicken biryani and chicken fried rice. And the satisfaction that he gets are the different points say A,B,C. So if the consumption of biryani is reduced from point A to B, then consumption of chicken fired rice must be increased to make the consumer equally happy. And if the consumption of chicken biryani is reduced further, from point B to C, then the amount of fried rice has to be increased yet again to make the consumer equally happy and satisfied.