Which term refers to the process through which individuals or households make decisions about the acquisition, consumption, and disposal of goods and services?

The Correct answer is Consumer Behavior.

Key Points

• Consumer Behavior refers to the process through which individuals or households make decisions about the acquisition, consumption, and disposal of goods and services.
• It involves understanding the needs and desires of consumers.
• Factors influencing Consumer Behavior include cultural, social, personal, and psychological factors.
• Marketers study Consumer Behavior to create effective marketing strategies and enhance customer satisfaction.
• It is a critical aspect of marketing management and helps in predicting how consumers will respond to marketing campaigns.

 Additional Information

• Market Segmentation
  • Market Segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.
  • The segments created are composed of consumers who will respond similarly to marketing strategies.
  • Common bases for segmenting markets include demographic, geographic, psychographic, and behavioral factors.
• Demand
  • Demand refers to the willingness and ability of consumers to purchase a good or service at different prices in a given period.
  • The Law of Demand states that, all else being equal, as the price of a product increases, the quantity demanded decreases, and vice versa.
• Supply
  • Supply refers to the total amount of a specific good or service that is available to consumers.
  • The Law of Supply states that, all else being equal, an increase in price results in an increase in quantity supplied.