Answer to Question #230420 in Microeconomics for Oldman

Question

Why is an understanding of consumer behavior important in decision making process by economic agents?

Answer 1

Consumer behavior study is important for economic agents because it helps them understand the consumer's expectation. This helps to fill in the market gap thrugh understand what makes a consumer to buy a product hence determining the products that are needed and the products that are obsolete. In a nutshell, economics agents can determine the likes and dislikes of consumers and design based on their marketing efforts and findings.