consumer satisfaction

WILLINGNESS TO BUY AND CONSUMER SATISFACTION:

. The satisfaction of people derives from their consumption activities

ASSUMPTIONS:

. Tastes and preferences are fixed and given, and play a large role in decision making

. People allocate their income to maximize their satisfaction

CARDINAL UTILITY:

Cardinal utility approach is measurable and the customer can express his satisfaction in cardinal numbers such as 1,2,3…

ORDINAL UTILITY:

Ordinal utility states that the satisfaction which a consumer derives from the consumption of product or service cannot be measured numerically.