- MemberJanuary 18, 2022 at 8:15 am
Government intervene in the market to address inequality and inefficiency. It can be through many forms; regulations and policies, taxes, subsidies, and price controls. These measures are taken to promote competition, increase economic efficiency and thus promote an equitable or fairer distribution of income throughout the nation. Also, the government imposes policies and regulations to protect people and the environment.
For example, Festive Seasons Price Control Scheme Enforcement was implemented in Malaysia since 2000 under the Price Control and Anti-Profiteering Act 2011 (formerly Price Control Act 1946). Under this scheme, the government controls the price of essential goods by implementing a price ceiling to ensure goods are sold at the price determined and are readily available for consumers to purchase, and in a way protecting consumers against profiteering.
Consumer behavior is the study of how consumers make the decision on what to buy or opt for services. This is majorly impacted by the maximization of utility, which is the satisfaction level the consumer gets when purchasing a product or service, at the most affordable rates to the consumer. Of course, you can’t satisfy everyone, hence these studies of consumer behavior can help businesses plan and strategize their business, as they encompass consumers’ emotional, mental, and behavioral responses and how these responses influence consumers to make the purchase. Businesses can study the demands of consumers in the market, and use appropriate marketing skills and strategies to present their products to be the most compelling to consumers – attractive packaging, best plans that suit everyone (targeting different demographics/audience), value-added services.