Question

what is Theory of the Customer about?

how wouls you distinguish between Utility and Marjinal Unity of a good?

what is Forcasting Demand? Give an example

Answer 1

1. The Customer Theory is a customer understanding which helps us to predict the total response to a given offer more accurately. In an era of big data, the monitoring of performance, reports, and statistics can be daunting. Our understanding of customer theory focuses solely on the information that teaches marketers about the customer decision-making process, enabling us to predict buyer behavior more accurately without being embroidered by superfluous data. The theories and models on customer service are all about attracting customers and keeping them with your company. In this case the key thing to strive for is loyalty. Although it's called customer theory, it's more practical than most theories you'll find because it's practical this theory. Without an intimate understanding of the values of customer service, the company can't survive. Nobody in the contemporary world wants to do business with a company that does not seem to have any regard for its customers, their concerns or their comfort.

2.The main difference between total and marginal utility is that total utility refers to the consumer's overall satisfaction from purchasing different units of a product while the marginal utility refers to the additional value obtained from the consumption of the commodity's extra unit.

Total utility is the sum total of the usefulness derived from the consumption of all commodity units. For demonstrate, if 2 units of a service are used and the 1st unit satisfies 10 uses while the 2nd unit satisfies 9 uses, then the cumulative utility is 19 uses. Marginal utility refers to the additional value derived from a commodity's use of an additional item. To illustrate, if the 10th unit is 100 utility satisfaction while the 11th unit is 105 utility satisfaction, then the marginal utility derived from the 11th unit is 5 utility.

3. Demand forecasting is a mixture of two words; Demand is the first, and forecasting is another. Demand means the requirements external to a product or service. In general, forecasting involves predicting for a potential occurring occurrence in the present. It's a strategy for forecasting likely future demand for a product or services. It is based on an analysis of historical demand in the present consumer situation for that product or service. Demand forecasting should be done on a scientific basis and consideration should be given to facts and events related to the forecasting.