Sunday, January 25, 2015

The theory of consumer behavior (10)

The study of consumer behaviour in conventional economics can be traced back to the work of Jeremy Bentham’s utility theory.
Utility theory according to Bentham.
This theory is based on assumption that:
ü WHAT GIVES PLEASURE IS GOOD;
ü AND WHAT CAUSES PAIN IS BAD.
Thus good and bad or right or wrong were to be determined by the measurable criteria of:
ü PLEASURE;
ü AND PAIN.
(Chapra, 1992: 25)
Utility theory has been considered as the cornerstone of economic for hundred years.
The desire to get pleasure and averting bad with the influence of hedonism has further spread this hypothesis in the western world.

to be continued...

Source: Islamic Science University of Malaysia

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