What is the marginal analysis?
The limit analysis is a process that seeks to identify the relationship between other or marginal benefits obtained from engaging in specific activities and additional costs associated with this activity. The aim of this type of analysis is to get an idea of the overall satisfaction that can be derived from efforts, and at the same time consider primary and auxiliary costs associated with this particular effort. This makes it much easier for consumers to compare different purchasing options and go with the greatest satisfaction and is still considered the value of costs.
Consumers tend to use marginal analysis, of course, when choosing between two or more similar products. This is done by identifying the primary benefits derived from each product and then by determining whether there are any other aspects of individual products that would provide another advantage or incentive. For exampleTit clothing, and find out that the cost of each product is similar. While both products meet this primary need and are considered reasonable in terms of costs, the consumer often goes with a product that provides the most sought -after clothing fragrance, secondary or marginal benefits that increase the suitability of this particular brand of detergent.
The same marginal analysis process is used when the consumer chooses between two restaurants. While both restaurants provide similar Entéé at similar prices, one restaurant has a reputation for serving larger parts. A consumer who does not mind eating residues can consider most of the added or marginal advantage that can be obtained with small or no other costs. As a result of this output marginal analysis, the consumer has part of entrée in the restaurant and takes the rest home to eat that evening or the next day.
by the key to the marginal analysis processThere is an understanding and correct evaluation of changes in variables that could affect the outcome of the decision -making process. For example, the detergent that has previously been preferred may be rejected next time because the consumer is tired of the smell. Similarly, dinner can choose another restaurant while re -meal because of the fact that the second restaurant offers a wider range of attachments with the required entrée. Shifts in the taste of consumer or changes in prices are variables that can affect what the primary and secondary benefits the consumer identifies with the possibility of purchase and change the consumer's final decision.