Artificial Intelligence And Consumer Behavior Relationship

consumers. What is economic laws qualitative or quantitative method to predict consumer behavior? Law of economic are qualitative in nature. They are not exactly stated in quantitative terms. They tell the direction of change which is expected rather than the amount of change. For example, according to the law of consumer demand, the quantity demanded varies inversely with price, We don't say that 10% rise in price will lead to 30% fall in the customers' quantity demand. What is economic merits of deduction method? This method is near to reality. It is less time consuming and less expensive. the use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis. The deductive method is highly abstract. It require a great deal of care to avoid bad logic or faulty economic reasoning. This method makes conclusions to predict consumer behavior, due to reliance on imperfect and correct assumptions. It involves the process of reasoning from particular facts to general principle on the basic of experimentations, observations and statistical methods. In this method, data is collected about a certain economic phenomenon. There are systematically arranged and the general conclusions are drawn from them. What are the advantages of inductive method to predict consumer behavior? It is based on facts as such the method is realistic. In order to test the economic principles, method makes statistical techniques. The inductive method is therefore more reliable, inductive method is dynamic. The changing economic phenomenon are analyzed and on the conclusions and solutions are drawn from them and this method also helps in future consumer behavioral investigations. However, inductive method has weaknesses to predict consumer behavior, such as below: It conclusions drawn from insufficient data, the generalizations obtained may be faulty. The collection of data itself is not easy task. The sources and methods employed in the collection of data differ from investigator to investigation. The result, therefore may differ even with the same problem and it is time-consuming and expensive to find data to predict consumer behavior changes. How apply this method to predict general social consumer sources of income and consumption pattern when economic environment factor changes consumer behaviors? It should also be stressed that micro analysis plays other roles. First, it may serve to some macro data (any labor force by production sector or by skill category). Second, it can be used to estimate of key consumer behavioral consumption functions. For example, price and income elasticities can be estimated using data available in a typical householder budget survey. Third, in the case of tax reforms involving changes in exemptions or deductions is a model useful to estimate changes in effective tax rates changes how to influence consumer behavioral changes in society. In conclusion, economists have proved macro and micro economic both methods have possible to be applied to predict consumer behavior when , how and why their consumption behavioral changing occurrence in order to manufacturers and product sellers or service providers can pre-make judgement to achieve the marketing strategies to avoid the number of client loss, due to marketing or economic environment changes to influence negative impact to consumer behavioral changes to influence the manufacturers' manufacturing products or the sellers' products or the service providers' service provision which number to be decreased.