Consumer Tastes

Definition

Consumer tastes refer to the preferences and desires of individuals when it comes to goods and services. It reflects what consumers find appealing or desirable in terms of quality, style, features, and other factors.

Analogy

Think of consumer tastes as a playlist on a music streaming platform. Just like how you choose songs that match your mood or personal taste, consumers select products based on their preferences and what they find attractive.

Related terms

Substitute Goods: Substitute goods are products that can be used in place of each other. For example, if the price of coffee increases, some consumers may switch to tea as a substitute.

Complementary Goods: Complementary goods are products that are typically consumed together. An example would be peanut butter and jelly - an increase in demand for one often leads to an increase in demand for the other.

Elasticity of Demand: Elasticity of demand measures how responsive the quantity demanded is to changes in price. If consumer tastes change drastically for a product, it can affect its elasticity of demand.