Utility: The Key to Understanding Markets
P.C. Hutchinsonand L. J. MarchantMarcos Ltd
Understanding markets: the Optima model
The basic assumption of the Optima model is that individuals making purchases will choose as if to maximise net utility; this is to say, they will choose the brand which suits them best at the time. The purchase is made in the expectation of the benefits which will ensue; in a sense it these hoped-for benefits rather than the brand itself which the purchaser buys. The term 'net' reminds us that the choice is affected both by the anticipated...