Managers, learn this bit of economics
- Somali Ghosh
- Apr 07, 2024, 20:56 IST IST
We have all experienced the law of Diminishing Marginal Utility (DMU) in practice. We may have been eating our favourite dessert, a cookie, or a piece of cake, and found that beyond a point eating more just did not give the same level of satisfaction.
The more we have of something the less we value it subsequently. DMU, which originated in economics, is especially potent when incremental consumption of a product happens in quick succession. It touches many aspects of business, especially the marketing strategies associated with hotels, restaurants, social media posting schedules, brand and product management, discounting etc.
The more we have of something the less we value it subsequently. DMU, which originated in economics, is especially potent when incremental consumption of a product happens in quick succession. It touches many aspects of business, especially the marketing strategies associated with hotels, restaurants, social media posting schedules, brand and product management, discounting etc.
