The human behavior has significant impacts on the economy because decisions such as consumption, production, savings and investment depend on people’s beliefs, attitudes and preferences. The variation in the degree of risk in purchase decisions forces consumers to evaluate the worth of goods in order to derive maximum utility from the goods.
The degree of risk associated with various products determines the consumer’s likelihood to choose a product. Consumers in the real world lack full knowledge of the vuaculture has introduced concerns regarding the sustainability of the environment. The individual attitudes and perceptions regarding the environment have significant impacts on consumer behavior. The essay f salmons from fish farms in Scotland.
The case study of Scottish aquaculture salmon aquaculture uses indicators relating to socio-economic benefits and environmental damage to establish whether the people’s purchase decision relate to their views on the impacts of fish farming on the environment. An analysis of the frequency of salmon purchases illustrates a relationship between the demand for farmed fish and the concerns on the environmental impacts of the products (Whitmarsh and Palmieri 142).
Consumers concerned about the environmental impacts of fish farming are less likely to purchase farmed salmons. The case study demonstrates that consumer uncertainty regarding the environmental effects of fish farming in Scotland influences purchasing behavior. Salmon consumers ensure to reduce their uncertainty about the environmental impacts of fish farming by minimizing the purchase of farmed salons. The case study demonstrates a relationship between the availability of information relating to a purchase decision and the degree of consumer uncertainty.
Limited knowledge or incorrect information on aquaculture is likely to influence reduced consumption of farmed salmons. The case study presents a challenge to the aquaculture industry to adopt measures focused on increasing the public awareness on fish farming practices. Adequate knowledge on fish farming would considerably reduce the uncertainty regarding farmed salmons and persuade potential consumers to change their purchase decisions in the context of environmental concerns.
The evidence regarding the influence of environmental preferences on consumption demonstrates that consumers who are sensitive about sustainable environmental practices will exhibit behaviors and preferences, which allocate a high degree of engagement to product providers engaged in activities that minimize their uncertainty on the environmental impacts of the product. The influence of uncertainty on consumers prevails due to the absence of data, which introduces challenges regarding judging the brand preference based on its factual attributes (Pindyck and Rubinfeld 213).
Decision making by individual consumers occurs mainly without the participation of experts, which predisposes consumers to a high degree of uncertainty. The dependence of purchasing decisions of consumers on the degree of uncertainty varies depending on the context and attributes variables relating to a product. Consumers who are sensitive to environmental sustainability consider the failure to purchase farmed salmon to have a high aggregate utility in terms of minimizing the risks of environmental damage. The uncertainty on the fish farming practices influences the decline in the relative advantage of purchasing a farmed salmon.
Works Cited
Pindyck, Robert S., and Daniel L. Rubinfeld. Microeconomics. 6th ed. Upper Saddle River, N.J.: Pearson Prentice Hall, 2005. Print.
Whitmarsh, David, and Maria Giovanna Palmieri. “Consumer behaviour and environmental preferences: a case study of Scottish salmon aquaculture.”
Aquaculture Research 42 (2011): 142-147. Print.