Conceptual Analysis of the Media Business Through Microeconomic Perspectives
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Abstract
One of the most important lessons economics can provide is the understanding of the art of balancing expenditure and savings. Consumers often struggle to control their spending when it comes to the consumption of media content. Resources are not abundant. Therefore, no amount of production can justify the wants of the people. While a large section of the mass media (Ex, television, Social Media, etc.) is free to consume, the question remains, if not money, what else are we paying? Therefore, understanding media consumption requires a deeper understanding of microeconomic factors, especially for marketers and advertisers.
The study applies the interdisciplinary approach to connect two social science disciplines, economics, with media and communication, to apply the theoretical concepts of microeconomics in the media and communication. Conceptual analysis was used to explain the economic concepts of consumer demand, utility, indifference curve, goods substitution, and consumer equilibrium to understand the content consumption from the media and communication perspective. It is to apply the mentioned concepts in the media and communication industry with the help of graphical, mathematical, and statistical applications through pertinent examples that help in understanding and predicting consumers' utility and preference over a particular product, or a good or service bundle. The understanding will help marketers not only to understand the consumption pattern but also to design their promotional campaign with clarity and efficiency.
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