Consumer behavior plays a crucial element in establishing the development of a business, as it directly affects the determinants of a market structure. The number of sellers, number of buyers, product...

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Extracted text: Consumer behavior plays a crucial element in establishing the development of a business, as it directly affects the determinants of a market structure. The number of sellers, number of buyers, product differentiation, and entry barriers of a market somehow depend on the purchasing decisions, behavior, and activities of consumers. This behavioral study holds power to the gaps (demands) in the market, uniqueness of commodities offered, pricing, and the ease of entering and competing in the market, which interrelatedly affects the number of suppliers and purchasers interested. As entrepreneurs familiarize themselves with consumer behavior, they may identify what structure their businesses will fall under: perfect competition, monopoly, oligopoly, or monopolistic competition. By knowing the market structure to which an entity belongs, the entrepreneurs may recognize its strengths and weaknesses, which may be beneficial in planning and establishing its growth over time.