Question

Connection between incentive and utility

Answer 1

Marketing's sole purpose is to convince consumers that a certain product will add to their overall utility, or satisfaction one gets from a good.

Answer 2

Incentive does not change your utility function, but they change the point where it is maximize because it changes your budget constraints, For example frequent flyer miles reward you for choosing one airline over another because it has the effect of making their fares cheaper if you always pick them, or the higher tax rates on singles is an incentive for them to choose more leisure and less income because it reduce the amount of extra income they get from extra work, so single people work less than married people.