1.2.10 Alternative views of consumer behaviour

• Why Consumers May Not Behave Rationally

  Influence of Other People's Behaviour:

  
  

  Consumers are often influenced by the actions and choices of others, which can lead to deviations from rational behavior. (Herding)

  
  

  Social norms, peer pressure, and conformity play a significant role in consumer decision-making.
• Why Consumers May Not Behave Rationally(2)

  Importance of Habitual Behaviour:

  
  

  Consumers often rely on habits and routines in their decision-making processes.

  Habitual behavior can lead to suboptimal choices if consumers do not regularly reevaluate their decisions.
• Why Consumers May Not Behave Rationally(3)

  Consumer Weakness at Computation

  
  

  Some consumers may struggle with complex calculations or may not have access to the information needed to make perfectly rational decisions.

  
  

  Limited cognitive abilities or information constraints can lead to suboptimal choices.
• Why Consumers May Not Behave Rationally(4)

  -Impulse purchases

  -Mental shortcuts

  -information overload