10). Alternative views of consumer behaviour

Cards (7)

What are the 3 main reasons to why people do not behave rationally?
Influences of people
Influences on habitual behaviour
Consumer weakness at computation
What is Habitual Behaviour?
It is when consumers develop consumption habits, which may lead to persistent behaviour, even if it is costly.
What is 'Herding'?
A type of behaviour where people take decisions based on the actions of others and not for its intrinsic value.
What is Altruistic Behaviour?
It is when consumers act in a way that is socially responsible rather than based on maximising their own utility.
What is the 'Nudge Theory'?
An analysis that suggests that people's behaviour can be influenced by making desirable decisions easy to make.
What is Impulsive Behaviour?
It is when consumers make spontaneous decisions to buy a product on impulsive rather than through rational thought.
What are Computation Problems?
When consumers either have more information than they are able to absorb or that information is difficult to gather or analyse.