1.2.10 Alternate Views On Consumer Behaviour

Question 1

Why may consumers not behave rationally?

Answer 1

-influence of other people’s behaviour scared in missing out. E.g fashion

-importance on habitual behaviour often rely on habits to make decisions like buying same toothpaste without seeing alternatives

-consumer weakness at computation
Struggle on complex calculations and will not see cheaper alternatives

-inertia
They have a tendency to do nothin or remain unchanged through sense of brand loyalty
E.g car insurance gas electricity

Question 2

Evaluative points?

Answer 2

Irrational behaviour may change in the long term