1.2.10 Alternative views of consumer behaviour

Question 1

Influences of other people:

Answer 1

Rationality assumes people act individually to maximise their own benefits but sometimes individuals are influenced by social norms

Question 2

Influence of habitual behaviour:

Answer 2

Habits create a barrier to decision making since they limit or prevent consumers considering an alternative

Question 3

Consumer weakness at computation

Answer 3

Many consumers aren’t willing or able to make comparisons between prices and so they will buy more expensive goods than needed