1.2.10 Alternative views of consumer behavior

Question 1

Behavioural economics

Answer 1

research that considers psychology and human decision making in order to better understand decision-making by investors, consumers and other economic patricipants

Question 2

Computational weakness

Answer 2

occurs when consumers find it difficult to calculate the probability of something when they make purchasing decisions

Question 3

Habitual behaviour

Answer 3

when people have strong default choices and repeat the same behaviour and purchasing choices

Question 4

Herd behaviour

Answer 4

When individuals act collectively as part of a group without making their own decisions