Irrational Behaviour In Consumers Flashcards
1
Q
Habitual behaviour + consumer inertia
A
Irrationally sticking with one good or service due to it being a habit, even if it is not the logical choice
2
Q
Bounded rationality - caused by
A
- ability to process info - computational ability
- not enough information to make correct decision - asymmetric information
- time available to process information
3
Q
Bounded control
A
A desire for instant and immediate gratification - hyperbolic discounting
4
Q
Emotional judgements
A
Emotion overtakes logic
5
Q
Others influence
A
Herd behaviour / peer pressure
