Rational Choices Flashcards
1
Q
Reasons For Irrational Behaviour
A
-Influenced by social norms/bias
-Herding behaviour
-Habitual behaviour
-Bounded rationality
-Inertia
-Anchoring
-Priming
2
Q
Herding behaviour
A
People following the majority without their own thoughts
3
Q
Habitual behaviour
A
People making decisions due to inability to break habit
4
Q
Bounded rationality
A
Consumers do not have full info to make most beneficial decision
5
Q
Inertia
A
Lack of motivation to change decisions
6
Q
Anchoring
A
Mental reference points that generate preconceptions and expectations
7
Q
Priming
A
Sub-conscious cues influencing decisions e.g product placement
8
Q
Loss Aversion
A
The desire to avoid losing
9
Q
A
