1.2.10 Alternative views of consumer behaviour


    a) The reasons why consumers may not behave rationally:
    Consideration of the influence of other people’s behaviour, The importance of habitual behaviour and Consumer weakness at computation

    Why do we behave irrationally?
    Heuristics – Making decisions based upon a rule of thumb, cognitive shortcuts
    Bounded rationality – Our decision making or ability to be rational, may be restricted by incomplete information, an inability to process, this information and limited time.
    Sometimes, it is about making the best decision but not necessarily the most rational


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