When it comes to making choices, we like to think of ourselves as rational beings, right? We analyse our options. We calculate outcomes. We choose the option that gives us the most satisfaction. At least, that’s what traditional economic theory tells us! However, upon closer examination, we quickly discover this: The process is often much more complex. Human behaviour involves many factors. Spoiler alert: it’s not always logical!
In this blog, we’ll dive into the fascinating world of consumer behaviour, exploring the differences between rational and irrational choices. You’ll see how emotions, habits, and social influences can steer our decisions off the path of logic. Let’s get started!
Follow us on Instagram, Facebook and LinkedIn.
FAQs
What is rational consumer behaviour?
Rational consumer behaviour involves making decisions that maximise satisfaction by evaluating all available options based on costs and benefits.
What are some common causes of irrational behaviour?
Irrational behaviour can stem from emotional influences, habitual choices, social norms, cognitive biases, bounded rationality and overconfidence.
How does irrational behaviour affect markets?
Irrational consumer behaviour can lead to market inefficiencies and trends. It influences prices and creates bubbles based on emotional purchasing rather than logical assessments.
Why is understanding consumer behaviour important for A-Level Economics?
Understanding consumer behaviour helps students analyse real-world economic events, grasp the limitations of classical models and prepare for market dynamics.
How can Apollo Scholars help with my A-Level Economics studies?
Apollo Scholars offers tailored tutoring sessions on economics concepts. These sessions focus on areas including consumer behaviour. This approach helps you excel in your A-Level studies.
Subscribe to get access
Read more of this content when you subscribe today.
Leave a reply to Economics: What It Is and Why You Should Care (Yes, Really) – Apollo Scholars Cancel reply