a) Irrational decision making

• the factors that influence a consumer’s irrational decision making

• habitual behaviour

• weakness at computation

• the influence of other people’s behaviour

• (irrational decision making)

• examples of consumer’s being influenced by other people’s behaviour

• firm behaviour

  • branding

  • advertising

• consumer behaviour

  • celebrity promotions

  • family endorsements

• habitual behaviour causes irrational decision making because…

• consumers prioritise convenience and rely on habits

• examples of habitual behaviour

• brand loyalty

• availability bias

• impulse purchasing

• weakness at computation causes irrational decision making…

• state examples

• consumers lack the time and ability to compare the relative prices of products

• examples of a weakness at computation

• difficult price comparisons of products with different volumes

• the use of shortcuts (brand loyalty or availability bias) over full calculations