Rational Consumer with
5 positive Consumer Surplus
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Willingness To Pay Price You Pay

What a marketer would
like to do – capture all
Consumer Surplus
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Willingness To Pay Price You Pay

Predictably Irrational Consumer –
Conspicuous Consumption
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Willingness To Pay Price You Pay

Willingness to Pay post-purchase– Buy
emotionally, justify rationally
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Willingness To Pay Price You Pay

What led to the credit crisis – Hedonistic
5 and Conspicuous consumption
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Willingness To Pay Wherewithal To Pay

Sobering Effect of Current Economic Crisis
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Willingness To Pay Wherewithal To Pay

Willingness Wherewithal
To Pay To Pay
Smart Consumer