Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
BEHAVIORAL ECONOMICS : WHY CONSUMERS ARE UNREASONABLE SPENDERS
CONSUMERS DO NOT ALWAYS MAKE RATIONAL DECISIONS It's often assumed consumers always make buying decisions based on costs a...
“In this field, we don’t assume that people are perfectly sensible, calculating machines. Instead, we observe how people a...
LET’S ELABORATE ON WHAT BEHAVIORAL ECONOMICS TELLS US, BY LOOKING AT HOW ANNIE SHOPS.
FIRST STOP: ELECTRONICS Out of all laptops with 1 TB storage, she chose the one that offered a 24- month installment plan.
Consumers love layaway or installment plans because small delays of payment make the painful parting with your precious ca...
SECOND STOP: WALLETS Annie fell in love with so many chic leather wallets that she got confused. She couldn’t pick one, so...
ACCORDING TO BEHAVIORAL ECONOMICS… “Choice Overload” forces consumers to think harder before making a decision. This reduc...
THIRD STOP: SOCKS Annie walked past her favorite sock brand to choose from the huge buy- one-get-one pile.
ACCORDING TO BEHAVIORAL ECONOMICS… Consumers love the word “free.” It magically evokes positive feelings toward a product.
FOURTH STOP: TOWELS After comparing the absorbency, fiber content and style of several different towels, she narrowed down...
ACCORDING TO BEHAVIORAL ECONOMICS… Consumers associate price with product quality. The brain apparently assumes that the h...
FIFTH STOP: CLOTHES Annie checked out the newest boutique in town. She noticed that their prices were much lower than at h...
Once consumers have mentally established a set price for a particular product or product type, their willingness to buy si...
“It is true that from a behavioral economics perspective we are fallible, easily confused, not that smart, and often irrat...
contact: support@slideshop.com fb: theslideshop twitter: @slide_shop blog: http://blog.slideshop.com/ pinterest: Slideshop...
Upcoming SlideShare
Loading in …5
×

Behavioral Economics: Why Consumers Are Unreasonable Spenders

30,924 views

Published on

Consumers do not always purchase goods based on facts or logic. Emotions and social psychology sometimes play a role in the buying decision process.

Published in: Retail, Marketing
no profile picture user
  • I made $2,600 with this. I already have 7 days with this... ●●● https://tinyurl.com/realmoneystreams2019
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Proof Of REAL Growth. Women Lie: Size DOES Matter, They HATE It When It's Small. Don't Disapoint Her With Your Little Guy. ●●● https://tinyurl.com/ydaetwbk
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Sex in your area for one night is there tinyurl.com/hotsexinarea Copy and paste link in your browser to visit a site)
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I'll tell you right now (and I've got proof), that anyone who tells you "size doesn't matter to women" is flat out lying to your face and trying to make you feel better... Heck, just recently I asked a focus group of women via an anonymous online survey if size matters, and again and again they said "Oh my god, I HATE IT when it's SMALL." For a long time I didn't know what to tell the guys who'd write in to me and ask how to get "bigger." I'd say something lame like "Women actually like guys who are smaller... you just have to get good with your hands." Then I found "THE BIBLE of Penis Enlargement" by this guy named John Collins  https://tinyurl.com/ydaetwbk
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • WHAT MEN SECRETLY WANT. The #1 phrase that will make your man chase you like crazy, read more... ♣♣♣ http://ishbv.com/hissecret/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
Show More
Show More

Behavioral Economics: Why Consumers Are Unreasonable Spenders

  1. BEHAVIORAL ECONOMICS : WHY CONSUMERS ARE UNREASONABLE SPENDERS
  2. CONSUMERS DO NOT ALWAYS MAKE RATIONAL DECISIONS It's often assumed consumers always make buying decisions based on costs and benefits. It turns out personal biases and habits often divert them from what would seem to be rational thinking.
  3. “In this field, we don’t assume that people are perfectly sensible, calculating machines. Instead, we observe how people actually behave, and quite often our observations lead us to the conclusion that human beings are irrational.” THIS TYPE OF CONSUMER BEHAVIOR LED TO THE STUDY OF BEHAVIORAL ECONOMICS -DAN ARIELY-
  4. LET’S ELABORATE ON WHAT BEHAVIORAL ECONOMICS TELLS US, BY LOOKING AT HOW ANNIE SHOPS.
  5. FIRST STOP: ELECTRONICS Out of all laptops with 1 TB storage, she chose the one that offered a 24- month installment plan.
  6. Consumers love layaway or installment plans because small delays of payment make the painful parting with your precious cash more bearable. ACCORDING TO BEHAVIORAL ECONOMICS… 24-MONTH INSTALLMENT PLAN
  7. SECOND STOP: WALLETS Annie fell in love with so many chic leather wallets that she got confused. She couldn’t pick one, so she opted not to buy any of them on this trip.
  8. ACCORDING TO BEHAVIORAL ECONOMICS… “Choice Overload” forces consumers to think harder before making a decision. This reduces the likelihood of purchase.
  9. THIRD STOP: SOCKS Annie walked past her favorite sock brand to choose from the huge buy- one-get-one pile.
  10. ACCORDING TO BEHAVIORAL ECONOMICS… Consumers love the word “free.” It magically evokes positive feelings toward a product.
  11. FOURTH STOP: TOWELS After comparing the absorbency, fiber content and style of several different towels, she narrowed down her options to two. Then she decided to buy the more expensive one.
  12. ACCORDING TO BEHAVIORAL ECONOMICS… Consumers associate price with product quality. The brain apparently assumes that the higher the price, the better the quality. HIGH QUALITY
  13. FIFTH STOP: CLOTHES Annie checked out the newest boutique in town. She noticed that their prices were much lower than at her favorite shop. She purchased a couple of blouses.
  14. Once consumers have mentally established a set price for a particular product or product type, their willingness to buy similar items depends on this “anchor price.” ACCORDING TO BEHAVIORAL ECONOMICS…
  15. “It is true that from a behavioral economics perspective we are fallible, easily confused, not that smart, and often irrational. We are more like Homer Simpson than Superman. So from this perspective it is rather depressing. But at the same time there is also a silver lining. There are free lunches!” - Dan Ariely -
  16. contact: support@slideshop.com fb: theslideshop twitter: @slide_shop blog: http://blog.slideshop.com/ pinterest: Slideshop slideshare: slideshop.com phone number: +1 602 559 4554 The world's leading supplier of unique, creative and effective PowerPoint templates. Do you want to customize this presentation? Download the PowerPoint file. Download

×