Decisions play a pivotal role in our life. Be it consciously or sub-consciously we make a choice with every passing minute. But do we ever stop to question why we do what we do? What goes through our mind when we select a product over a competing product? How do we order our preferences? What drives these instincts? The human mind is such that it quickly processes a situation and moves on to tackle the next.
As consumers we are faced with multiple choices. So how do we decide to purchase a certain product? A rational consumer would go for one that would maximize his utility. But is this value always quantifiable? There are just so many aspects that it becomes difficult to assess consumer choice. Consumer choice is subjective. And the presence of options makes the choice tougher.
With the advent of behavioural economics in today’s markets, its significance has started to increase simultaneously. It is a field that can be heavily explored as human behaviour is predictably irrational and we are open to a hoard of opportunities. As consumers we need to get smarter with the coming age. With the introduction of behavioural economics in today’s world the estimation of utility of products goes beyond the materialistic values.
IRIANS – The Neuroscience Institute