Question

Do you believe consumers do behave rationally? Ifs so, how do you explain impulse buying, buying as a result of advertising or strong sales pitches, buying for purposes of conspicuous consumption, or buying to simply have something bigger and better than someone else? Does consumers not behave rationally. If you think consumers do behave rationally, how can rational thinking explain the their behaviors? How do your thoughts impact, if at all, your opinion of the theory espoused in our text?

Answer 1

A rational behavior decision-making process is based on making choices that result in the most optimal level of benefit or utility for the individual. On the off chance that we talk from the point of view of Rational Choice Theory in a smaller scale setting, which essentially says that people choose in light of their own computations of "costs" versus "benefits", at that point the normal decision would be characterized as the one where benefits exceed the expenses. The critical thing to note here is the person's judgment/figuring of expenses vs.benefits, and not somebody who is an eyewitness of the conduct. For instance, a mother pitching her child to purchase an I-telephone feels that her decision is reasonable in light of the fact that her own particular figured advantages exceed the expenses.

Consumer behavior considers the many reasons why—personal, situational, psychological, and social—people shop for products, buy and use them, and then dispose of them. Consumers don’t necessarily go through all the buying stages when they’re considering purchasing product. Purchasing a product with no planning or forethought is called Impulse Buying. Impulse buying brings up a concept called level of involvement. Low-involvement products aren’t necessarily purchased on impulse, although they can be. Therefore, I do believe that consumers behave rationally in making the purchase often.