Perspectives on Decision Making: Do consumers consume Rationally?

Authors Avatar

Robert Kite 024118736

Robert Kite 024118736

6SZ005 Advanced Consumer Behaviour

Assessment 1

Perspectives on Decision Making: Do consumers consume ‘Rationally’?


Contents


Examine the following statement:

Perspectives on Decision Making: Do consumers consume ‘Rationally’?

How do Marketers take advantage of this?

1. Abstract

In the business world, it is the role of marketing is that is the most crucial.  Businesses can only survive by selling their goods.  The methods used to market products to consumers are becoming increasingly important to businesses.  This study will attempt to explore the following topics:

  • How does the concept or rationality affect the consumer?
  • What influences a consumer?
  • What methods do Marketers use to convince consumers to buy certain products?

Therefore, by examining various theories and sources, this study should be able to answer who ultimately controls the decisions of consumption: the consumer or the marketer.  

     Although my research can be found regarding this topic, no “indefinite answer” has been reached.  It would seem that this question is still up for debate by both intellectuals in the world of both Economics and Psychology.

2. Introduction

If marketing was a mathematical formula, then consumer behaviour would be a ‘variable’.  Just like any variable it is this unpredictability, rationality/irrationality that marketers hope to understand.  It is hard to predict because it is a consumers (sometimes perceived) individuality that affects his or her choices.  Consumption behaviour is therefore a function of who we are as individuals. This is why consumption behaviour is an important piece to the puzzle that is marketing.  Both Economics and Marketing have relied on the notion that consumers behave ‘rationality’.


3. Concept of Rationality

According to Kant, Hegel, Schopenhauer, Nietzsche (1997), pieces of behaviour, beliefs, arguments, policies, and other exercises of the human mind may all be described as ‘rational’. To accept something as rational is to accept it as making sense, as appropriate, or required, or in accordance with some acknowledged goal.  They describe “rationality to be the one way in which persons acts freely, contrasting acting rationally with acting because of uncontrolled passions”.

However, the definition of “irrationality” seems to contradict the theory of “rationality”.  Irrationality is defined as a lack of accord with reason or sound judgment.  If it is rational to make only good decisions, then to make bad decisions is therefore irrational.  That begs the question of “what is a good decision?” Would a decision for example, to give to charity or to buy a playstation, be either good or bad?  Surely a good decision would be up to the individual?  Therefore, is it fair to suggest that all decisions are selfish? It is “irrational” to let emotions cloud our judgement?  

According to Oshavsky & Granbois (1979, 98 & 99), the decision making process is superseded by a choice process, “It typically involves the evaluation of a few alternatives, little external search, few evaluative criteria and simple evaluation process models”.

    Thus, the theory of rational decision-making has declared all real human beings’ decision-making to be ‘irrational’. In short: according to these theories a ‘good’ decision is one that ‘maximises the utility’ of the individual making the decision.

Join now!

3.1 Theory of mind

By examining the ‘theory of mind’ it is clear to see that marketing works on two levels at the same time. Even as marketers succeed in influencing or persuading consumers to do one thing, they are at the same time sending powerful signals as to their motives and intentions. If these motives and intentions are not deemed trustworthy, they trigger ‘revenge’ responses. Even as marketing’s persuasion paradigm appears to work by influencing consumer decisions it is, at the same time, undermining trust and building resistance.

3.2 The decision making process

Most human mental ...

This is a preview of the whole essay