Consumer Behavior
Consumer behavior examines how individuals make decisions about purchasing goods and services. In experimental and behavioral economics, researchers study real-life choices to understand the psychological factors influencing these decisions, such as emotions, social influences, and cognitive biases. For example, people may buy a product not just for its utility but due to the marketing appeal or peer pressure. These insights help businesses create better products and marketing strategies by recognizing that consumers often act irrationally, guided by feelings and context rather than purely logical evaluations.
Additional Insights
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Consumer behavior refers to the actions and decision-making processes of individuals when purchasing goods and services. It encompasses how consumers choose what to buy, why they prefer certain brands, and how factors like emotions, social influences, and economic conditions affect their choices. Understanding consumer behavior helps businesses tailor their products and marketing strategies to meet the needs and desires of their target audience, ultimately influencing sales and brand loyalty. It combines psychology, sociology, and economics to analyze what drives consumers before, during, and after their purchasing decisions.