The consumer no more works on the basic
economic assumption of rationality. Under the influence of psychological and social factors,
the consumer desires to conform to societal norms. The consumer does not only consume the
good for its intrinsic value but also to climb up the virtual social ladder.
Rationality, Consumer Behaviour and Business Models
Published on :Behavioural Economics, in fact, dictates that we might not be as rational as we think we are. There are a lot of factors that influence our behavior and traditional economic theory does not always suffice for the explanations.