Behavioural Concepts
Limited ability to process information.
What is bounded rationality?
A strategy to influence behaviour subtly.
What is a nudge?
Businesses often use this to influence spending.
What is advertising?
Limited self-control.
What is bounded willpower?
Packaging designed to reduce smoking.
What is plain packaging?
Reward cards encourage this behaviour.
What is repeat purchasing?
Considering fairness and others.
What is bounded self-interest?
Taxes on unhealthy goods are intended to do this.
What is discourage consumption?
Businesses study this to increase profits.
What is consumer behaviour?
The field studying behaviour and economics together.
What is behavioural economics?
Behavioural economics can improve this government goal.
What is living standards?
Behavioural economics challenges this traditional assumption.
What is perfect rationality?
The traditional assumption about decision-making.
What is rationality?
Behavioural strategies often target this aspect of consumers.
What are biases/heuristics/emotions?
A strategy inviting a consumer to behave in a way that is like others.
What is herd behaviour?