Australia: Are Consumers Irrational?

shopping-in-the-supermarket-(2)A Closer Look at Behavioural Economics and Concept Testing for CPG

Consumers and shoppers are purposeful and will more likely act consistently with their underlying preferences and motivations. This is what makes consumers neatly or broadly rational. Rationality does not assume consumers are conscious of their preferences, motives and decision processes. Consumers operating under System 1 may not always make the most consistent choices but that doesn’t make them in essence irrational consumers. For example, relying on our gut-feel – a typical System 1 strategy – is an effective way to avoid making poor choices. At the end of the day, if the premise is that consumers are irrational, neither measuring perceptions nor emotions nor purchase intentions related to a new product could ever be used to forecast in-market behaviour.

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Gigi_Chan_90px Minnie Choy
Project Director
Email Minnie
Phone +852 2830 2597