Book Title: Multidisciplinary Research in the Age of Artificial Intelligence
Chief Editors: Dr. Jagdish Kumar Sahu, and Dr. Byram Anand
Associate Editors: Dr. J. Jayamani, and Albeen Josebh Ahmed
Co-Editors: Dr. Sunakshi Verma, and Mr. Pankaj Bharat Devre
ISBN: 978-93-7183-018-8
Chapter: 7
DOI: https://doi.org/10.59646/781/7
Author: Dr. Jagdish Kumar Sahu
Abstract
Consumer decision making is no longer economic, but psychological, social and cognitive, which assumes a rational behaviour. This research paper will outline the significance of behavioural economics in consumer decision-making, the role of cognitive biases, emotions, social practices and the environment of decisions on consumer buying. This study will be a mixed methodology, quantitative data from the consumer survey and consumer purchasing pattern will be analyzed along with qualitative data obtained from structured interviews to analyze the factors influencing consumer purchasing. They indicate that factors such as the aversion to losing something, the ‘anchor’ effect, social proof, the layout of the choice, and so on, have a strong influence on consumer decisions, and are more likely to influence than economic calculations. Moreover, the results show that with the development of digital platforms, personalized marketing and technological innovations, the power of behavioral mechanisms has increased, leading to consumers’ preferences and purchase intentions. Improving consumer experience and developing successful marketing campaigns can be done through behavioral insights, but there are also some problems that need to be addressed: Impulse buying and manipulation through persuasive techniques and ethical considerations on behavioral targeting. The comparative analysis makes a contribution to the knowledge in the fields of behavioural science and economics on two ways: first, it provides empirical evidence on how to mobilize consumers for sustainability; and second, it helps shape the context of consumer decision-making process that will benefit consumers and businesses.
Keywords: Behavioral Economics, Consumer Decision-Making, Cognitive Biases, Consumer Behavior, Choice Architecture, Decision-Making Patterns, Nudging, Psychological Factors, Purchasing Behavior, Behavioral Insights