The Limited Consumer Rationality and the Role of Environmental Cues

Abstract

The ideal of rational consumer rests on the assumption that individuals already hold perfect information and consumer behavior results from the preferences based on this information. Today, consumers enjoy access to more information than ever before, but, on the other hand, they frequently reach decisions with limited deliberation. With its flow of information, does the age of the Internet encourage the ideal of consumer rationality? Our aim is to explore the role of social influences and environmental cues on consumer online behavior and to derive implications for improving our understanding of online behaviors. Research findings on influence tactics highlight an increasing importance of social cues in assessing online information, while experiments in social psychology reveal the role of unconscious processes in automatically activating attitudes and behaviors. We discuss implications for developing our understanding of online consumer behavior and advancements necessary for consumer research.
Classification-JEL:
Keywords: Consumer rationality; Online behavior; Social proof; Influence tactics; Consumer decision-making; Limited deliberation