Consumer Decision Making

In a selective review of what is known about consumer decision making, we highlight ways in which consumers deviate from the classical economic model of homo economicus. We first consider how consumer preferences are influenced by characteristics of the decision task and context, such as choice set size, attribute quantity, option similarity and justifiability, presentation format, and response mode. We then review how the interplay of affect and cognitions affects consumer decision making, and how consumers misforecast their consumption experiences, cope with self-control difficulties, and make poorer decisions as they try to choose well. Finally, we advocate using insights on consumer decision making to design choice settings helping consumers make better decisions. Keywords: consumer decision making; behavioral decision theory; choice; judgment; behavioral economics