China’s luxury market – as seen through a behavioral economics lens

Economists do not buy luxury goods, behavioral economists do! For economists, qualities of luxury goods are SIFs (supposedly irrational factors). Why would a “homo economicus” pay more for a product just because it makes one look good among peers, gives a feeling of achievement, or has been made by an overpaid craftsman in some small … Continue reading China’s luxury market – as seen through a behavioral economics lens

Self-driving consumers – making choices, not decisions

Making choices, but not decisions Every time the consumers buy a brand, they exercise a choice, but do they necessarily make a brand decision? Marketing prides itself on the mastery of theories and strategies to persuade consumers to choose their brands. Marketers conjure up visions of consumers engaged in huge mental tussles of decisions about which brand … Continue reading Self-driving consumers – making choices, not decisions