“Consumers behave irrational by keeping products they are dissatisfied with, instead of returning them to the company”

Table of Contents

Chapter 1 - Introduction and Thesis Statement.........................................4 Chapter 2 – Consumer purchase decision process………........................5 Chapter 3 – Theory of consistence…………………………………………….6 3.1 Experiment…………………….............................................6 3.2 Theory of consistence and consumer behaviour...…....…..6 Chapter 4 – Cognitive dissonance……………………………………….…….7 4.1 Cognitive dissonance and consumer behaviour…..............7 Chapter 5 – Further reasons for irrational consumer behaviour………....8 3.1 Sunk cost effect………………......……………………..........8 3.2 Endowment effect…….………………......……………..........9 Chapter 6- Reasons for rational consumer behaviour……….....................9 Chapter 7- Conclusion..................................................................................10 Bibliography...................................................................................................12 Affidavit..........................................................................................................13

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Chapter 1
Introduction
Economic behaviour has long been defined as a rational and cognitive process. This idea assumes that decisions made by humans are based up on functional arguments and information. But many researchers discovered that human behaviour and the process of decision-making is not merely linked to rational aspects. Everyone knows the situation when you have been shopping and find a suit or dress you like. While trying it on you already decide to buy it because it perfectly suits you. As soon as you arrive at home and try on the new accoutrement you discover that this was a mispurchase. This experience is common and affects every consumption areas. Even