Wednesday, September 4, 2013

Comparing advertising and economics is revealing. Both attempt to understand how people make economic decisions. From their origins over a century ago, they assumed people make rational decisions based on information. Early advertisements were loaded with information about the product. However, advertisers found that people aren't completely rational and other things besides information motivates purchases. For example, soft drinks are sold on emotion, not nutrition. Economists simplify consumers as rational consumers that seek to optimize decisions on utility. However, economists are moving beyond that simplistic view based on insights from studies of behavioral economics.

No comments:

Post a Comment