Consumers Businesses
Rational: maximise benefit (utility 滿足感) Rational maximise profit
Not always maximise benefit: Not always maximise profit:
Not good at calculate benefits
• cannot process or compute the information
• make choices based on emotion than rationality Aim to maximise revenue
• occurs when the marginal revenue from selling an extra unit is zero
Unbreakable habits
• Inertia 慣性: consumer loyalty
• Anchoring 錨定效應: get used to the prices/ form an idea of the reasonable price Aim to maximise sales
• alternative business objectives
eg. customer service → spend money on training
Copy others’ behaviour
• Herding 羊群效應: people make decisions based on other people’s choice Prioritise caring for customers
• commitment to customer
Complete charitable work
• aim to raise awareness and money