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Context: An assumption of rational choice theory is that individuals make choice decisions based on utility, or the degree of satisfaction and benefit (in the rational sense) they obtain from acquiring a thing

Economics

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Context:

An assumption of rational choice theory is that individuals make choice decisions based on utility, or the degree of satisfaction and benefit (in the rational sense) they obtain from acquiring a thing.

Some non-academic literature uses 'utility' and 'happiness' interchangeably, while economics and the social sciences consider them two separate notions.

 

Research reveals that emotion, especially happiness, influences human decision-making, cognitive processing, and choice behaviour.

 

Emotion is a cause of non-rational ('irrational') decision-making in consumer behaviour, capable of spontaneously disrupting and directing the consumer's choice behaviour to serve as the primary driver of purchase decisions.

Consumers are most prone to emotion affecting their choice behaviour when discovering a new product, with an expected sensation of enjoyment a particularly effective influence.

 

Nesquik's "You can't buy happiness, but you can drink it" and Hugo Boss's "Orange, the aroma of happiness" are good instances of corporations leveraging promises of happiness to increase sales.

 

Question:
How can the marginal utility principle theory affect how consumers make their decisions?

Points to Note:

 1) Please do not repeat what I have written above in the context section in your answer. 

 

2) Please respond using real life examples of real companies

 

3) Please use academic journals to answer the question ONLY - No websites such as investopedia etc  

 

4) Please cite the reference used next to the paragraph you are using it clearly

 

5) Lastly, please cite ALL references including links to the references at the end so i may read up on this in more detail.

 

Answer should not be more than five hundred words