Address bounded rationality through marketing campaigns to aid consumer’s decision making process.
Decision making is often burdened by confusion, indecision, impulse and more, which is contrary to the “rationality assumption”, where consumers process information objectively before buying. Marketing content must look to offset inconsistencies of a rationality assumption.
Though most customer decisions appear rational, people’s decisions can be influenced by factors like incomplete or imperfect information, unclear criteria and alternatives. With the array of information available online, brands must factor-in consumers’ cognitive biases based on bounded rationality to create nuanced marketing content.
Companies can leverage data from Google and Amazon searches to offer a hierarchy of information and help consumers with decision-making. Algorithm-based, augmented decision-making can tackle bounded rationality. Marketers can address the cognitive biases via automated analytics and better inform consumers’ decisions.
[6 minute read]