Behavioural economics: Insights for effective consumer policy and improved understanding of consumer: A case study of Pathanamthitta district in Kerala, India

Abstract

This study explores the influence of behavioural economics principles on the purchasing decisions of youth in the Pathanamthitta district. It aims to understand how factors such as cognitive biases, emotional influences, social pressures, and heuristics impact the decision-making processes of young consumers in this region. The study employs various behavioural economics principles like loss aversion, framing effect, social proof, and endowment effect to investigate their influence on the buying behaviour of youth. The findings could lead to better-targeted marketing strategies, more effective public policies, and a deeper academic understanding of young consumer psychology in the context of an increasingly complex marketplace.