In economics a rational consumer is defined as the people who act in a rational way and make rational choices, namely spending their money wisely. Utility is a term used to measure the amount of pleasure a consumer gains from a good or service they choose to invest in, thus spending our money wisely, in economic terms is a method of maximizing our own utility. However in today’s world different societies and individuals have failed to distinguish the different between a want and a need, which has consequently made itself apparent through the fact that human beings are not rational. In order to be a rational consumer people must understand that a need is something that you need to survive, whereas a want isn’t a vital necessity needed to
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Moreover, it isn’t only advertising and style it is also peer pressure that enables human beings to spend their money irrationally. When we are manipulated by either the media or the people around us to invest in products that are more expensive we tend to follow that path because we start to believe that the more money we have to give the better service or use we will get in return. This misconception is a complete fallacy because we often find ourselves buying expensive things for not only ourselves but for our friends, which doesn’t maximize our own utility, thus making human beings irrational consumers.
One of the last reasons as to why human beings aren’t rational consumers is due to the mis-information provided to human beings from advertising and propaganda. Consumers rely on their subconscious to make decisions, which is why they use their first instinct to decide whether or not they like something. Therefore advertising and promotions that come with a certain product or service manipulate the consumer to immediately find the good appealing and subsequently decide that they like the product, thus spending a fortune on attaining it. Thus, to be a rational consumer we must consider the product we are going to invest in through our own judgment and ignore the catchy labels and promotions that come with the good or service we are thinking of investing in. Therefore by allowing advertisements to manipulate us into thinking we