Herd Behavior as a Result of the Presentation of Irrational of Consumer at Product MarketsJournal: Herald of the Economic Sciences of Ukraine (Vol.31, No. 2)
Publication Date: 2016-12-01
Authors : Lepa R.; Shumilo Ya.;
Page : 111-113
Keywords : consumers; irrational behavior; herd behavior; non-functional demand; market products;
The article is devoted to the study of herd behavior of consumers in the product markets. The nature of herd behavior as a consequence of human irrationality in the behavior of consumers in the product markets. It was indicated that as a result of manifestation of the irrational behavior of consumers on product markets there is the phenomenon of non-functional demand. It was revealed that the cause of the manifestations of nonfunctional demand: Veblen effect, snob effect, the effect of accession to the majority of speculative demand - is a manifestation of irrationality in the behavior of consumers and, as a consequence, the herd behavior in the product markets. It is proved that the herd behavior of consumers in the market of sales is the result of manifestations of irrationality. It is concluded that the non-functional demands may be adjusted by means of mechanisms of influence on the herd behavior. Outlined promising areas of research.
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