Summary: Consumer Behavior
Mental accounting can be said to be a set of cognitive operations that households and individuals use to organize, evaluate and keep track of their financial activities. This paper gives a summary about our current understanding about the nature of people’s engagement in mental accounting techniques. This paper concentrates on the three components of mental accounting. The first one is concerned with how people perceive and experience outcomes, and how decisions are made and then evaluated. For example, a consumer choice can be understood by incorporating value of the deal. The second component of mental accounting involves assigning activities to certain ...
