Mental Accounting and Consumer Choice: Anatomy of a Failure

Thaler, Richard H.
January 2008
Marketing Science;Jan/Feb2008, Vol. 27 Issue 1, p12
Academic Journal
The author offers his views on mental accounting, the process by which individuals and households keep track of and evaluate their transactions. He expresses disappointment that although there are many psychologists in marketing interested in judgment and decision making, and few interested in mental accounting, the number of economists taking a behavioral approach to marketing research little. He believes that one reason why behavioral economics has not taken off in marketing is that there are already lots of psychologists in the field.


Related Articles

  • The Effect of Partitions on Controlling Consumption. Cheema, Amar; Soman, Dilip // Journal of Marketing Research (JMR);Dec2008, Vol. 45 Issue 6, p665 

    The authors demonstrate that partitioning an aggregate quantity of a resource (e.g., food, money) into smaller units reduces the consumed quantity or the rate of consumption of that resource. Partitions draw attention to the consumption decision by introducing a small transaction cost; that is,...

  • Researchers should be involved throughout marketing decision process. Sherman, Jason // Advertising Age's Business Marketing;Mar1999, Vol. 84 Issue 3, p10 

    Discusses the contributions that researchers can make at each step of the marketing decision process. Identifying marketing opportunities; Identifying risks; Formulating research objectives; Selecting and using proper tools; Analyzing and synthesizing data; Applying insight to decision.

  • Short-notice focus groups. Day, Janet R.; Gombeski Jr., William R. // Marketing Research;Dec92, Vol. 4 Issue 4, p4 

    Looks at the program conducted by the market research department at the Cleveland Clinic Foundation to developed a process of conducting focus groups with on short notice. Objectives of program; Mechanics of conducting groups; Costs; References; Conclusions. INSETS: Rapid response qualitative...

  • Effective Marketing Science Applications: Insights from the ISMS-MSI Practice Prize Finalist Papers and Projects. Lilien, Gary L.; Roberts, John H.; Shankar, Venkatesh // Marketing Science;Mar/Apr2013, Vol. 32 Issue 2, p229 

    From 2003 to 2012, the ISMS-MSI Practice Prize/Award competition has documented 25 impactful projects, with associated papers appearing in Marketing Science. This article reviews these papers and projects, examines their influence on the relevant organizations, and provides a perspective on the...

  • Applying a Dynamic Model of Consumer Choice to Guide Brand Development at Jetstar Airways. Danaher, Peter J.; Roberts, John H.; Roberts, Ken; Simpson, Alan // Marketing Science;Jul/Aug2011, Vol. 30 Issue 4, p586 

    This paper describes the use of a marketing science model by Jetstar, a subsidiary of Australia's leading airline, Qantas, to effectively and profitably compete in the low-cost carrier marketplace. We trace the evolution of the Jetstar strategy from a baseline calibration of its initial...

  • Comments on Conjoint Analysis with Partial Profiles. Rao, Vithala R. // Journal of Marketing Research (JMR);Nov2004, Vol. 41 Issue 4, p388 

    This article presents the author's opinion on an article by Bradlow, Hu and Ho (BHH), who examined conjoint analysis research. It is suggested that their model hypothesized that subjects learn from the patterns of nonmissing attributes in partial profiles and impute values to the missing values...

  • Marketing Models and the Lucas Critique. VAN HEERDE, HARALD J.; DEKIMPE, MARNIK G.; PUTSIS JR., WILLIAM P. // Journal of Marketing Research (JMR);Feb2005, Vol. 42 Issue 1, p15 

    This article addresses the Lucas critique with the idea that economic agents are forward rather than backward looking and adapt their expectations and behavior to new policy. The authors suggest that there are three key requirements for the critique to be relevant, such as economic agents are...

  • Structural Modeling and Policy Simulation. BRONNENBERG, BART J.; ROSSI, PETER E.; VILCASSIM, NAUFEL J. // Journal of Marketing Research (JMR);Feb2005, Vol. 42 Issue 1, p22 

    This article outlines several advantages of using structural modeling for policy evaluations and some of the challenges presented by marketing problems. The authors note that a primary goal of research in marketing is to evaluate and recommend optimal policies for marketing actions. A structural...

  • Diagnostics, Expectations, and Endogeneity. FRANSES, PHILIP HANS // Journal of Marketing Research (JMR);Feb2005, Vol. 42 Issue 1, p27 

    Marketing models are often intended to guide managers to make decisions. In this rejoinder, the author reviews three questions that must be addressed before model can be established as useful for policy analysis.


Read the Article


Sign out of this library

Other Topics