The Role of Consumer Decision-Making in Behavioral Economics

This study examines consumer decision-making in purchasing behavior using a mixed-method research design. Primary data were collected from 451 participants via a structured questionnaire using two validated scales: the Consumer Decision-Making Scale and a composite independent-variable scale. Consumer decision-making served as the dependent variable, while Purchase Intention (PI), Impulse and Regret (IR), Price Sensitivity (PS), Trust and Brand Loyalty (TBL), Sustainability and Social Responsibility (SSR), Sales and Marketing Tactics (SMT), and Risk Preference and Discounts (RPD) served as independent variables. Descriptive statistics, Cronbach's Alpha, correlation, ANOVA, and regression analysis were used to estimate relationships among variables. Results reveal that PI, IR, TBL, SSR, SMT, and RPD are significant predictors of consumer decision-making, whereas price sensitivity is an insignificant predictor, failing to independently influence decision-making in the model. These findings indicate that consumer decision-making is driven by psychological, behavioral, and relational factors rather than price considerations alone, as assumed by traditional economic theory. Cognitive factors (purchase intention) and relational factors (trust and brand loyalty) play dominant roles. The findings offer managerial implications, suggesting that businesses should strengthen brand trust and loyalty programs and focus marketing strategies on building purchase intention through targeted campaigns rather than price competition alone.