In behavioral economics, the consumer is not a very rational agent that calculates costs and benefits with great relevance. Emotions play a large role in the act of purchasing. How people should behave in terms of consumer choice and investment in order to maximize the best decisions. This approach has led to a theory of the rational actor, whether consumer or producer, and from there, it inferred policy conclusions on how the economy should be managed: what are the best institutions and better decisions about resource allocation.
Emotions play an important role first in our buying behavior. Most of our actions are guided by emotion rather than reason. If you experience the unpleasant experience to find yourself dealing with a tiger, your first reaction is to flee and not to deliberate what is the best attitude to adopt. In everyday life, most of the time and it's done.
An emotion like fear is good adviser: it pushes us to flee the face of danger. But emotions lead us to yield to stimuli that are presented to us. Most consumer products are designed to elicit emotional reactions in us: for example, Dunkin 'Donuts (U.S. cakes found in all food shops) are shaped and presented to the envy foodies who love sugar and cream. Storefronts have products so as to make them as attractive as possible and cause the temptation of consumers. Therefore, in a supermarket, we often buy more things than we had originally anticipated: our desires were stimulated by the presentation of attractive products, put before our eyes and fingertips.
Emotions highly affect consumer purchases and our everyday lives, no matter if we are discussing about emotions' impact on how we see advertisements or their input in our evaluation of received value and in forming our perceived satisfaction.
Emotions do significantly affect consumers' purchase decision. If we see customer based brand equity model (Keller, 2009), then we get to know that in order for a brand to build brand equity and to gain loyalty of customers specifically for repeated purchases a brand has to appeal rationally as well as emotionally in order to reach to the level of brand resonance.
Consumers , who make purchase decisions , are human beings. Human beings are emotional species. They can' t be without emotions. Emotions are inner feelings or attachment towards an object, person, philosophy etc. Thus consumers' purchase decisions are likely to be influenced by their emotions. Consumers' buying behavior is not always rational, that is why, it can be influenced by various factors. Good marketers are aware of this.