Document Type Master's Dissertation Author Ramphal, Suchita URN etd-03312010-150555 Document Title Mental accounting : the psychology of South African consumer behaviour Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Prof D Beaty Supervisor Keywords
- consumer behaviour
Date 2007-04-08 Availability unrestricted Abstract
When standard economic theories failed to be consistent predictors of consumer behaviour, Thaler (1980, 1985) developed the theory of mental accounting, which takes behavioural factors into consideration.
Prelec & Loewenstein (1998), Heath & Soll (1996) and Gourville & Soman (1998) extended Thalerís (1980,1985) work to develop the theories of prospective accounting, mental budgeting, and payment depreciation of the sunk cost effect.
The purpose of this research is to use the methodologies of Prelec & Loewenstein (1998), Heath & Soll (1996), and Gourville & Soman (1998) to determine whether their theories of mental accounting exist amongst South African consumers. If this is found to be the case, the findings can be used by marketers towards the creation of a strategy that could exploit these effects.
This research shows that there is insufficient evidence for the existence of mental budgeting amongst South African consumers. However, there is significant evidence for the existence of prospective accounting and the sunk cost effect. In addition, a variation of payment depreciation was found to exist. Thus, mental accounting has been shown to exist amongst South African consumers.
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Please cite as follows:
Ramphal, S 2006, Mental accounting : the psychology of South African consumer behaviour, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03312010-150555/ >
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