branding and rationality.

The conflict between marketing and neoclassical economics is summed nicely in the quote from John Sherry, found in The Economist:
“[a brand is] a mental shortcut that discourages rational thought, an infusing [of a product] with the spirit of the maker.�?

I think that marketing effectively endogenises the preferences of the consumer, which means that their rational utility optimisation is compromised. Marketing actually creates demand, making consumers change their consumption desires, rather than consumers simply optimising their spending subjecct to their own preferences.

I don’t think that there is much doubt as to which side of this argument is more effective in explaining consumer behaviours.


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