Consumer Well-Being in Judgment and Decision-Making

This chapter reviews research in judgment and decision-making in the past 10–15 years on consumer well-being concerning factors that enhance and impede happiness. The first section reviews recent research on how external stimuli influence consumer behavior, including the valuation of gains and losses, the processing of varied information, the impact of temporal factors, and reactions to different options. The second section outlines critical obstacles for maximizing happiness, including impact bias, affective forecasting error, belief bias, projection bias, and the dilemma of consumer self-control in choosing between virtues and vices. The chapter concludes by emphasizing the real-world application of these findings, underscoring how awareness of these biases can lead to more informed decisions, improved consumer well-being, and increased happiness. Overall, this chapter unravels the complex relationship between external stimuli, consumer choices, and personal experiences. It challenges traditional assumptions and proposes strategies for enhancing well-being. Additionally, this review highlights the immense potential for businesses, policymakers, and individuals to apply these insights, fostering a future where biases are not only recognized but also leveraged to promote consumer well-being and increase happiness.