Psychology of Economic Decision-Making
Cognitive dissonance theory explains the mental discomfort that arises when a person holds contradictory beliefs, values, or attitudes, especially when their behavior conflicts with these beliefs. This discomfort often motivates individuals to change their beliefs or behaviors to restore harmony. In the context of brand perception and consumer loyalty, cognitive dissonance plays a crucial role as consumers seek to align their purchasing decisions with their personal values and self-image.
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