Psychology of Economic Decision-Making
The Elaboration Likelihood Model (ELM) is a psychological theory that explains how people process persuasive information and make decisions based on their level of involvement. It posits that there are two main routes of persuasion: the central route, which involves careful and thoughtful consideration of the arguments presented, and the peripheral route, which relies on superficial cues such as attractiveness or credibility of the source. This model is crucial in understanding how consumers make choices and form brand perceptions, influencing their loyalty to brands.
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