Final answer:
The Theory of Planned Behavior predicts consumer behaviors over which they have incomplete control by examining their intentions and perceptions. This includes the influence of behavioral beliefs, normative beliefs, control beliefs, and the broader scope of behavioral economics. It acknowledges the impact of cognitive, affective, and social factors on economic decision-making.
Step-by-step explanation:
The Theory of Planned Behavior predicts behaviors over which consumers have incomplete control by examining their intentions and perceptions. This theory considers how various factors, such as behavioral beliefs, normative beliefs, and control beliefs, shape an individual's behavioral intentions and, ultimately, their actual behavior. Behavioral economics also contributes to understanding such behaviors by highlighting how emotional states, cognitive biases, and social factors influence economic decisions. For example, people's overspending on taxes could be seen as an irrational action contradicted by traditional consumer theory but explained by behavioral economics, acknowledging the impact of cognitive and affective components such as the fear of losing money or the preference for a future positive outcome (a tax refund).
Moreover, attitudes and beliefs play a significant role in consumer behavior. Attitude encompasses an affective component (feelings), a behavioral component (effect on behavior), and a cognitive component (belief and knowledge), all of which influence the decisions we make. Additionally, as stated in behavioral economics and social psychology, the information available to consumers, group pressures, cognitive dissonance, and persuasion techniques, whether through the central or peripheral route, can greatly influence consumer choices and behaviors.