Final answer:
The statement is true; emotions play a critical role in consumer decision-making and have become a significant part of behavioral economics. Emotional responses can override rational calculations, influencing purchases and financial decisions. Marketers and businesses study emotions to better appeal to consumers.
Step-by-step explanation:
The statement that the role of emotion in consumer decision making has gained importance in recent years is true. Traditional economic and consumer theories have often focused on rational decision-making processes, but the field of behavioral economics highlights that this is not always the case. People's emotions and mental states can significantly influence their buying behavior. For instance, the emotional impact of losing a dollar is often felt more strongly than the satisfaction of gaining a dollar, though objectively, the value is the same. Similarly, emotions can drive decisions in taxation by causing individuals to over withhold, such that they prefer receiving a tax refund instead of owing money, even though this is essentially an interest-free loan to the government.
Marketers have also recognized the importance of consumer emotion and attempt to influence it through tactics like compelling storefront displays. These are designed to evoke emotions that align with a product's perceived status and value addition to a customer's life beyond its utility. In consumer behavior studies, understanding the role of emotions can lead to more effective marketing strategies and better product development that addresses not only the practical needs but also the emotional desires of customers.