The Influence of Social Dynamics on Economic Choices: A Behavioural-Zone Framework
Keywords:
Consumer Behaviour, Decision-Making, Economic Psychology, Irrational Choice, Social Dynamics, Social InfluenceAbstract
Consumer behavior has often been framed as a rational and utility-driven process, yet lived choices are deeply shaped by social dynamics. This study addresses that gap by proposing a structured framework that categorizes socially influenced consumption into three analytic zones—Red, Green, and Blue—each reflecting distinct motivational pressures. To operationalize these dynamics, three indices are introduced: the Attention Parameter Index (API), Baseline Marginal Index (BLMI), and Social Cultural Index (SCI). Drawing on both primary survey data and secondary sources, the framework demonstrates measurable explanatory power in capturing how cultural meanings, social perception, and relational influences shape consumer decisions. The findings indicate that economic choice cannot be grasped without these social parameters. In addition to the empirical application, the framework pushes the field of behavioral economics forward by providing researchers with organization of theorizing and provides practitioners with practical advice about how to shape marketing techniques that relate to the social aspects of consumption.
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