Irrational Consumer Behavior in the TikTok Short Drama Industry

Shenqi Wang

Co-Presenters: Huiting Yang

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Bethencourt, Francisco

Abstract:

Abstract:The rapid expansion of TikTok short dramas has reshaped digital entertainment through brief, emotionally engaging episodes designed for continuous viewing. These platforms commonly employ a freemium pricing model, allowing users to begin watching at no cost before requiring small payments to unlock additional content. While this approach has supported strong industry growth, it also raises questions about how platform design influences consumer decision-making. This study examines the mechanisms that contribute to irrational consumption behavior within the TikTok short drama market.This research focuses on how emotional storytelling, cliffhangers, and low-salience microtransactions reduce consumers’ awareness of cumulative costs and weaken price sensitivity. Drawing on a behavioral economics framework, the study applies concepts such as price elasticity, mental accounting, and sunk cost effects to explain why consumers may continue purchasing episodes despite longer-term financial or time-related trade-offs. The analysis indicates that once an initial purchase is made, subsequent payments become less noticeable, shifting consumers’ stopping points and encouraging continued consumption.Overall, the findings suggest that consumer behavior in the short drama industry is shaped not only by content appeal but also by platform structures that emphasize short-term gratification. Although this model contributes to economic growth, reliance on emotionally driven consumption raises concerns about long-term sustainability and consumer economic well-being. These results highlight the importance of responsible platform design that supports innovation and profitability while promoting healthier and more sustainable patterns of participation in the digital economy.Keywords: TikTok Short Drama, Consumer Behavior, Behavioral Economics, Microtransactions, Digital Economy.