Behaviour Economics in Marketing

Dr Jyoti Sharma

Senior Academic consultant

MAHIAA  ENERGY AND ENVIRONMENT TECHNOLOGY CONSULTANCY SERVICES DELHI

Email jyotiblogger27@gmail.com

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Behaviour Economics is primarily concerned with the bound of rationality of economics agents. Behaviour models typically integrate insight from psychology and micro economics theory, in doing so these behaviour models cover a range of concepts, methods and field

Behaviour economics along with the related sub field behavior finance, studies emotional factors on the economics decisions of individuals and institutions and the effects for market prices , returns and resource allocation in different kind  of behaviour  in different environment of varying experimental values

There is attractive simplicity to the nation that consumers choose what they want. It really makes the work of marketer relatively straight forward and easy. It gives the people right information and they will synthesize it, weight their various interests and make the most informed choice. By this account the brain is both a logical processor and a perfectly calibrated scale. “But consumer’s decision making is not in fact, Just about availability of information,” says Rani Dhar , Director of the Center for Customer Insight .

Behaviour economics injects the standard marketing approval with insight from the past three decades of psychology and economics and marketing research. Though firms spends billions of dollars every year attempting to persuade current for potential customers, the results are decidedly mixed.

Behaviour economics highlights methods foe driving desired consumers behaviours that are consistently effective at a tiny fraction of the cost. Many of the important lessons of behaviour eco stems from re-construal of how. Consumers approach choice  “one of the most broadest and most important insights into consumers choice is the fact that people often think about things  vary intuitively rather than deliberately says “No than Novemsky , a faculty fellow in the center for customer insight”

Behaviour economics also reveals a range of factors that how to influence consumers decisions. The challenges for marketers is thus not simply product improvements through  Research and Development , but managing and influences customers beliefs’ including understanding and activating the relevant beliefs at the right moments

While the work of behavioural economics continues to reveal that consumer decisions are more complicated than previously (inner ) thoughts, it also uncovers now realms of opportunity for marketers.