Simply put, behavioral economics (BE) looks at why we do or don’t do something, choose or don’t choose something, decide or don’t decide at all. It shows us how our thoughts and emotions may affect our decision-making, which means our choices may be irrational, much to the surprise of classic economists.
Classic economists says humans analyze all available information before making decision, much like Spock, but BE shows us we are much more like Homer.
Why is this important to know? BE can help predict this irrationality.
Not all product offerings work, and not every process is productive. Sometimes having too many options freeze decisions, and other times they steer behaviors in the wrong direction. What others are doing influence us, as well as past offers, promotions and what is available when. We place more weight on unpleasant events than its equivalent pleasant event. And no study has shown people prefer a supposedly free incentive to an equivalent price discount.
So many factors, so little time.
Understanding Behavioral Economics: the truth about decision-making workshop will connect you with insights to adjust your messaging, pricing, and customer experience environment to be more effective. Get practical and actionable tools, tips and techniques you can apply to your organization for better business results.
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