MARKETING & ADVERTISING





Marketers have understood for a while that consumers often make decisions that may be seen as irrational. Behavioral economics provides a framework for understanding how consumers actually behave, not just how we think they behave, and is based on well-grounded science and research.


An in-depth knowledge and understanding of behavioral economics can help marketers and advertisers:


  • Identify cognitive biases and heuristics involved in the customer journey

  • Gain greater insight into consumer behavior, motivations, habits, and decision-making

  • Devise strategies to remove biases or re-bias in order to responsibly drive consumer behavior

  • Create campaigns based on one or more nudges, price framing, and/or positioning

  • Design human-centered products and services

  • Better time communication efforts

  • Create more accurate surveys and questionnaires

  • Design better customer experiences

  • Embrace a culture of experimentation and data iteration

  • Simplify the user experience

  • Devise more effective pricing and discount strategies




Below is a video featuring Rory Sutherland, Head of OgilvyChange and a expert in how behavioural economics and psychology influence decision making, perception, and actions.