In simple words behavioral economics emphasizes to a greater extent on how we behave rather than what we say or think.Hence behavioral economics can adjust and manipulate a person’s behavior.
Behavioral economics gives insights to devise methodologies that are effective and cost friendly to achieve the desired consumer behavior.
This would involve understating and acting upon on the authentic beliefs at the right moments.Beliefs about a product can be the stimulating force for not only the predictions about the products but the actually experiences that consumers attain after using the product or service. The challenge for us is not only on product enhancements through research and development but also managing and influencing consumer beliefs.
Behavioral Economic thus is a vital aspect in understanding what drives in consumer actions/decisions.
About the Author