“Carrots and sticks” are passé. Enter the “Nudge” – a subtle push that aims to influence a person’s behaviour without being conspicuous. Instead of forbidding choices, or using overt incentives, the Nudge uses indirect suggestions to impact people’s behaviour, thus facilitating certain choices over alternative ones.
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It is essential to understand how people make decisions while buying a particular product or service or why they buy, this being the secret ingredient for success, especially when it comes to e-commerce business. The fundamental reasoning behind buying is to bring pleasure or migrate further from pain. So, when you are selling a product or offering a service, try to understand why your customer will buy what you are selling. Insights from Behavioural Economics can be one turning point solution to help you read your customers’ mind and serve them appropriately.
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Clothes or toys, mobile phones or investment plans, offline or online, retailers are swamping us with choices, far more than you and I could conceivably peruse. While earlier economic theory, as well as conventional wisdom, would suggest that we would always be better off with more options ( we could just ignore the ones we didn’t like), empirical evidence shows that excessive choice, be it in picking a pair of jeans or choosing your life partner may not always be such a good thing.
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Company culture is made up of shared beliefs and values which are established by the organization’s leaders and then communicated and embedded through various methods, ultimately shaping employee perceptions, behaviours and understanding. Company culture it’s the element that differentiates a business from its competitors. Usually, companies with a strong culture tend to develop superior results as compared to the companies with weaker cultures. When a culture is strong, it leads to motivated employees and high performing managers.
Behavioural economics has many practical applications for building, creating and modelling company culture. Here are six essential tips.
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Behavioural economics can help you understand what are the reasons that motivate consumers to stick with a brand.
Insights from behavioural research are showing that customers like to buy what they are used to when people have enjoyed a brand or a taste for years; they tend to inflate its value. When calculating the pros and cons of purchasing a product or a service, emotional biases often cloud the ability to make rational choices (customers are influenced by their own personality and the feelings of attachment or obligation that they may have towards a brand). In fact, we can actually state that cognitive biases often prevent people from acting in their own best interest. Read More