In most organizations, HR professionals and reporting managers and supervisors have no idea about the application of behavioral economics in their work. But that is not something to worry about as it can be rectified by making these professionals aware.
All organizations are keen to reduce their costs and time and maximize their profits. However, to accomplish this, organizations need to analyze data and perform market research. It is in these fields that behavioral economics can be a boon for companies. There are several areas of application of behavioral economics that companies can benefit from. Some of these are as follows:
The modern times have made market research extremely intricate along with innovative industry, which draws influences from various external disciplines with additional layers of profound understanding to the insights generated. Although few disciplines can seem quite similar, even after varied focus.
Behavioural science and behavioural economics are not only similar words but two such disciplines which often lead to confusion and misunderstandings.
“Wouldn’t economics make a lot more sense if it were based on how people actually behave, instead of how they should behave?”- Dan Ariely
We experience examples of behavioral economics that are seen in our daily lives more than we can imagine. In which ways do these principles affect us?
Couponing is an efficient and easy way to not only make your business more appealing but also attract new consumers in the face of looming competition. Experts point to the possibility that it can be a tough call for business owners, especially small brands as they won’t be making a profit from continuously providing discounted purchases. These experts also say that, on the other hand, brands that provide coupons and offers also have a competitive edge as the availability of discounts is one of the main reasons that customers will shop at your store again and again.
A lot of brands use their online resources to find out about quantitative research which can be available to businesses of any size. Researchers point out that even though brand evaluation can be done with quantitative methods, when it comes to dealing with certain concepts, it can be fundamentally flawed.