A well-known and loved brand is one of the most valuable assets a company owns. Behavioural branding involves in creating the company’s own logo, slogan and the graphic that will help people identify the company’s products or services while browsing shops or while surfing the internet. The foundation for building a successful brand is to define the business targeted audience and focusing on tailoring a message that meets their specific needs.
Classical pricing theories assume that customers behave rationally and have access to complete information regarding cost-benefit ratio. According to those theoretical principles, the pain of payment should be identical for every penny spend (customers want to obtain as much for their money as possible). Those theories are based on the hypothesis that customers act rationally. However, in real life, many factors influence the way consumers value money and how much pain they feel upon spending it.
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.