Overview
Behavioral economics in marketing combines insights from psychology and economics to understand consumer behavior. It emphasizes how psychological factors, such as biases and heuristics, influence decision-making processes. Marketers can leverage these insights to design strategies that effectively ...
Key Terms
Example: Placing healthy foods at eye level in a store.
Example: A high initial price makes a discount seem more appealing.
Example: Consumers are more upset about losing $10 than happy about gaining $10.
Example: Seeing many people buy a product can encourage others to buy it too.
Example: Confirmation bias leads people to favor information that confirms their beliefs.
Example: Limited-time offers create urgency to purchase.
Related Topics
Consumer Psychology
Study of how thoughts, beliefs, and feelings influence consumer behavior.
intermediateMarketing Strategies
Techniques and tactics used to promote products and services effectively.
intermediateDecision Making
Understanding how individuals make choices and the factors that influence them.
intermediateKey Concepts
NudgingAnchoringLoss AversionSocial Proof