Behavioral Economics For Market Insights Professionals

The field of behavioral economics is gaining increased attention in the marketing world. Unlike standard economic theory, which assumes that consumers are informed and make rational decisions to optimize their position, the basic premise of behavioral economics is that the decisions that consumers make aren't always rational and don't always improve their situation. Even worse, consumers don't understand and can't really explain why they make the choices they do. This is why behavioral economics has caught the attention of market insights professionals: If consumers can't explain the reasons for their behavior, how can market insights professionals extract what drives this behavior (and subsequent purchases) from their research? This report highlights how understanding behavioral economics can benefit market insights professionals, reveals the research biases that behavioral economics uncovers, and gives some tips on how to minimize these biases.