Behavioral economics is a totally different concept from all the other aspects and Fields of Economics. The behavioral economics is a study of the different behaviors of many consumers as well as customers and a process to examine their thought process. In the behavioral economics the people or employees who are associated with the company or an organization studies about the different thought processes of their consumers and try to find out different and more innovative ways through which a company or an organization can get better sales of their products as well as commodities.
There are a number of companies which provide different offers as well as deals for the customers so that they can attract more consumers and users towards their product. This is one kind of a way through which the behavioral economics can be attained by a number of companies and organizations.
Many companies study the various emotional aspects along with the types of psychological influences which can force a person to change their decision of buying a particular product. One of the greatest examples of behavioral economics can be seen in the television advertisements where a lot of products are advertised. Companies connect the product with the emotions and feelings of individuals. These products attract the attention of many users and such advertisements make a great impact on the mind of the users who are especially more emotional than other people.
In the behavioral economics, the employees of a company focus a lot on the psychological aspects which can make a person change his mind. Basically, the behavioral economics is a game of understanding the emotions and psychological aspects of millions of users and use those aspects for the benefit of a company or an organization. Many customers have the
tendency to think that a product which is cheaper is of low quality and products which have higher prices are of high quality but in reality, it is not always true. Many times a product which is cheap in price has better services and quality as compared to a product which is of a high price. So like all these, as well as psychological behaviors of consumers a company or an organization, can manufacture products and advertise about those products in such a way that it can hit the psychological and emotional aspects of users. That, somehow make the users think that they are buying the right product and the company will get more benefits and the revenue will be much better as the sales will go up.
In the behavioral economics, there are certain theories and principles which are required to understand so that a company can approach these theories to get better sales and revenues.
There are also some principles of behavioral Economics which are helpful to understand the concept in a proper fashion.
These principles don’t only allow understanding the concept of behavioral economics in a better way but they are also very helpful in doing a better business and sales to the marketers as well as business persons. For the marketers, it is significantly vital to know about these principles. Many times, consumers are attracted towards different types of offers and deals which creates an illusion that a particular store or a company is giving away free products. Because of this reason many people prefer to visit such stores and supermarkets which offer better product offers and deals rather than going to such places where did you not get many offers. It is necessary to make the consumers understand that they are getting big offs and saving money by shopping for a particular product or a number of products from a particular marketer. Apart from all the deals, there is also a prominent requirement of better alternatives that should be provided to the consumers so that they can choose the products according to their preferences and needs. Customers choose the products according to their preferences and needs. They evaluate a lot and so the deals should be in such a way that it cannot affect the value of a product In the eyes of consumers. The hardest thing a customer can do is to make the decision of which product is better and why. There are a number of products available in the market and when a customer goes out for any purchase he has to spend money and nobody wants to spend their money and something which is useless and not of a better quality. So the process of decision making is the hardest for many consumers. The consumer is buying any product that should be proper information about the attributes of a product so that a customer can know what he is purchasing. When it comes to the behavioral economics there are a few applications that can be useful to the customers as well as the companies in order to get more sales of the products and receive better revenues. What is more important for a company is to gain the trust of a customer with the help of behavioral economics and once a customer has trusted a product of a company then there is a higher chance that one customer can bring many other customers and a chain of valuable consumers is formed. It is very helpful for a company because once a product has gained the trust of consumers then there is a higher chance that the product which a particular consumer is using will be used for many more years by that customer. One of the greatest examples are about the baby soaps which many moms use for their kids and this goes on for generations progressively. The impact of behavioral economics is great on the consumers and if used properly it will be very beneficial for any company. Behavioral economics gives are plenty of reasons which are the proof that it is a lot different than the traditional or conventional economics and better than the traditional aspects of the economics for getting better sales.