Advertising And Behavioural Economics: What Should You Know?

Advertising & Behavioural Economics: What Should You Know? 3RockAR

Advertising And Behavioural Economics: What Should You Know?

Advertising could be much more effective once you understand the connection between your customer’s behaviour and rational decision making.

 

Behavioural economics has become an important discipline for brand owners eager to understand why their consumers sometimes make irrational decisions that run counter to economic model predictions.

What exactly are they?

Back in the day, behavioural economics were referred to as scientific advertising.

In the nutshell, it’s a creative way to use data about people, and the ultimate execution of using the data takes even more creative thinking.

We have previously mentioned using emotional approach when creating your campaign.

Emotions are indeed important in advertising.

So is behaviour.

Once you understand it, you can also influence it.

Consider this:

If a company wants to sell more soap, you either make a bar that people like more (traditional economics) or display your soap at eye level—where people will see your brand first and grab it (this is what the behaviourists call ‘choice architecture’).

You can influence one’s behaviour by taking into consideration:

Personal Factor

Think about your audience’s opinions and interest. These will, of course, vary depending on age, gender and demographics.

What factor would appeal the most you each audience group?

What does the data tell you?

Psychological Factor

It’s all about attitudes – we all have one.

The ability to comprehend information, their perception of their need, their attitude, will all play a part.

Forget you and what would make you buy your product or service.

Focus on your customers.

Social Factor

In other words, influenced purchases, whether by a family member or feedback.

This is where reading your customer’s feedback will help you determine what could be improved for future.

And find out more about their behaviour.

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