We would like to inform you that this was written by attending 10 sessions for two days at DMS (Digital Marketing Summit) 2023.
The main topic in this DMS was, of course, stories about various AI including generative AI, namely ChatGPT. However, even in the overflowing AI sessions. I would like to introduce the most fun session while waking up to human nature.
What is Behavioral Economics?
Behavioral economics is a study that combines psychology Czech Republic Email List and economics. It is a discipline that studies economic choices of people. From the perspective of human psychology, and studies limited rationality and irrational choices.
Humans think that they are rational, but in fact. Because humans have limited rationality, various psychological factors act on human economic choices, and sometimes make irrational choices. It can be said that these irrational choices actually affect the course of the market and economy.
Behavioral Economics Research Methodology
We collect data through experiments, surveys, in-depth interviews, and observations, and analyze the collected data using statistical techniques to verify hypotheses. Recently, big data analysis is performed by collecting large amounts of customer behavior data from the web or apps.
Why is behavioral economics important?
The applicable area is gradually increasing. Behavioral economics can also be found in economics, finance, marketing, and political science. So let’s find out what behavioral economics are in the marketing part that we need to pay attention to the most.
1) sunk cost
Costs that have already been incurred in the past and cannot be CW Leads recovered, and which should be ignored when making practical economic choices. But we humans should ignore the past as the past, but we can’t.
Confidence
It is the psychology of acting on beliefs in oneself or confidence in one’s luck, rather than interpreting information rationally. This leads to the overconfidence bias, in which you think you know a lot, and the illusion of control bias, in which you think you can control the market.