What is Behavioural Economics?

Behavioural economics approach enables to create campaigns that changes the decision making process of the customers.

These campaigns rationalise the consumption of the product or the service. 

We always rationalise our decisions, even if they are not rational!

 
 
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Nudge

The minimalist revision in an environment to develop a motivation for the desired decision making.

{example}

DO NOT MOVE YOUR MOUSE ON THIS AREA

You just avoid this area while moving your mouse.

 
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Framing

Making a decision based on the information presented to us.

{example}

Which burger is healthier?

75% fat free or 25% fat.
Both of them are the same burger, just the framing is different.
People assume that 75% fat free is a healthier option.

 
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Anchoring Effect

We have a tendency to rely too heavily on the first piece of information offered to us during the decision making process.

{example}

Summer Sales 75% // Reduced from £1000 to £250

We will think this is a great deal, because the initial price is £1000.
It is our reference point.
However, if the product is presented as £250, we may not think £250 is a good deal!
Try this on next sales!

 
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Social Norms

We constantly revise our decision making process based on what other people are doing. Even though, we don't usually agree to this fact, but we do it in some extends.

{example}

This long song playlist was downloaded by 135,000 people!
We believe this and start playing this playlist.
135,000 people can't be wrong!
This tactic is used by many brands.
Next time, think twice when you see this.

 
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Priming Effect

Studies show that the small details are recored by our mind (subconsciously) and influence our decision making process.

{example}

A car dealer smells like a hospital.
I don't think none would be pleased with this experience.

An Instagram account with poor quality images, a website that doesn't work on smartphones generates the same experience. 

 
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Scarcity Effect

We value the products that are in scarcity or limited in quantity or limited for a period of time. People are willing to pay more or act quickly for a product that is in scarcity condition.

{example}

Social media marketing with behavioural economics only for £600 until September 10th, 2017!