Behavioral Economics: The Emotions Behind Decision-Making

Why do people do what they do? The question is as old as time itself. We might find comfort in assuming that most people, most of the time, make rational decisions based on facts. However, mankind has a heart and a brain. Because of that, our decisions are often influenced by how we feel. In order for small business owners and nonprofits to maximize their digital marketing efforts, we must begin with . . .

Behavioral Economics: a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.

Behavioral Economics vs Intent Marketing

A few weeks ago, I talked about intent marketing and the importance of social listening. So how is the study and practice of behavioral economics different or helpful in comparison? As long as I know someone showed interest by giving me their email address for an e-guide, I should be able to message them with additional content, pitch a product, and send them newsletters right? Not exactly. However, delving into the realm of behavioral economics can help us think through why a consumer made a decision, and to develop strategies to inform their decision making.

I’ll be spending the next few weeks studying the different aspects of behavioral economics and will report on how they can inform digital marketing strategies, from social media to email and everything in between! Check out the video below for a quick primer. I’m a big fan of Crash Course, especially since they have a studio right here in Indianapolis.