The social science known as “behavioral economics” shows us that how a product is presented to consumers is often the most powerful driver in a purchase decision. ... Retailers can use behavioral economics to accurately predict customer behavior, which allows them to improve marketing effectiveness.
What is Retailers Behavioral Economics?
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It’s long been a popular opinion among retailers that there’s little to no logic behind the way shoppers make purchasing decisions; they believed that a customer’s choice to buy a certain product is often, simply, irrational.
However, over time, retailers have found ways to affect shoppers’ decision processes and use it to their own advantage, all while unaware of the fact they are applying the principles of behavioral economics.
Behavioral Economics helps understand how small changes in the way the product is offered can alter consumer behavior. Once you understand what drives people to jump at a certain offer, you can use that knowledge to maximize your sales and profits.