ChapterOneConsumption behavioral economy concept and marketing strategy relationship`Can firms apply behavioral economy concept to attempt to implement the suitable marketing strategy to predict consumer behaviors? E.g. marketing communication, marketing research, cost forecast etc. different strategies in order to achieve to spend the least expenses and earn the highest profit aim. Behavioral economic method can help any product manufacturers or service providers to find what is ( are ) the most suitable communication channels to persuade more consumers make final decisions to buy the firm's any products or consume the service provider's services more persuasively. In general, individual consumer decision making and utility feeling is based on whether the firm how to communicate to let them to feel what the unique characteristics of its products or services are different to compare other similar brands of products or services. So, effective communication strategy or communication method is very important to influence any individual consumer to choose to attempt to buy the brand of any products or consume the service provider's any services when the consumer knows the brand in market in first time beginning. So, brand familiarity factor is important to influence how consumers build confidence to make decision making to choose to buy the brand's any products or consume the service provider's any services when the kind of product or service has many competitors are existing in the market to let them to choose.Utility is the enjoyment or satisfaction feeling to let consumer individual to receive from consuming products or services. So, when the consumer chooses to buy the brand's products or consume the service provider's any services. He/she won't feel it can bring more or less utility when he/she chooses to buy its products or consume its services in first time beginning. So, if the firm can predict what consumers' general behavioral economic behaviors to influence them to choose to the kind of products or consume the kind of services . Then, it can have more confidence to judge and implement whether it ought choose to use which kind of communication channel which can persuade or attract many consumers to attempt to buy its products or consume its services easily. In especial, for the consumers had not ever bought the brand of products or they had not ever consumed the service provider's services before.How to predict consumers; behaviors? For budget strategy example, it is the budget constraint and it is the amount of general consumers' income have available to spend on the kind of products and services. To maximize general consumer individual enjoyment. Consumers should make sure that they spend their income. So, that the last dollar spent on each product lives them the same marginal utility. The income effect is the change in the quantity demanded of a product that results from the effect is a change in the price on consumer purchasing power. The substitution effect is the change in the quantity demanded of a product that results from a change in price making the product or service more or less expensive relating to other products or services, holding constant the effect of the price change on consumer purchasing power.Therefore, it seems that consumers usually calculate he/she needs to allocate how much income to make budget to spend how much expenditure to buy how much number to the kind of product or consume how many time(s) to the kind of service to satisfy his /her utility needs. This is general consumer individual spending budget psychological attitude or emotion to influence that he/she needs to make choice whether he/she ought spend how much expenditure to buy the kind of product to use or consume the kind of service.

This book will bring my readers to enter behavioral economic business world. I shall ask readers to attempt to answer these interesting consumer psychological questions: They include s below: Do consumers prefer to acieve the utility maximization aim prior to choose to compare any products or services to make final consumption decisions? If utility maximization must not the prior to main reason or factor to influence consumers to choose any products to buy or service to consume, what will be the other factors prior influence whose decision making? Can any countries implement policies to apply behavioral economic concept to threaten any monoplistic product sellers ( manufacturers) or service providers to control to raise service fee or sale price effectively? Do customers need to weigh any product or service benefit and cost prior to decide to choose to buy any kinds of products or consume any kinds of services? If it is not absolute that weighing between benefit and cost activity is not general consumer individual choice activity. What other factors will influence them to choose to do other activities to decide whether he/she ought choose to buy the product or consume the service. Do general consumers prefer to choose to consume from the store which can provide many brands of product choices in prior more than the another store which can not provide many similar brands of product choices? Can consumer individual income evaluation high or low level factor, which influence the consumer chooses to buy the product number of consume the service time whether it is more or less?In my this book, I shall apply behavioral economic principle to attempt to explain how consumers will usually make final consumption decision before their choices. Finally, I hope that any manufacturers or sellers or service providers can apply behavioral eocnomic principle to attempt to predict consumer behaviors more accurate after you read my this book.

ChapterThreeHow to Apply behavioral economy method to assist government to implement policy Can behavioral economic method be applied to different countries' governments to assist them to implement policies to threaten product sellers or service providers to make monopoly price sale behaviors any time easily? This is one fun question to concern whether governments can predict when any manufacturers or service providers who make sale price or service price in order to protect consumers' shopping benefit from any product sellers or service providers rise price monopoly in unfair sale behaviors or sale transactions in markets.I shall indicate some product sale cases to explain whether behavioral economy method can be applied to threaten sellers' unfair sale behaviours in business environment as below: For considering policy toward smorking sellers' cigarettes sale behaviours that is arguably not much different from the behaviour of pedestrians from foreign countries in London big city, UK country cexample. In contrast to a preference for some people do get pleasure from the smoking decision to enjoy the short term benefit and accept the long term risk is irrational for London city, UK smokers. However, in the United States and no doubt anymore, there is likely a consus that starting to smoke is irrational and that it would be desirable to prevent anyone from starting to smoke and to help all current smokers break the smoking habit. Therefore, there is no consensus among either the public of among professional economists, including behavioral economists that smoking should be banned to implement policy from government easily . Because smoking will be some current smokers' habits, e.g. they need to smoke at least one tobacco per day habitually. Although, tobacco sale price is possible high. But, they can't choose to smoke less, due to habit causes, they will feel smoking seems to be eating rice every day. But, it is possible if the tobacco brand seller rises tobacco price sightly. It will influence the current smokers choose to buy another brand tobacco to smoke in possible. So, habitual smokers will be harder to control to reduce smoke tobacco or cigarette number.Indeed, ban on tobacco products to sell to public, it is different to implement. it is similar to another similar alcohol products under prohibition. It is also different to ban, due to the alcohol habitual drinkers can not control to drink less alcohol. They will be possible to reduce to buy the brand of alcohol to drink, if the brand of alcohol seller rises sale price high suddenly. They will not choose not to buy any more alcohol to drink. They will only choose to buy another brand of alcohol to drink to replace the rising price of alcohol brand. Hence, in tobacco and alcohol raising sale price prohibition policy market, every government is different to ban their number to sell to public easily. Due to habits have caused the current tobacco smokers or alcohol drinkers their essential soft drink or smoking tool to satisfy their enjoyable smoking or drinking feeling for physical need.As with alcohol under prohibition, a ban on smoking would likely result in a black market for cigarettes. Supply in that market would be provided by criminal organizations attractively. Due to governments are different to ban cigarettes or tobaccos and alcohol sale number to be control to reduce to let alcohol or smoking consumers to buy. Because these both kinds of consumers who won't reduce to buy any brands of tobaccos or alcohols to drink or smoke easily, even they raise their price sightly. It is based on their habitual smoking or drink alcohol behaviours than often.

In fact, marketing concept is based on supply must exceed demand. Therefore, producers or service providers need to first understand what consumers wanted, then produce these products or provide these services, then convince consumers to purchase those products or consume the services. Target marketing and marketing segmentation strategy became the new tools to increase company profitability. Therefore, if the firm understood what consumers real needs are and why they need to use the product or consume the service to enjoy. Then, it may have more chance to influence consumers to choose to buy its product or consume its service in consumer individual decision making choice process. For movie (film) publishing industry example, if the movie publisher can understand how and why some audiences do not like to watch horrify movie. The reasons may include: feeling general horrify movies have no attractive story content, or feeling general horrify actors can not perform attractively or actively to reflect the roles' actual behaviors in many horrify movies, or feeling general horrify movies can not bring very horrified images to let them to feel more exciting and horrifying enjoyable feeling etc. different factors. When the movie publisher can understand whether what factor(s) is (are ), it has possible one factor or many factors which has (have ) the most influential psychological consequence to cause general audiences who do not life to choose horrify movies to watch in cinemas preferably. Then , the movie publishers can find what is ( are ) the most influential factor(s) to improve in order to avoid these any one weakness(es) to bring negative viable emotion influence when the old horrify movie audiences choose to watch the movie publishers' another horrify movie in cinemas again.Therefore, in movie industry, film publishers need to understand whether what factor(s) cause(s) audiences to bring negative emotion influence after they watch the different kinds of movies in cinemas. The kinds of movies include: life experience kind of movie, family or friendly relationship kind of movies, actual history kind of movies, horrified kind of movies, scientific story kind of movies, romantic kind of movies etc. different kinds of movies. However, when, movie publishers can understand why general audiences do not like to watch the kind of movie. What are (is) the main factor(s) to bring their negative emotion viable feeling. Then, the movie publishers can improve the weakness(es) to be raise competitive power to bring positive emotion viable feeling to let the different kinds of movie audiences to have more viable satisfaction behavioral economic benefit again. Therefore, film ( movie) positive or negative emotion or feeling or negative viable feeling will be movie audience individual economic or loss value. Every movie audience will compare the movie ticket price and the positive or negative emotion or feeling value or satisfactory or unsatisfactory viable value to bring either economic benefit ( positive emotion or viable attractive feeling) or loss ( negative emotion or viable unattractive feeling) after they had watch any kinds of movies in cinemas. So, movie industry is one good example of audience individual viable enjoyable value, which means a loss or economic benefit value in behavioral economic marketing strategy view point.

How can you double the sales of an everyday product without changing either its packaging or placement in store? How can you increase the effectiveness of a public health campaign or get the general population to reduce their energy consumption without spending a dime? Nothing could be simpler. All it takes is that you activate the right lever. In other words, that you give your target group a little 'nudge', which causes major changes in their behavior! Whether you are an entrepreneur, a marketer, an advertising executive, a political decision maker, or the head of an organization, one thing is for certain: you can change your target group’s habits via seemingly minor interventions. To do this, you only need understanding the origins of the decision-making process and come up with a suitable strategy. Drawing on studies on behavioral economics which he applies successfully to both private enterprise and public administration, Éric Singler puts forward a complete, effective methodology – a genuine ‘action plan’ for coming up with high-yield nudges. Using case studies to identify the key factors for success, Nudge Marketing explains how to produce significant changes in behavior as a means to improve the return on investment for any marketing strategy. How can you double the sales of an everyday product without changing either its packaging or placement in store? How can you increase the effectiveness of a public health campaign or get the general population to reduce their energy consumption without spending a dime? Nothing could be simpler. All it takes is that you activate the right lever. In other words, that you give your target group a little ‘nudge’, which causes major changes in their behavior! Whether you are an entrepreneur, a marketer, an advertising executive, a political decision maker, or the head of an organization, one thing is for certain: you can change your target group’s habits via seemingly minor interventions. To do this, you only need understanding the origins of the decision-making process and come up with a suitable strategy. Drawing on studies on behavioral economics which he applies successfully to both private enterprise and public administration, Éric Singler puts forward a complete, effective methodology – a genuine ‘action plan’ for coming up with high-yield nudges. Using case studies to identify the key factors for success, Nudge Marketing explains how to produce significant changes in behavior as a means to improve...

What are our social customer and economic problems usually we will encounter in our lives. Can economists apply any economic theories to attempt to solve any economic or customer problems absolutely? Do economists apply any economic theories to solve any problems in any economic environment or situations or they need find the suitable economic theories to solve the suitable environment of economic or customer problems? In my this book final chapter, I shall attempt to indicate some customer problems in electronic commerce strategy aspect and I shall explain how to apply economic theories to solve online consumers buying problem. I hope my readers can learn how and why economic theories can be the best strategy to solve e-commerce customer problems in e-commerce industry. Behavioural economics The most important trend in recent decades in economics is the greater emphasis placed on aspects of behavioural economics, which uses many insights from related fields such as psychology. *Disputes rational choice theory. The essential element of behavioural economics is that it argues individual agents are often not rational and often do not seek to maximise utility. *Behavioural economics examines how agents can be influenced by biases, and make decisions not predicted by neo-classical economic theory. Behavioural economics can explain the irrational exuberance of booms and busts. Hence, in different firms behavioral view, this sensitivity of outcomes to process can have important consequences for analysis at the level of market and economy, which assumes that consumer individual typically makes choices in their own best interest, " were best interest" is something that not incorporating into their calculations, the true costs and benefits of their choices. Hence, behavioral economy theory can help product sellers to predict consumer individual choice , attitude in order to find what the important factors influence they choose to buy the seller's products in preference. Also, behavioral economic theory is an analytical predictions, how intelligent individuals actually behave. This approach to choice behavior does not assume that individuals are in any way irrational , even through such behavior is expected to deviate substantively. Hence, the behavioral economic theory assumes humans are rational and maximum their individual self interest. In consumption view, in general , consumers choose to buy any products in preference, they will evaluate whether the product can bring the maximum economic or useful benefit to them in order to make the final purchase in our society. Such as organic food choice case, food consumers' choices , where people's may come from direct influence of other people's behavior and social norms on our behaviors. Then, theory assumes we independently know what we want and that our preferences are fixed. So, this standard theory is very good at explaining short -term decision-making. Suc as green vegatables and choose beans as they are on special offer, but can not explain longer-term changes in preferences. I now only choose organic foods. So, behavioral economy theory can predict short term consumers behavioral choice to decide what factors influence their choices change, but it can not predict long-term consumers behavioral choice to decide what factors influence their choices change, because it has much unpredictable factors are difficult to estimate , when they will influence now consumers behavioral change in our society.

A practical guide to the irrational consumer. Behavioral economics has been on our radar for a while, but time-crunched marketers can't sift through mountains of academic research on the human mind in hopes of uncovering insights that will be helpful today. In Science, Not Sorcery: Behavioral Economics for Marketers, Sullivan uses examples from pop culture, academic research, and the marketing world to elucidate the many irrationalities of consumer behavior. She takes a pragmatic approach to unpacking the science and offers clear, practical marketing advice like the following. Personal narratives are more relevant to purchase decisions than objective reality. You probably don't need to respond to negativity on social media. Luxury brands shouldn't claim their products will bring happiness. It's usually better to focus on market share, not loyalty. Traditional brainstorming is counterproductive. Framing effects and context influence decisions more than personality. Marketing plans and New Year's resolutions fail for the same reasons. Supercharge your marketing strategies with insights from behavioral economics and let your clients think you're a magician.

Companies of all kinds have fallen into some of the most fundamental of traps when it comes to consumer marketing; in assuming that the motivation that drives their customers is entirely rational. Enrico Trevisan's The Irrational Consumer builds on the ground breaking works on behavioural economics of authors such as Daniel Kahneman and Richard Thaler in order to explain the fundamental drivers of customer decisions and how to incorporate these into your business strategy. Learn how consumers respond to different offer architectures and discounts; why they sometimes struggle to see the wood for the trees in a world of ever-increasing options; what are the rules of thumb they develop for making sense of value. Behavioural economics offers organizations perspectives for engaging with customers, whose views on what to buy are strongly driven by contextual factors, such as the framework and the dynamics of choices. Enrico Trevisan's The Irrational Consumer is your 'must-have' primer to this world.

Winner of the 2016 Berry - AMA Book Prize for Best Book in Marketing from the American Marketing Association! Named Marketing Book of the Year for 2016 by Marketing & Sales Books! Reshape Consumer Behavior by Making Your Brand the Instinctive, Intuitive, Easy Choice • Discover powerful new ways to simplify and guide consumer decisions • Gain actionable insights into social influence, how people plan, and how they interpret the past • Leverage surprising advances in neuroscience, evolutionary biology, and the behavioral and social sciences Whatever your marketing or behavioral objective, you’ll be far more successful if you know how humans choose. Human intuitions and cognitive mechanisms have evolved over millions of years, but only now are marketers beginning to understand their impact on people’s decisions. The Business of Choice helps you apply new scientific insights to make your brand or target behavior the easiest, most instinctive choice. Matthew Willcox integrates the latest research advances with his own extensive enterprise marketing experience at FCB’s Institute of Decision Making. Willcox explains why we humans often seem so irrational, how marketers can leverage the same evolutionary factors that helped humans prosper as a species, how to make decisions simpler for your consumers, and how to make them feel good about their choices, so they keep coming back for more!

Winner of the Nobel Prize in Economics Get ready to change the way you think about economics. Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans—predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth—and change the way we think about economics, ourselves, and our world. Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments. Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber. Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking, Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining. Shortlisted for the Financial Times & McKinsey Business Book of the Year Award