A behavioral economist is an expert sociologist who studies the behavior of people when buying goods and services and analyzes why they make one or another choice. According to modern science, consumer preferences are influenced not only by rational calculation, but also by mood, emotions, moral principles, social status and traditions.
How did this profession come about?
At all times, philosophers and scientists have tried to understand how a person makes a choice. In the 18th century, the economist Adam Smith, who introduced the concept of economic science, was the first to think about the reasons that lead a person to weigh the pros and cons of a decision. And in the 20th century, with the development of psychology and a society of economic abundance (when any things and goods became available to most of the world), economists began to study human behavior at the moment when he makes purchases.
At first, scientists believed that we purchase goods or services, guided exclusively by reason - for example, this thing of good quality, has such and such advantages, I will choose it if the price corresponds to this quality. However, later sociologists came to the conclusion that when it is possible to choose from millions of options, buyers most often purchase goods depending on irrational (not based on an accurate calculation) factors - their mood and emotional state, the attractiveness of packaging, "promotional" prices, or with some event or date, in a word, depending on their behavior (that is, a spontaneous manifestation of character).
How modern man makes decisions is described in detail by the psychologist and Nobel laureate in economics Daniel Kahneman in his book Think Slow ... Decide Fast. In his opinion, people, when thinking, use two approaches: fast, instinctive, emotional - and slow, thoughtful, rational. And more often than not, we act irrationally, succumbing to emotions or moods, not analyzing all possible risks or obvious benefits.
This is how a special direction in sociology arose - behavioral economics. The specialists in this field have very interesting work. On the one hand, they help the business to make their product more consistent with the “psychology of behavior” of the consumer - they predict what choice and why he will make at a certain moment and in a specific situation when buying. On the other hand, they come up with a variety of options for the user to make it easier, more comfortable and more profitable for him to make this purchase, so that the purchase will bring joy, satisfaction and benefit, even if it is not yet obvious to the person at the time of pressing the “Buy” button.
What does a behavioral economist do?
Marketing
Behavioral economics uses some psychological tricks to make purchasing easier and more attractive for the consumer. For example, a buyer is offered a refund for a purchase if the product is not liked. This way we can feel free to try something new. A sense of belonging is also very important. Some clothing brands offer the buyer to "customize" the thing for himself, independently choosing the material and color. Trial products or trial periods when using a service are also very common - after testing the offer for free, the user will feel trust in the brand and will more willingly choose its products.
Business Consulting
Another area of application for behavioral economics is business relationships and management. If you offer company personnel a certain motivation model, then work will go more efficiently. Experts study the behavior of employees of a particular company, their needs and feelings in the team and in relations with management - and develop strategies to improve efficiency.
Sociologists can also develop models of behavior in business negotiations. For a transaction to be successful, it is necessary to show not only strict rational calculations of profitability, but also describe the emotional effect this business idea will have among the company's employees and in society. The one who initiates the transaction must, on a psychological level, in addition to numbers, prove to a partner or investor that his proposal will satisfy him, including as a person, and not as an “economic unit”.
Sociological research
Experts in behavioral economics can work in private and public consulting companies and engage in a wide variety of research - polls, observations, experiments. Sociologists can often work out some kind of marketing model by imitating some kind of advertising campaigns, promotions, etc. Sometimes experts even use neurobiological methods - for example, magnetic resonance imaging, with the help of which they observe how the brain works when making financial and economic decisions.
Interface development
Mobile apps are an essential part of today's global online economy. Applications have covered all areas of our life - through them we make payments, gain knowledge, have fun, get to know each other, etc. Development of design and functionality for applications is impossible without behavioral specialists who analyze user interactions with other interfaces and offer effective solutions for new online products.