Behavioral economics is the study of how people actually make decisions, as opposed to the traditional economic model which assumes that people are rational and always make the best possible decisions. Behavioral economics considers the role of emotions, cognitive biases, and other factors in decision-making. This field of economics has grown in popularity in recent years as a way to help explain some of the seemingly irrational behavior that we see in the real world.
Applying behavioral economics to marketing can help marketers better understand why consumers make the choices they do, and how to influence those choices. For example, by understanding how emotions affect decision-making, marketers can create ads that target those emotions. By understanding cognitive biases, marketers can avoid creating marketing materials that contain false or misleading information.
Behavioral economics is a powerful tool that can help marketing professionals create more effective campaigns and understand the complex choices that consumers make.