For thousands of years we have been intrigued by the human mind how it works. The question has been investigated through philosophy, psychology, sociology, biology neuroscience and religion. Although there are no shortages of hypotheses, there are few solid answers. However, the last twenty years have brought us scientific advances such as brain imaging technology, that have provided us with a fresh perspective of how the brain works.
Years of results from behavioral and psychological research has helped scientists gain a better picture of the actual inner workings of the mind – what motivates us and the science behind our rational and irrational behavior. From a marketing perspective, this type of research provides a strong tool, a tool that we can use to leverage information and guide customers to make the best decisions, while building strong relationships to them.
Behavioral economics and neuroeconomics
In 2002, Daniel Kahneman, a psychologist, shook the world when he was awarded the Nobel Prize in Economics. This merger of economics and behavioral psychology became a fact, and becomes known as behavioral economics. Even though this area of study had been around for decades, Kahneman brought a necessary level of legitimacy and attention to the field.
So what is behavioral economics? Behavioral and neuroeconomics are interdisciplinary sciences, who combine the fields of economics and behavioral psychology. They are ways to explain certain inconsistencies in economic theory, and the psychology behind the choices of the consumer.