HawkPartners Perspective on Behavioral Economics

How ideas from behavioral economics can improve insights generation

What is Behavioral Economics, and why is it important for Insights Professionals?

Whether trying to convince consumers to switch banks, buy a new sports drink or take their diabetes medication on time, marketers constantly seek to influence consumer behaviors. And in support of these endeavors, marketing researchers often ask people to share what they do and why they do it to understand their behavior better. These questions assume that respondents make decisions using rational thinking. This assumption, though, fails to consider that customers often don’t know or can’t explain why they decide to buy.

Behavioral economics is the discipline of interacting with the non-rational effects of psychological, cognitive, cultural, emotional, and social factors on economic (or purchase) decisions. It can help marketers understand and, in some cases, influence consumer behavior. Yet despite behavioral economics practitioners winning two Nobel Prizes, most marketers and marketing researchers are still figuring out how to incorporate it into their portfolio of methods and tactics .

Incorporating behavioral economics techniques into insight generation can help bridge the gap between what respondents say and what they truly think and make research studies more valid, comprehensive, and actionable.

How Can Behavioral Economics Improve Market Research?

Working closely with our clients and partners, HawkPartners has identified four best practices for integrating behavioral economics into market research. To learn more about each technique, download our full Behavioral Economics Toolkit.

UNPACK THE EMOTION BEHIND THE REASON
- Better understand decision making by asking questions to gauge the fast subconscious “System 1” factors behind a given decision
ADDRESS COMMON COGNITIVE BIASES
- In order to conduct more valid research, it is important to recognize common biases and understand how to address them
REIMAGINE THE USE OF RESEARCH FACILITIES
- There are several benefits to conducting research in natural environments and outside standard research facilities, such as creating a comfortable, casual environment conducive to free-flowing conversation, allowing for environmental cues to trigger certain responses, or reflecting real-life situations
EXPAND DATA COLLECTION TECHNIQUES
- One example is digital monitoring, which provides a window into consumers’ actual lives and complements what they say by showing what they actually do

Download Our Toolkit

Want to better understand emotional and non-conscious drivers of customer decision making?

DOWNLOAD OUR BEHAVIORAL ECONOMICS TOOLKIT TO:

Learn about behavioral economics, including the idea of “System 1” and “System 2” thinking developed by Daniel Kahneman in his seminal work, “Thinking, Fast and Slow.”

Understand why behavioral economics is important to marketers and insights professionals to better understand decision-making and human behavior.

Gain four best practices to infuse into your research to generate deeper insights.

Meet the Authors

Robert Duboff is CEO and founder of HawkPartners. Over his 35-year career, he has worked with clients across virtually all industries and advised senior executives on a range of strategy, brand, and marketing issues.

Annie Hanson Gilmore, with long blonde hair and in cream top, smiling outside among foliage.

Annie has led dozens of international and domestic engagements for Fortune 500 clients, predominantly in the pharmaceuticals and healthcare sectors. Her work concentrates on new product development and launch strategies.

Matt has over a decade of experience leading and conducting marketing research and consulting engagements. His particular areas of expertise include evaluating message effectiveness, assessing visual aid and educational materials, measuring and tracking brand equity, and conducting global qualitative research.