Behavioral Economy Theory 2 edition

<p>What does organizational behavioral economic strategy mean ? Behavioural economics aids marketing strategies by understanding how consumer decisions can be influenced. Behavioural economics is about understanding not manipulating consumers. Marketers can use these biases to craft ethical and informative campaigns that resonate with the target audience. The four elements of organizational behavior are people structure technology and the external environment. By understanding how these elements interact with one another improvements can be made. So these four elements can help organizations how to implement behavioral economic strategy.. I shall explain as below:</p><p>Behavioral economics combines elements of economics and psychology to understand how and why people behave the way they do in the real world. It differs from neoclassical economics which assumes that most people have well-defined preferences and make well-informed self-interested decisions based on those preferences. Behavioral economy strategy can be applied to consumers or organizations both.</p><p>Organizations are also heavily influenced by economic factors. A market crash or a recession will directly impact the sales of an organization. When people are no longer able to afford a product or choose to spend their money elsewhere companies are directly impacted. In this book I explain how organizations can apply behavioral economy to implement strategy.</p>