Behavioral Economics: A New Business Framework?

Luke Perry, Alex Johnston

THE OBJECTIVES AND STRUCTURE OF THIS PAPER

This paper is intended as an introduction to contemporary Behavioural Economics for market researchers. The paper begins with a brief outline of the impact that this emerging paradigm has had in the United Kingdom across research, advertising and marketing, including an explanation of the factors that are driving its current adoption. The paper then outlines the conceptual framework for Behavioural Economics thinking. Having outlined a core framework, we then discuss some of the challenges that it poses to the practice of market research, and the wider implications that this thinking has at an industry level. The paper then suggests a range of approaches for using research to overcome some of the challenges presented by the framework, enabling researchers to access this strand of behavioural insight, finishing with some concluding thoughts on how researchers should respond to Behavioural Economics going forward; and how we can effectively translate academic and public sector thinking into commercial practicalities.