Behavioral economics as a tool of marketing activity
Journal Title: Формування ринкових відносин в Україні. Збірник наукових праць - Year 2016, Vol 4, Issue 4
Abstract
This article is dedicated to the questions of behavioral economics’ formation as a new direction of economic research in marketing. In order to form the maximum effective marketing strategy, the peculiarities of irrational behavior of the market agents were examined in addition to the neoclassical economic theory. The concept of `behavioral economics` was amplified. The main organization tasks were systematically arranged to form firm`s behavior in conditions of limited rationality, that will help to provide making optimal strategic decisions. The hypothesis that behavioral economics is formed under the influence of the personal and psychological peculiarities of the main market subjects, such as: consumers, firm’s work–force, suppliers, middlemen, competitors was proved. The choice of the behavioral model – is a reproduction of such actions, which are used by the majority of people or roups of people under particular circumstances. The behavior of the main subjects of behavioral economics, that form the model of the firm’s economical behavior at the macro–level, was explored. It was determined that the choice of the behavior’s model depends on the commodity’s importance to the buyer. It was also determined that the behavior of the consumer is formed under the influence of three main components: iscovering (consumers connect adopted information with their own knowledge); emotions (consumers determine the attitude owards the commodity using their own valuation system); and the need of action. It was also determined that to form a behavioral model a consumer has to go through a particular algorithm of actions: get information about the change in the system of price’s forming; realize information and establish connection with its own knowledge; determine the attitude towards the commodity using its own valuation system; considering the value of the commodity either to increase firm’s performance effectiveness or review the components that determine the behavior model of the consumer. Alcohol firm’s case study showed the influence of the consumer’s behavioral model on their performance effectiveness. Model connections in forming of the consumers’ behavioral impact were determined by means of mathematical programming methods. It was determined that distinguishing priority conditions of the functioning at the different stages of the firm’s development is an important factor during forming the behavioral economics at the firm.
Authors and Affiliations
D. M. RADCHENKO
Keywords
Related Articles
- EP ID EP272834
- DOI -
- Views 125
- Downloads 0
Regional policy development spa facilities
The article singled out the concept of "health resort region." These features of the functioning of spa business. Assessment methodology outlined spa building in the regions. The analysis of trends of the spa facilities...
Structural transformations of Ukraine's GDP: analysis and prospects
The article analyzes trends in the structural transformations of the national economy, researches the contribution of industries in the creation of gross value added, studies the features of Ukraine's distribution, concl...
Transfer pricing as a tool for managing the performance of banking business
The article analyzes the interrelationships in the organizational structure of the bank's management objects, taking into account transfer pricing, presents the distribution of banking risks by types of activity with a v...
The effectiveness of the system of monitoring the creation of value added for accounting and analytical information
The subject of the research is the effectiveness of the use of accounting and analytical information for monitoring the economic potential of enterprises. The purpose of the study is proposed approaches to assessing the...
National models of social and economic development as a result of economic policy
The article analyzes and summarizes the main theoretical concepts of economic policy - Keynesian, monetarist, neo-liberal, neo-classical, institutional. It is proved that the national model of socio-economic development...