Behavioural economics meets the market place
Professor Gordon Foxall
Cardiff Business School, Cardiff University
On Tuesday 9th May 2017 Professor Gordon Foxall from Cardiff Business School gave a talk on Behavioural economics meets the market place at the National Assembly . In the talk Prof Foxall noted that some of us already have an understanding of behavioural economics and for others it will be a new subject. Over recent years from the areas of health provision to the food and drinks market it has become a key economic tool. There are several versions of behavioural economics but a particularly successful approach, which were the subject of his talk It drew on both economics and psychology to elucidate the everyday behaviours of consumers in marketing-orientated economies.
The talk by Prof Foxall, one of the world’s leading experts in this field, further outlined the nature of this approach and applies it, first, to situations in which consumers are faced with a highly tempting immediately-available good that is less than they could obtain if they were willing to wait. Much consumer choice is of this kind, leading to purchasing on credit terms, spoiling the environment, compulsive shopping, and in the most extreme cases addiction.
Prof Foxall went on to explore the fact that the second area of application is to understand what it is that consumers actually purchase which is discussed by reference to a model of consumer choice based more broadly on behavioural economics and the empirical research that it has generated. One outcome of this research is that we can now understand better why consumers are willing to choose a smaller-but-sooner reward than a larger-but-later one.
The pictures show Prof Foxall with David Melding AM
Image ©Copyright John Henderson | Flickr®