The Behavioral Economics of Marketing Campaigns
(2019) EXTM10 20191Department of Economics
- Abstract (Swedish)
- Empirical research suggests that a more sophisticated model of consumer behavior, than the one provided by neoclassical economic theory, is needed. Behavioral economics takes into consideration that individuals are not entirely rational in the traditional sense, and that there are many ways in which their behavior deviates from what could be expected based on classic theory. Profit maximizing companies are (knowingly or unknowingly) exploiting consumers’ non-standard preferences, beliefs and ways of making decision in their marketing.
In this thesis, two research questions are investigated. The first one asks if and how behavioral biases or heuristics are currently being utilized in the marketing campaigns of a company that primarily... (More) - Empirical research suggests that a more sophisticated model of consumer behavior, than the one provided by neoclassical economic theory, is needed. Behavioral economics takes into consideration that individuals are not entirely rational in the traditional sense, and that there are many ways in which their behavior deviates from what could be expected based on classic theory. Profit maximizing companies are (knowingly or unknowingly) exploiting consumers’ non-standard preferences, beliefs and ways of making decision in their marketing.
In this thesis, two research questions are investigated. The first one asks if and how behavioral biases or heuristics are currently being utilized in the marketing campaigns of a company that primarily base their marketing campaign strategy on experience. The second asks what opportunities there are to use behavioral economics as a theoretical framework in campaign planning. The questions are being answered through a case study on Company X, which is a large, profit maximizing company in the FMCG beauty industry. At Company X, many important insights travel by word of mouth. The personnel turnover is high, which means that important knowledge risk getting lost, and the campaigns depend significantly on the group of people involved in the creation.
The case study shows that Company X is (unknowingly) utilizing several biases and heuristics, but in a non-systematic way. It also shows that there are areas where non-standard behavior can be further exploited. Based on the analysis and discussion chapters in this thesis, a campaign strategy that builds on behavioral economics is suggested for larger corporate campaigns. The strategy involves 5 core considerations when planning a campaign, that Company X always should reflect on. These are attracting attention, point of sale-material communication, theme selection, product choice and incorporation of the brand. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8982469
- author
- Fritz, Filippa LU
- supervisor
- organization
- course
- EXTM10 20191
- year
- 2019
- type
- H2 - Master's Degree (Two Years)
- subject
- language
- English
- id
- 8982469
- date added to LUP
- 2019-08-08 10:27:03
- date last changed
- 2019-08-08 10:27:03
@misc{8982469,
abstract = {{Empirical research suggests that a more sophisticated model of consumer behavior, than the one provided by neoclassical economic theory, is needed. Behavioral economics takes into consideration that individuals are not entirely rational in the traditional sense, and that there are many ways in which their behavior deviates from what could be expected based on classic theory. Profit maximizing companies are (knowingly or unknowingly) exploiting consumers’ non-standard preferences, beliefs and ways of making decision in their marketing.
In this thesis, two research questions are investigated. The first one asks if and how behavioral biases or heuristics are currently being utilized in the marketing campaigns of a company that primarily base their marketing campaign strategy on experience. The second asks what opportunities there are to use behavioral economics as a theoretical framework in campaign planning. The questions are being answered through a case study on Company X, which is a large, profit maximizing company in the FMCG beauty industry. At Company X, many important insights travel by word of mouth. The personnel turnover is high, which means that important knowledge risk getting lost, and the campaigns depend significantly on the group of people involved in the creation.
The case study shows that Company X is (unknowingly) utilizing several biases and heuristics, but in a non-systematic way. It also shows that there are areas where non-standard behavior can be further exploited. Based on the analysis and discussion chapters in this thesis, a campaign strategy that builds on behavioral economics is suggested for larger corporate campaigns. The strategy involves 5 core considerations when planning a campaign, that Company X always should reflect on. These are attracting attention, point of sale-material communication, theme selection, product choice and incorporation of the brand.}},
author = {{Fritz, Filippa}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Behavioral Economics of Marketing Campaigns}},
year = {{2019}},
}