Behavioural theory economics

Behavioural theory economics, more commonly known as behavioural economics, is a field that uses insights from psychology and economics to understand how individuals actually behave in economic situations, as opposed to how they’re predicted to behave under traditional economic theories. Behavioural economics comes under the behavioural science category, which is growing in popularity year-on-year in the market research industry.

Key concepts of behavioural theory economics:

Cognitive biases: Systematic patterns of deviation from norm or rationality in judgement, which can affect decisions and economic outcomes.
Prospect theory: Describes how people choose between probabilistic alternatives and evaluate potential gains and losses, highlighting that losses often have a more significant impact than equivalent gains.
Nudges: Small interventions that steer people toward better decisions without restricting their freedom of choice.

Behavioural economics is key for market research and researchers because it provides a greater understanding of consumer behaviour, beyond what traditional economic models predict. It helps market researchers to identify and understand consumer biases, design effective surveys and experiments, segment markets more accurately and improve marketing strategies. By incorporating behavioural theory economics into market research, companies can gain a more holistic view of their target audience, leading to more effective product development and customer engagement practices.

Why partner with DJS Research?

We build small, director-led, teams of sector experts who are with you from brief to debrief. As an employee-owned company, every one of us is invested in delivering quality, value, and long-term impact.

From agile testing to deep-dive strategic studies, we design research to meet your specific objectives. The agility of our in-house operations team and strength of our UK-wide recruiter network enable seamless execution at scale.

Our sector-focused teams have decades of experience understanding audiences and the complexities of the markets in which our clients operate. Working collaboratively we deliver actionable insight which drives positive change.

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Contact us today to discuss your next market research project and discover how we could become a valuable extension of your team.

Contact us today to discuss your next market research project and discover how we could become a valuable extension of your team.