User:LGreg/sandbox/Approaches to Knowledge (LG seminar)/Group1/Power/Power of the Unconscious within Behavioral Economics

Behavioral economics

While decision making is unconsciously affected by emotions or external factors, we can perceive humans as unpredictable actors as opposed to classic economists assumption that humans are rational decision makers. Behavioural economists tend to anticipate and understand irrational decisions by dissecting the unconscious decision making process through a psychological lens, the aim being to understand how a consumer’s brain proceeds in order to adjust marketing strategies.

Unconscious consumption patterns

Accordingly, several patterns have been highlighted by behavioral economists through experiments. As per to David Brooks in The Social Animal, and Dan Ariely, individuals proceed to a choice architecture before taking decisions, relying on few principles. One of these principles notably illustrates that we make choices based on comparison. He also stated that ‘Every decision gets framed within a certain linguistic context’. Indeed, if the formula ‘Limited Units’ appears next to a product, the consumer is likely to buy more units than he would normally. Likewise, the environment in which we consume (odours, music...) is also highly influential. Therefore, depending on our unconscious emotional state, external factors can seriously influence if not control economic choices.

Overall, the concept of unconsciousness provides economists and market researchers with a new perspective to understand consumer behaviors, empowering them to better coordinate the market and the economy.