Improving the effectiveness of marketing activities of enterprises through the use of heuristics and irrational behaviour described in behavioural economics

• Main Author: Wojciech Świder
• Format: Article
• Language: English
• Published: Malopolska School of Economics in Tarnow, Poland 2020-09-01
• Series: Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie
• Subjects: behavioural economics; economic psychology; consumer psychology
• Online Access: https://zn.mwse.edu.pl/index.php/zn/article/view/695

Behavioural economics is gaining importance in the theory of economics. This can be proved by the fact that the Bank of Sweden Award Alfred Nobel in economics in 2017 was awarded to Richard Thaler, who promotes a behavioural approach to economic problems. More and more representatives of science admit that man is not homo oeconomicus rationally maximizing usefulness, but as a human being he is sometimes irrational and commits repetitive, systemic errors in the reasoning and evaluation of phenomena. The results of experiments carried out by behavioural economists can be very useful in developing, promoting and selling products. This article presents selected effects and heuristics, which are treated by behavioural economics and their use in marketing activities of enterprises. The main purpose of the work was to answer the questions: how to improve the effectiveness of the company’s marketing activities in conditions of strong competition through the use of heuristics and irrational behaviour. Some of the analyzed cases were taken from the market practice of companies, while others are new proposals that may be used in the future.