The first thing you need to know is how to get the most out of your life, and how to get it done.

This article covers some of the key points:

Behavioral economics is an interesting branch of economics that combines traditional economics with psychology and other social disciplines, and is simply the study of how people spend their money. Some people even consider behavioral economics to be a reversal of traditional economics, which is based on the premise that "people are rational" and will always make choices that maximize their personal interests. But behavioral economics focuses precisely on irrational decision-making, so behavioral economics is very widely used in business.

Richard Thaler, winner of the 2017 Nobel Prize in Economics, has made $6 billion using the results of behavioral economics, and he has written books on behavioral economics, including Boost, and The "Wrong" Behavior. His books on behavioral economics include Boost, and "Wrong" Behavior. Thinking, Fast and Slow by Daniel Kahneman, also a Nobel Prize winner in economics, is also a representative book on behavioral economics.

The following content of the paid part of the price of a bottle of Coke, you can understand the essence of behavioral economics in 2 Nobel Prize-winning economists 3 books, additional 25 business application scenarios , the high theory, explaining the particularly simple and clear. These methods have helped a friend of mine quadruple the profit of his Japanese restaurant in 3 months, and recently opened a chain of stores. Whether you're a brick-and-mortar store owner, an online store seller, or a person engaged in marketing, following the 25 moves in the application scenario to form your own business routines will surely help you double your profits. If you have questions, you can also leave a message to ask for advice and exchange. In addition, if you are a consumer, you can also understand the business of the set, to avoid the consumption of "stepping on the pit".

Now let's see what these behavioral economics concepts are and how they can be applied to make money in business.

In each of our minds, we keep money in different accounts. This will make us spend money in many irrational situations.

If you want to buy a two thousand dollar scarf for yourself, you will feel guilty, but if your partner gives it to you as a gift, you will be happy. In business, you can set your product in a certain customer's mental account, as a gift, to maintain the relationship with, so that the user will be willing to spend more price to buy.

Case: ① "love her, ask her to eat H?agen-Dazs", H?agen-Dazs ice cream belongs to the psychological account of the expression of emotions; ② "this year's holiday do not accept gifts, accept gifts only accept Platinum", the health care products with a sleeping effect is defined as a gift. The psychological account, all let consumers with a higher price for the product to pay the bill.

Application:

Define your product in an appropriate psychological account, you have to find justification for consumers to buy, can eliminate the consumer spending guilt. Including: 1. psychological account of gifts; 2. psychological account of expressing or maintaining emotions; 3. psychological account of filial piety for the elderly; 4. psychological account of healthy growth for children and so on.

When we make decisions, when we use different frames of description, it will lead us to be mentally "anchored" in different points, and finally make different decisions.

Application 1: Avoiding Extremes

When there are only two choices, people will favor the cheaper one, and when there are three or more choices, the customer's frame of mind is redefined, and the choices are avoided, and they tend to favor products closer to the middle of the range.

Application 2: Unit Price Anchoring

You go for a 1-month website membership for $30, 1 year for $40, and lifetime for $50. This $30/month is just an anchor thrown by the seller, but it makes you feel that $40/year and $50 lifetime is a great deal, which can push consumers to make a decision right away, and still feel like they're taking advantage of a bargain. Further, when you go to a Japanese buffet, you find that the unit price of each dish on the menu is very high, which is a unit price anchor that makes you feel like you're getting your money back by ordering a few dishes, which is a very good deal.

Application 3: Recalculating