Neither intuition nor ‘expert opinion’ constitutes the basis of our approach. We use scientific methods based on experiments performed to the highest possible academic standard to ensure our work is as methodologically sound as possible. We ensure the objectivity and validity of our proposals. We always make sure the results are statistically significant (statistical significance is the probability that an observation happened by chance rather than as a reflection of reality). Randomized Controlled Trials (RCTs), now a standard in medicine, are among the favorite method of behavioral economists. Well performed A/B testing is actually quite close to an RCT.
We also distinguish between consumer perceptions and actually behavior. People often act differently to what they say (and sometimes even honestly think). Through our approach we are able to address so called attitude-behavior gap which we all know when comes to regular exercise, eating healthy, being green, etc. Our method significantly differs from traditional approaches to market research. Rather than small sample client surveys or focus groups, we observe nearly all clients.
Our departure point of behavioral science creates a specific need for data analysis technologies. We use a number of tools to dissect data (our favorite platforms are IBM Watson Analytics, Keboola, Similarweb and Optimisely). Additionally, we develop our own data analysis tools, mostly used for quick, unstructured data aggregation and analysis (i.e. qualitative data from customer feedback surveys). Our mixture of state-of-the-art technology with in-house tools makes us unique.
For customer feedback we use enazor.cz
Humans do not always make fully rational decisions. Sometimes, there are obvious causes for this (i.e. lack of information in decision making process). In many other occasions, though, the true cause of the break down in rational thought is rooted in biological predisposition. Behavioral economics uses tests and experiments to understand how people actually make decisions. It analyzes how humans repeatedly and systematically make irrational decisions. Building on a combination of experimental psychology and cognitive science, behavioral economics exposes ‘biases’ in the decision making process. The essence of behavioral economics is to use experiments to test and re-test the decisions people make under a range of circumstances. Accordingly, the results of these experiments are applicable to many decision making situations (i.e. customer purchasing decision or viewer decision about content).
Behavioral economics has produced a significant body of research around the concept of ‘Nudging’. In behavioral economics, a ‘nudge’ is an action that induces required behavior. Such a ‘nudge’ may have a character of choice architecture (e.g. phrasing of a question to produce a certain answer), framing (providing a specific context information), and priming (providing additional seemingly unrelated information) among many other forms. A specific ‘nudge’ needs to be created for particular circumstances, and needs to be tested on people in the given situation. Clearly, there are many applications of behavior economics insights for business.