Discover how behavioral economics can enhance marketing strategies by leveraging cognitive biases, decision heuristics, and consumer psychology to drive engagement and conversions.
2026 USING BEHAVIORAL ECONOMICS TO POWER YOUR MARKETING STRATEGIES Thoughts on the industry
TABLE OF CONTENTS Chapter 1 An introduction to behavioral economics Take a high-level look. Chapter 2 A quick recap of the history See where things have been to see where we’re headed. Chapter 3 The behavioral theory rundown Deep dive into the three theories. Chapter 4 Key takeaways And how to apply them going forward. “ HUMANS ARE OFTEN DRIVEN BY MOTIVES AND IMPULSES THAT DEFY QUANTIFICATION ” KATIE BRENNEMAN
AN INTRODUCTION TO BEHAVIORAL ECONOMICS Focus not only on the what and how of consumer behavior, but also on the why. Even more importantly, the theory draws heavily from the field of psychology. It helps to explain “irrational” consumer behavior like spending patterns that ignore statistical odds. Economics has always been principally a numbers game. But marketing? Marketing is about people – the customers and clients you’re seeking to serve. With a greater understanding of consumers’ buying habits, you have the knowledge you need to create more effective marketing campaigns that speak to your target audience. Though they’re different disciplines, economics and marketing can be mutually beneficial endeavors. In fact, for marketers looking to build strong, enduring connections with prospective and existing customers, the field of behavioral economics may well be the greatest tool in your toolbox.
Behavioral economics is a branch of economics that deploys psychological principles. This is in order to analyze and explain how people buy, spend, and save under diverse conditions. This field is predicated on the recognition that people often behave in ways that, from the perspective of a pragmatic statistical analysis, are unpredictable, irrational, or illogical. Its mission is to understand why people behave in the often “irrational” ways they do, particularly under risky and uncertain conditions. For marketers, insights derived from behavioral marketing can be a potent tool for defining, predicting, and engaging target audiences. It seeks to take some of the guesswork out of the field of economics, understanding that humans are often driven by motives and impulses that defy quantification. From a marketing standpoint, behavioral economics provides a critical new dimension in the effort to profile the target consumer and predict and influence their behavior. A QUICK RECAP OF THE HISTORY “BEHAVIORAL ECONOMICS PROVIDES A CRITICAL NEW DIMENSION” KATIE BRENNEMAN
Theory 1: Loss aversion vs prospective gains Theories derived from behavioral economics are grounded in the recognition that human beings rarely, if ever, operated under the controlled and predictable environment of the research laboratory. Rather, they live their lives, make their decisions, and enact motivated behaviors under conditions of uncertainty. Essentially, humans are always engaging in some form of risk analysis and management. Theory 2: The power of free For marketers, understanding the psychological underpinnings of loss aversion can be a powerful tool to engage and motivate your target consumer. The key, however, is to define how your target audience understands their risks and weighs their prospects. Theory 3: A generational mindset There’s a great deal of universality in human psychology. Our human needs, motivations, and fears seem to vary very little across demographic categories. However, there are still some salient differences across generations and demographics. If you want to use behavioral economics to power your marketing, you must understand these differences to prevent overgeneralization and poor engagement with your target audience. Application Theory 1 Theory 2 Theory 3 Theory 4 Theory 5 Engage ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Motivate ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Purchase ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ THE BEHAVIORAL THEORY RUNDOWN Let’s take it from the top. Source: Info Tech 2023 Theory 4: Play on past behaviors To define how your target audience understands their risks and weighs their prospects, use their historic behavior to weigh all the same factors as they do, and always have done, when making a purchasing decision. Theory 5: The mind matters Tools such as mind maps can help you get inside your consumers’ heads, allowing you to follow their decision-making process, weigh all the factors they consider before purchasing, and tailor your campaigns accordingly.
Behavioral economics restores the human aspect to the quantitative sciences. Its mission is to understand why people behave in the often “irrational” ways they do, particularly under risky and uncertain conditions. If you want to use behavioral economics to power your marketing, you must understand these differences to prevent overgeneralization and poor engagement with your target audience. From a marketing standpoint, behavioral economics provides a critical new dimension in the effort to profile the target consumer and predict and influence their behavior. For marketers, insights derived from behavioral marketing can be a potent tool for defining, predicting, and engaging target audiences. Thank you for reading FOLLOW US ONLINE FOR MORE INDUSTRY INSIGHTS www.turtl.co KEY TAKEAWAYS About the author: Katie Brenneman Katie Brenneman is a passionate writer specializing in lifestyle, mental health, education, and fitness-related content. Follow Katie online!