This document discusses how behavioral economics can be used in retail by influencing customer and employee decisions and behaviors. It explains key concepts in behavioral economics like heuristics, cognitive biases, the scarcity principle, default options, choice architecture, and nudges. It also discusses how marketers have long used these psychological principles even before behavioral economics was established as a field, and the importance of using behavioral insights ethically.

1. A GLANCE AT
BEHAVIORAL ECONOMICS IN RETAIL
Alireza Ranjbar SHourabi

2. I HELP
businesses change the behavior of their
customers and employees.
2

3. BEHAVIORAL
ECONOMICS
How and Why we make decisions
3

4. “BE gives us an insight into the
irrational forces that often shape our
behavior and these insights can help
any business optimize its interaction
with customers.
-William Trump
4

5. HEURISTICS
&
COGNITIVE
BIASES
Rule of Thumb, Mental Shortcut
5

6. MARKETERS HAVE
USED THEM FOR A
LONG TIME EVEN
BEFORE THEY HAD
A NAME.
Often Unknowingly
6

7. PEOPLE
LIE
7

8. DECISION
PARALYSIS
8

9. SCARCITY
PRINCIPLE
9

10. FOCUS
GROUPS
10

11. SURVEY
FORMS
11

12. DEFAULT
OPTION
12

13. CHOICE
ARCHITECTURE
13

14. C H I E F
BEHAVIORAL
O F F I C E R
(CBO)
Leader of Nudge Unit
14

15. NUDGE UNIT
➤ Persuasive Design
➤ Human-Focused
➤ Experimental Design
➤ Psychology
➤ Data Analysis
15

16. DARK NUDGES
Black-Hat Persuasive Design

17. FLASHING A SMILEY
17

18. ETHICAL
PATH
➤ Transparence
➤ Ease to opt out
➤ Benefit
18

19. THANK YOU!
Alireza Ranjbar SHourabi