BEHAVIORAL ECONOMICS: BEHAVIORAL EFFECTS IN MARKETING AND BRANDING

Abstract

The relevance of the study is due to the formation of behavioral economics and its development at the beginning of the 21st century, which influenced the change in the interpretation of consumer behavior as an irrational creature. The irrational nature of human economic behavior based on instincts that form social habits has led to the need to change the approaches of enterprises to interaction with consumers. The purpose of the study is to systematize behavioral effects for the purposes of marketing and branding. To achieve this goal, general scientific and special research methods were used, in particular, induction and deduction, analysis and synthesis, system comparison. The result of the study is the identification of the essence and principles of behavioral economics as the latest direction in economic theory, as well as the allocation of behavioral effects for the purposes of marketing and branding. The process of consumer decision-making under conditions of uncertainty and risk according to D. Kahneman is described. It is proven that enterprises can purposefully influence consumer decisions under conditions of uncertainty and risk based on the identified needs, interests, motives. The role of marketing and branding in consumer decision-making is revealed. To ensure a quick decision of a consumer based on emotions, it is recommended to use socio-humanitarian and information and communication technologies, branding, digital marketing technologies and tools, product design, integrated marketing communications, appeal to emotions, impression design, and other marketing and branding tools. The behavioral effects recommended for use in marketing and branding to influence a quick decision are systematized and described: attachment effect, anchoring effect, possession effect, framing effect, IKEA effect, comparison effect, expectation effect, halo effect, placebo effect, availability and affect effect, trust effect, social confirmation effect. The practical value of the article lies in the applied recommendations for the use of the identified behavioral effects that allow influencing the choice based on a quick emotional decision at each point of contact along the consumer's path. This forms a holistic positive customer experience and stable associations with the product and brand. Improving the customer experience is a strategic task of the enterprise, which in the digital environment is solved through physical and digital convergence.