Behavioural Economics has been around since the 18th century by Adam Smith’s “Theory of Moral Sentiments” book.
Behavioural economics incorporates the economics and the human psychology to identify psychological, cognitive, emotional, cultural and social factor that affect the decision making process of people.
Why it is important for us?
Behavioural economics can be applied to marketing, finance, business operations.
Literally, where you face with humans, you can apply the behavioural economics tactics.
For marketing and social media marketing
The environment of marketing is very complicated and nearly impossible to make theories for the best Facebook, Instagram, Twitter or LinkedIn paid or organic posts or print ads.
The missing point is the unchanged human mind.
Despite all technological developments in last one hundred years, our mind remained unchanged!
You should look for understanding the only asset, human mind! Once you understand the human mind, you will create content that has a meaning to your target audience.
As the social media content is consumed by humans and our brain doesn't a switch for Facebook, Instagram or Twitter to interpret the content. For our brains, they are all the same!
Why? The social media channels are not developed by psychological theories. They all started as tech companies and evolved. Keep in mind, the Instagram used to be a 'check-in' app (Burbn) and never intended to be a photo sharing platform