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Companies can transform society in the
economy through scientific thinking and
behavioral economics because it’s a much
better way to genuinely understand the
products and services that they value
that they need it’s a better way to help
them buy the products and services that
are the right fit for for that man for
their families really powerful example
is insurance insurances a product that
we all need we all have risk in our
lives and insurance is a way for us to
offset that risk so that we’re not
devastated financially insurance has
been around for hundreds of years and
yet how many people actually understand
insurance how many people buy the right
kind of insurance that they need why is
such a fundamentally important product
something that helps prevent us from
having financial ruin why is such a
product that makes sense
still it’s so difficult for us to buy
behavioral economics can actually help
explain that people don’t do a good job
of assessing risk they don’t understand
probabilities they don’t understand you
know oh I have to pay something you know
to help prevent and offset this risk
they don’t understand those kinds of
trade-offs behavioral economics gives us
those insights so then we can actually
better position something like insurance
to help engage consumers and buying the
right amount of insurance that they need
so that would be an example where people
are better off if the company has helped
them to buy the product and service that
they need the other way that we like to
talk about our work b/e works is you
know even when we’re working maybe with
a company that’s doing you know frozen
pizza you’re like okay how are we
changing the world we’re just helping
sell frozen pizza what what is so noble
about us working on frozen pizza
the thing is when we’re working with the
company when we’re working with the
marketing team we’re encouraging them to
have a whole new way of thinking that’s
based on this
scientific method we give them the
behavioural insights they can understand
the biases that people have when they
make decisions maybe it’s about things
like how much time they have to make
dinner
maybe those decisions are more in the
consumer domain but then the bigger
picture is that we’re teaching that
marketing manager to think about
scientific insights and then maybe to
design an experiment that tests new
marketing approaches so then how can
that play out in the real world is maybe
now that marketing manager who’s now
using science to develop a better
marketing campaign when they’re
confronted with pseudo scientific
information about things that are
opposed to vaccines or information about
GMOs they’ll now be grounded in making a
much better informed decision in their
overall and day-to-day life so
scientific thinking then and having
scientific thinking not only can help us
make better business decisions but can
help us all collectively make better
decisions for society.