As humans, we mentally categorise our money depending on where it comes from or what it has been allocated for in our budgeting process. These associations then have an impact on where we are comfortable spending the money and even how easily we spend it. For example, we tend to use money we have saved for more considered purchases. But we are happy to be more extravagant with money we have been given or found. If you are persuading us to part with money, it can be useful to understand where we have already allocated it.
It’s just fuel
A car is an investment, so you mentally account for all the things you’ll have to pay on it. But Peugeot’s “Just Add Fuel” boils it down to just one thing – fuel.
A shortcut to getting on the road, consumers know their money is going on what they’ve saved for.
A bank statement that's nice to look at
Building a bank that’s “built for the way you live today”, mobile-bank Monzo cater to consumers with an app that makes keeping on top of finances, simple. Equipping people with a pre-paid debit card, they can set budgets for themselves, so they can categorise their money and spend it on what it’s intended for. Connected to a simple, user-friendly app, it takes money out at that moment instead of four working days later.
What is Behavioural Economics?
Behavioural Economics has been around since the 60s. It blends elements of psychology and economics to identify the mental triggers, or bias, nudges and heuristics, that affect the decisions people make.
This blog series is your go-to guide for a snapshot into what these triggers are, and how they can be used in marketing to influence consumer behaviour.
A bit about us
As an agency, influencing behaviours is core to what we do and applying Behavioural Economics to marketing communications is a natural progression. If you are interested in understanding more about how we do this get in touch now.
Find out more about the connection between consumers and behavioural economics in our latest report on the top trends driving consumer behaviour. Download it here.
By Phil Monks
Deputy Creative Director