Problem combining psychology and classical economic theory and analyze real people’s behavior from an economic point of view.

One area of research in your field of study is consumer behaviour. It would be interesting to study comments and posts about a product or brand and then link to actual buying behaviour - do positive comments link to actual purchase or not? Or are the comments just being made without buying or consuming the product?

I do not work for Neesa. I don't know how it appeared as I am a Ph.D., researcher in marketing.

Regarding the question, behavioral economics and social media may be linked by consumer attitudes and social networks, and it would be interesting to find out what a consumer or a social media enthusiast is looking for in terms of motivation and the relationship with how he/she feels a message is framed increasing his likelihood of getting drawn in online activity i.e. his personal and social yield curve and how they are related.

Dear Colleagues and Friends from RG,

If any of you conduct research in the field of the above issues, I invite you to the discussion.

Please, answer the following question:

What can be interesting research in the field of behavioral economics regarding the issue of new online media?

The above question inspired me to the following considerations:

How can the use of social media portals change people's social behavior, what new opportunities and what new risks it generates?

Social media can affect the personal lives of individual people. The sociological behavior of people is changing. Some people exchange traditional contacts with other people for contacts via social media portals. It changes the sociology of people's behavior, it affects sociological behavior, it generates new types of problems that also affect behavioral economics and the behavior of entire communities. In addition, there is the issue of the risk of losing personal data that may be stolen from social media portals. This risk also shapes the potential discomfort of using social media portals, if it turns out that some part of personal data has been mistakenly made public or stolen by cybercriminals. Unfortunately, despite the assurances of companies that run social media portals, information on these websites is not always fully secured and can be stolen by cybercriminals. In addition, the issue of downloading data from social media portals by large companies to Big Data database systems should be added in order to process them for marketing purposes. The issue of privacy in social media is very important and is related to the security of personal information. Privacy is at risk in terms of information posted on social media portals.

Please, answer, comments. I invite you to the discussion.

Do consumers always make rational consumer decisions when buying economic goods?

Behavioral economics

In the second half of the twentieth century, new neoclassical trends dominated in the history of economic thought, partly referring to the foundations of classical economics.

However, at the end of the twentieth century and in recent years, various concepts that complement or partly undermine certain assumptions of neoclassical economics are developing dynamically.

These are primarily theories based on conducted studies on behavioral consumer behavior in consumer goods markets, investors and shareholders in the capital markets, entrepreneurs in the markets of capital goods, etc.

These various theories supported by the results of research are in the mainstream of behavioral economics.

However, despite the ongoing development of behavioral economics, neoclassical economics still dominates in academic textbooks dedicated to students of economics.

Neoclassical economics is based on the fundamental assumption that people make rational economic decisions.

Advocates of the neoclassical economics suggest that the theory of neoclassical economics correlates with the key assumptions of psychology regarding rational human behavior.

I agree with this correlation that irrational decisions only apply to situations in which people feel very strong emotions of both negative nature, such as anger, hostility, hatred or positive emotions associated with feeling of love, friendship or belonging to a given social group.

On the other hand, economic decisions are always made rationally according to classical and neoclassical economics.

However, in recent years, on the basis of the development of behavioral economics, there are more and more data and results of research carried out, that unfortunately there are many examples suggesting the irrationality of some economic decisions.

Often, consumers make unnecessary purchases based on an efficiently carried out advertising campaign for products or services.

Perhaps consumers are more and more often susceptible to the impact of effective advertising campaigns, in addition to traditional media, also in new online media, including on social media portals, where viral marketing is widely used.

Often in advertising campaigns, specific products and services are presented as unique, innovative or having such features as opposed to the substitutional offer of competition.

The message that is not always formulated in the advertising campaign is truthful, but some consumers may receive such a message as objective and this translates into an increase in the sale of a specific, effectively advertised assortment.

In addition, there are price promotional campaigns in large-format stores, which also stimulate consumer interest, increase sales.

Pricing promotional campaigns often also increase the purchase of unnecessary goods for consumers or proverbial buying.

A negative aspect of such buying is the subsequent discomfort of spending too much money on this type of shopping, despite the fact that the main activation factor was an effective price promotional campaign.

Often it happens that in the situation of this type of occasional purchases for stock some of the purchased products are thrown away, that is, they end up in the trash.

Especially often such situations happen, if consumers under the influence of emotional susceptibility to marketing content used in an advertising campaign make purchases of food products with a short shelf-life date.

These are typical situations indicating the unnecessary purchases of unnecessary products by consumers.

In such situations, the effectiveness of advertising campaigns can be analyzed in terms of the psychological impact on consumer emotions, so this is the subject matter of the issue described as behavioral economics.

According to classical and neoclassical economics, consumers rarely change their preferences, and if they change it is a very slow process, difficult to diagnose in a short time.

In addition, according to the trend of neoclassical economics, citizens, households and business entities maximize their own profits in the conditions of competitive market structures.

However, the results of experiments and conducted research in the field of behavioral economics have already questioned the fundamental assumptions on which the theory of choice in the neo-classical economy is based.

Why is it so that people do not always make rational economic decisions?

The answer to this is given by behavioral economics, which deals with cognitive errors affecting people's decisions.

These decisions are not always rational and because they concern many shopping situations not always needed products, so they are also of significance for the domestic or even global economy.

The global significance of these not always rational economic decisions arises when the effects of these decisions are analyzed in the context of economic globalization processes.

In addition, the results of research in the field of behavioral economics indicate that consumer preferences may change depending on the context, ie the specificity of a particular situation in which decisions are made.

In addition to the study of consumer behavior on the basis of behavioral economics, there are behaviors of, for example, investors on capital markets who also often do not have full information about the issuer of securities buy or sell shares, bonds and other instruments listed on securities markets under the influence of partly emotions and not just rationally made decisions.

Emotion, which often accompanies decision making about purchasing or selling securities, may have positive acceptance of high risk levels in good times in different markets and as a result of the so-called "sheep's rush", which boils down to buying, because it was previously bought by a friend and neighbor, and earned it.

There may also be irrational decisions on the sale of securities in a situation where it later turns out to be a short-term panic on the capital market.

In the light of the above examples, irrational economic decisions made by citizens and economic entities often conditioned by the psychological factor of positive or negative emotions are more and more numerous.

This raises the question why more and more in recent years we will be able to provide these examples confirming the validity of the development of research in the field of behavioral economics.

Is it because in recent years more and more economists are growing up and seeing research in the field of behavioral economics?

Or rather because in the deregulated financial markets market instability situations are more frequent, markets tend to lose their market equilibrium, financial crises occur more frequently, and the scale of undervaluation and the more revalue of market valuations of certain assets can be more and more pronounced on stock exchanges.

Analogously, the impact of more and more effective advertising campaigns on consumers, advertising campaigns also conducted on social media websites can increase the importance of occasional emotions in the context of decisions to buy specific products or services.

In view of the above, the current question is: Do consumers always make rational consumer decisions when purchasing economic goods?

Please, answer, comments. I invite you to the discussion.

Analysis and categorization of consumer behavior of users of social media portals

The purpose of grouping behavior of users of social media portals into specific classes of behavior should first define these defined classes. Sentiment analysis using large data sets collected from entries and comments from social media portals and transferred to Big Data database platforms may be helpful. Then, watching changes in certain types of behaviors of users of social media portals, you can analyze data collected in Big Data according to these observation results. In addition, a useful tool can be an analysis of the behavior of users of social media portals based on up-to-date posts, posts and comments on specific social media sites, statistical analysis of comments on specific topics of posts. This type of research is carried out by online technology companies that run social media portals and use the results of this research to develop their viral marketing services, because this area of ??marketing is a key determinant of revenue generated by these companies on the sale of advertising on social media portals.

I invite you to the discussion

Analysis of the social consequences of the use of social media on smartphones by young people?

What social negative and positive aspects can be given to the use of social media on smartphones by young people? Which social aspects prevail? Is the use of classical research methods adequate in the assessment of this problem, or should new research methods be adapted to new media? If the youth devotes more than for example one hour a day to browsing social media portals, are there no negative aspects that may disturb social development and sociological, educational and psychological factors? Are there adequate development of new media developed - new research methods that would objectively examine the above issues objectively? On the basis of these studies, one could define a framework for the safe use of social media portals in terms of posted posts, comments and news and, for example, in terms of time spent on the use of these media on a daily basis.

Please, answer, comments. I invite you to the discussion.

Some ideas regarding digitization already included in the call for application for Horizon 2020

Dear Friends and Colleagues of RG

I propose an analysis of changes in behavioral behavior of consumers, business entities and other participants of individual markets, which can be observed on the basis of the analysis of entries, comments, posts, etc. typed by users of social media portals.

These studies are carried out as part of the sentiment analysis on data downloaded from the Internet and collected in Big Data database systems.

What is more interesting is the Business Intelligence type of analysis carried out in business entities using specialized software. The development of analytical platforms operating in the Business Intelligence formula automates and objectivises economic, financial and technical-economic analyzes regarding the functioning of business entities.

Do you agree with me on the above matter?

Please reply

I invite you to the discussion

Best wishes

Many interesting topics for scientific studies in the field of behavioral economics can now be formulated and conducted in the field of commercial applications and economic activities conducted or supported by specific types of activities in the field of e-commerce or marketing on social media portals. On the one hand, these portals are still developing strongly, the number of users of these portals is increasing. On the other hand, internet technology companies offering information services available on social media websites improve the offer of marketing services offered to users of these portals. Dynamic viral internet marketing is developing dynamically on these portals, such as real-time marketing. In addition, the importance of security of transfer and data collection in Big Data database systems, run by technology companies developing specific Internet information services, including those available on social media portals, is growing.

What other interesting research topics can be formulated in the field of the above issues?

What do you think about this topic?

Please reply

I invite you to the discussion