Marketing Strategy Analysis Under The Perspective Of Behavioral Economics

Adam Smi thinks that all economic activities are derived from the needs and self-interests of people. Traditional economics which is represented by neoclassical economics deem people in economic activities as rational economic men, which eliminates the influence of psychological factors.However, behavioral economics rectify the assumption. Behavioral economists think psychological factors will influence people’s behavior and consumers’ judgement and decisions are not completely rational. With the combination of economic and psychological studies, behavioral economics offer us a different perspective to study consumers’behavior. This thesis analyzes consumers’behavior base on behavioral economics and tries to find out those factors which affect consumers’behavior.Based on consumers’ decisions in real life,then it analyzes Spain brand ZARA’s marketing strategy. At last it comes out with appropriate marketing strategies focusing on targeted consumers. The conclusions will be useful and operable in real life.At first, this thesis studies consumers’psychological and irrational characteristics in the perspective of prospect theory, anchoring effect, mental accounting and inconsistent time preference.Prospect theory studies consumers’choices under uncertain conditions. Compared to loss, consumers are less sensitive to gain, and in the gain area they tend to avoid risks, whereas in the loss area they tend to show risk preference. Anchoring effect finds that consumers usually judge things by their anchor point, which results in false decisions. The characteristics of mental accounts tell us that consumers have their own accounting methods and arithmetic ways so that different mental accounts cannot be substituted, which is a a particular calculation method. Preference inconsistency with time shows consumers’ preference will change or even reverse with the change of time.Then this thesis analyzes ZARA’s marketing in the perspective of behavioral economics base on the analysis of consumers’behavior. In the conclusion part, it concludes some general marketing strategy, including a thorough research of market before marketing, understanding consumers, paying attention to creating an anchoring system, making a full use of consumers’mental account, instant response to consumers’needs, etc. In the meantime be aware of complex mental effects and diversified marketing strategies will be more effective.