Behavioral Economics Theories in the Colombian Navi Market
DOI:
https://doi.org/10.58445/rars.633Keywords:
Psychology, Business, behavioral economics, EconomicsAbstract
Behavioral economics is a field that combines different aspects of economics and psychology to understand human decision making. The field has applications in a wide range of settings including business, policy making, and health care. The present study tested the effect of different behavioral economics theories such as the framing effect, nudge effect, decoy effect, and default effect on consumers. We tested these theories through online surveys using a sample of 2,000 consumers of the Honda Navi motorcycle in Colombia. We found that the default effect was the most effective at influencing people's purchasing decisions in the Navi market. Furthermore, because of different variables, the framing effect, nudge effect, and decoy effect were found to not influence consumer behavior or choices when personalizing a Navi motorcycle. We suggest that this happened because of the previous knowledge that the customers had and because of the question design.
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