The Two Sides of Human Economic Behavior - Mr. Spock and Homer Simpson

In the past brand names such as Ford and Kraft had an inherent value because as a consumer, you assumed anything they made was pretty good.  Some new company advertising a new product was risky, so you stuck with what you knew.  A recent Pricewaterhouse Coopers study found that 80% of consumers look at online reviews before making major purchases.  Proof that in today’s digital world our buying decisions are strongly influenced by access to research, consumer reports, J.D. Power’s quality rankings, and our social network’s collective opinion.

Who wins when the value of a product is subjective and pricing contextual?  The consumer who can make better choices?  The big boys who make brand association integral to the experience of the product? Or new-to-the-market brands building better, cheaper products and spreading the word through today’s digital channels?

Economists have developed models for how pricing works. What’s needed now is to base our strategies on how people work.  Ronald J. Baker will walk workshop attendees through The Two Sides of Human Economic  Behavior by exploring the principles of Austrian economic ideas and recent research on behavioral economics will also be presented in the context of consumer decision making and pricing.

Baker will lead the workshop Mr. Spock and Homer Simpson: The Two Sides of Human Economic Behavior at the PPS 25th Annual Spring Pricing Workshops and Conference in Chicago this April.