As a consumer today, have you been in a position when you didn’t feel the need for a product but developed a sense of wanting it once it was pitched to you? We’ve all been in situations when we’ve ended up purchasing more than one item. While there could be multiple factors that lead us to spend more on our wants, one significant aspect is Human Psychology.
What does our behaviour have to do with business? Actually, a lot. Psychological sciences and business education share an integral relationship. The nuances of human nature help enterprises to relate to their customers and launch problem-solving products. Businesses that cater to elitist clientele use this strategy to attract their target audience. For example, when a luxury brand like Gucci announces their exclusive collection, they align their messaging to create a perception of exclusivity and urgency scarcity, turning consumers’ wants into desires.
Overlooking the human element
Currently, educational institutions offer a curriculum that focuses on running a business. This tends seems to overlook the human element because of the bias towards the economic theories based on assumptions. Hence, Business schools need to include psychological sciences in their curriculum to help students understand the cognitive nature of human psychology.
Today, youngsters form a significant section of consumers who function in the digitised world, changing the outlook towards the traditional business model. They are used to easy access to products through mobile applications and e-commerce websites. The standard sales model allowed the sales team to gauge customer reactions. But,with online shopping gaining traction, understanding consumer patterns depends on the available data of consumer behaviour and makes it easy to determine future behaviour. For instance, if you binge-watch shows on Netflix, you will receive constant suggestions based on the content you’ve watched previously, according to your preferred days and timings. This approach helps keep customers hooked. Thus, marketers and business teams can develop better products and marketing strategies by inspecting human reactions from all possible angles. If students pursuing business education are taught about the humanistic approach, it will become easier for future innovations in the business world.
This way, Psychology and Business Education can help companies achieve their professional goals and enable them to solve consumer needs. The NEP 2020 also calls educational institutions to focus on the interdisciplinary approach for higher education. So students with business aspirations who are well equipped with psychological knowledge can understand their customers better and excel in applying business strategies in real-time.
The writer is a Professor of Economics, Vidyashilp University
