Applying Behavioral Economics 'Assumptions' to Business

The concept of 'confirmation bias' in behavioral economics shows that we tend to selectively accept information and lean toward information that supports our existing beliefs and assumptions.

This psychological tendency also deeply influences the customer decision-making process in business and is used to form effective marketing strategies.


For example, let's consider a case where an automaker launches a new eco-friendly car into the market.

Customers who have a positive opinion of eco-friendly cars are drawn to advertisements that emphasize information about being environmentally friendly.

Here, the manufacturer uses confirmation bias to show how excellent the car is for the environment,

and by pushing data on how it reduces CO2 emissions to the forefront, they reinforce the customer's existing beliefs and lead them to purchase.


Confirmation bias is also prominently seen in the field of investment.

Once an investor likes a stock, they are prone to ignoring information regarding the possibility that the stock's value might drop.

This is because they want to maintain the belief that their choice was correct, and it is not uncommon for this bias to cause them to increase their losses.

By understanding this confirmation bias, companies can predict what kind of information customers will react to and what kind of information they will ignore.

By utilizing this in marketing strategies, they can more effectively approach their target customer base and convey the appeal of their products and services to the maximum extent.


Understanding how we process information and how we react is extremely important not only in business but also in daily life.

The insights provided by behavioral economics will serve as valuable clues for promoting more rational and effective decision-making.

At a class reunion four years ago, I was mocked for working as a writer.

'I'll show them!'

I thought that, but how could I actually do it...

Writing skills or sales? Certainly important, but can I really show them up with things everyone else is doing?

While I was worrying about that, what caught my eye at the bookstore was

'Behavioral Economics'

This is it! Since then, I studied intensely and my income increased about tenfold in one year! I see,

so this is how you appeal to people's subconscious!

After that, I studied for two more years and my side-hustle blog revenue also increased dozens of times over!

Here is a summary of articles packed with the essence of those three years

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