Behavioural Economics & Pricing (BEP) - (with Case Studies)

Economic theory tries to explain how a typical ‘rational’ economic agent ‘ought’ to behave. One of the critics of this paradigm is behavioral economics which attempts to explain and model how an economic agent actually behaves. In the process it wants to model people as ‘nice’ and also ‘people are stupid’ so there is a shift from how an agent ought to behave to how the agent is behaving. The type of questions that are raised are: is the utility maximizing rational consumer a good enough approximation of consumer behavior, or ‘expected utility’ a good enough approximation of decision making under uncertainty and in the process brings back psychology into economics. This is what economics has been invented for. This could have serious implications for pricing as well as viability of the organization.

Objectives

The programme aims to understand how the psychological insights in human behaviour helps in designing corporate and public policies towards pricing, saving and investment behaviour, finance, health and medical care, improving choice architecture, and climate change, and resist temptation etc. Look at things from longer term perspective and from collective perspective for a sustainable business, planet and people.

Contents

  • Topic 1: Introduction to Behavioural economics & how it is Different from Conventional Economics, Rationality Debate: Are Consumers Rational in their Choices? 
  • Topic 2: Prospect Theory: Risky choices, Expected Utility theorem and its limitations, Endowment Effect, and Status Quo Bias.
  • Topic 3: Heuristics and Biases in Decision Making – Anchoring Effect, Priming, Sunk Costs, 
  • Topic 4: Choice Architecture – Signalling – Framing & Anchoring in Pricing
  • Topic 5: Economic Motivation and Social Behaviour – Herd Behaviour, FOMO, Money Illusion, Placebo Effect, Success Paradox, Inequality.
  • Topic 6: Social Learning & Placebo Effect – Medicines, Money, Corporation, God, and Nation-State – The Game of Trust, Quality & Pricing Issues
  • Topic 7: Individual Differences – Role of Personality, Mood & Emotions, Signalling, Efficient Market Hypothesis, Time preferences, Forward Planning Challenge
  • Topic 8: Pricing & Profits & Innovations in Pricing – How forms ignore pricing and its implications for viability
     

For Whom

Participants will include people working in Marketing and Pricing professionals.

Venue & Duration

The programme is scheduled during April 24-26, 2024 on a residential basis at MDI Gurgaon Campus, Mehrauli Road, Sukhrali, Gurugram. Accommodation for participants would be available at MDI Gurgaon Campus from the noon of April 23, 2024, to the forenoon of April 27, 2024.

Registration & Fees

Participants should be nominated by their organizations. The enclosed nomination form should be completed and returned with all the details. The fee of the program is Rs. 42,500/- (Rupees Forty Two Thousand Five Hundred only) per participant which includes a professional fee and all charges for boarding, lodging and supply of course materials during the programme. GST as applicable will be charged extra in addition to the programme fee. Payment should be made by Cheque/NEFT/RTGS.

Discount Policy

With a view to our long-term relationship with your esteemed organization, we are pleased to introduce the discount policy in this programme. The discount will be observed in the following conditions: (discount is applicable in NEPAL also)

  • 10% Discount against 3-5 nominations
  • 20% Discount against more than 5 nominations
     

Important Dates

The last date for receipt of nominations is April 10, 2024. The last date for withdrawal of nominations is April 12, 2024. Any withdrawal received after this date will be subject to deduction as per the Institute’s rules. However, substitution may be permitted.

For enquiry, please contact at ajay.singh@mdi.ac.in or +91-124-4560008.