NEW YORK, Sept. 6, 2017 /PRNewswire/ -- RevTrax, the leading provider of personalized offer technology and services, has collaborated with marketing researchers from Cornell University and the University of California San Diego on the study of behavioral economics to conduct proprietary, multivariate studies testing the effects of promotional offers on the purchasing decisions of consumers for RevTrax brand partners.
Professor Ken Wilbur, M.A., Ph.D. (UC-San Diego) and Professor Jura Liakonyte, M.A., Ph.D. (Cornell University), are experts in behavioral economics and its applications—including data analytics, experimental design and marketing models. They have partnered with RevTrax on more than 15 studies reaching over one million consumers. This partnership has yielded new insights into promotion beneficiary framing, offer terms, bundled promotions and spillovers between proximate offers—resulting in RevTrax's clients moving more units per promotion dollar than ever before.
Behavioral economics refers to the discipline of applying cognitive psychology to the traditional models of economic decision-making. "Behavioral economics can be a valuable toolset for understanding the behavior of consumers," says Professor Jura Liaukonyte, Ph.D., who led the study. In traditional economics, predicting human behavior relies on the rational choice model. In the traditional economic model, this rationale is used to predict real human behavior, even though humans, of course, do not act rationally and often make decisions based on impulse or desire. Leveraging behavioral economic principles, brand marketers can gain greater insights into consumer decision-making, more accurately predict future behavior and adjust promotional strategies accordingly.
"Unlike studies documenting well-accepted behavioral biases, Cornell and UC-San Diego's experimental designs, combined with RevTrax first-party purchase data and insights technology, push the frontier in digital test design," said Neil Gandhi, RevTrax VP of Data Science. "Together, this combination of academic research and marketing technology has uncovered new behavioral aspects that favorably impact consumers' choice beyond simply price-based offers."
While there has been an uptick in the discussion around behavioral economics, the application in business is relatively new and these studies are the first of their kind. RevTrax and the researchers at Cornell and UC-San Diego have demonstrated that harnessing these concepts and combining them with first-party purchase data can inform business decisions that align with real-time consumer behavior. Any brand partnering with RevTrax can leverage these behavioral economics-powered solutions to uncover business insights relevant to any product category. From vitamins, to clothing, to bottled water, RevTrax ensures the right offer reaches the right person, at the right time, delivering value to consumers and brands alike.
For many companies, harnessing the power of behavioral economics is unrealistic and often goes unaddressed entirely. With RevTrax solutions (revtrax.com/insights), companies no longer need to allocate time and resources to mining data that yields little insight into their consumers' minds. RevTrax can run multivariate testing across platforms, products and offers, providing first-party purchase data and adjusting offers as behaviors change. "By combining the unique first-party purchase data generated by our platform with academically-proven behavioral economics principles, we are able to optimize pricing and creative for your promotions in hours or days instead of weeks or months," says Neil Gandhi VP of Data Science, RevTrax.
To learn more about how companies work with RevTrax to leverage behavioral economics, please visit: revtrax.com/insights.
RevTrax is the only one-to-one digital promotions company that leverages shopper intelligence to deliver smart, personalized offers in real time. Its omnichannel solutions measure the impact of digital marketing on in-store sales by providing actual transaction-based attribution data and analytics. Marketers deploy RevTrax solutions across devices and channels including display, social, email and search. RevTrax offers create increased value and ROI for clients, enhance consumer engagement and utilize its valuable shopper insights database. RevTrax leverages its proprietary technology and database assets to optimize marketing investments and provide valuable attribution data. Founded in 2008, RevTrax is one of Crain's "Top 100 Best places to work in New York City."