Behavioural economics 101

It is time for the service industry to put a checklist to ensure that customers are treated well

Consumer behaviour often appears irrational and counter-intuitive. Small things get blown out of proportion. And sometimes what should have been a flare-up dies down quickly. Behavioural economics is now in a position to give us a new lens for analysing consumer behaviour. If we apply this lens we can decode the “irrationality” and see how it was in fact very “rational”. 

It is true that in this day of 24X7 social media, you cannot get away with treating your customers shabbily. And if you stonewall questions you get punished even more. A few weeks ago United Airlines CEO Oscar Munoz learnt