No Small Change

CHAPTER 12Do You Get the Power of Behavioural Economics?

Your authors have agreed on the very large majority of the things we're saying in this book. We've generally agreed quickly, too, with little need for difficult debate or awkward compromise.

This chapter is the exception. It's broadly about the emerging – or perhaps now largely emerged – science of behavioural economics. Anthony believes this is one of the very most important drivers of the new financial services marketing. In essence, he thinks that the insights increasingly available into consumers' wants, needs and above all behaviours open up a whole new world of marketing opportunity. Lucian believes that most of these insights have been well-understood for decades by almost everyone except classical economists. In particular, he thinks that a great many originated in the field of direct marketing, and therefore have little or nothing to teach the marketing community.

Clearly, we need to sort this out between us. But both points of view have merit. So, rather than have the argument privately and then write something we can both put our names to, we thought you might find it interesting if we have the argument publicly in this chapter. We might even finish up coming to an agreement. And if not, you can decide for yourself which of us you think is right.

LC:	Let's start by pinning down what it is that we disagree about. What exactly are you saying about behavioural economics, and why do you think it's so important? ...