Strathmore Universiy Business School Logo


Behavioral Economics Approach on Product Testing

  Jul 22, 2016

How do product developers arrive at a model? How does the proposed model get tested for customer or user end experience? Can behavioral economics influence the perception of the product being launched into the market?

Speaking during the recently concluded Behavioral Research for Emerging and Applied Knowledge Conference (BREAK) at Strathmore Business School, Piyush Tantia from Ideas42 delved on The Value of Applied Behavioral Science, elaborating on how practical behavioral economics approaches can influence the perception of a product being launched into the market.

Product launch into the market have always been influenced by creative’s testing upon ideas and products and generally “betting” on the receivership of the item to the market. Can behavioral science substitute traditional engineering approaches of vigorous testing in a technical laboratory?

Behavioral economics as pioneered by Scholars; Daniel Kahneman and Amos Tversky, have translated into numerous practicability approaches, which transcend from product placement and consumption into influencing policy frameworks.

How people respond to certain communication information, pricing, placements and prompts can be used to test the effectiveness of the user experience of the product.

Using a case study of an experiment run by an e-commerce gaming website where people could purchase the game, “Sin City” explored the intricacies of online purchases in relation to user friendly experiences.

The experiment run on two separate terms, one which allowed users to pre-order the game and another with allowed users to directly purchase the game. Although the experiment launched on pre-order included a discount rebate which purchasers would be entitled to,there were 43% more sales of those who opted for direct purchase as compared to the pre-order sales.

Using the Behavioral model for product testing as highlighted by Tantia, should include;

  • A behavioral science model
  • Testing capacity, (Field, lab or both)
  • Investing in Research and Development (RnD)Teams
  • A cultural shift which is tolerant to failure

The benefits of such approaches in product launching can enhance; better performance through continuous improvement of the product, reduce the risk rate (through establishing solutions which have proven to yield better results).


BREAK (Behavioral Research for Emerging and Applied Knowledge) is an annual conference held by Busara Center of Behavioral Economics, ideas42 and Strathmore Business School.

BREAK is targeted at a broad range of companies and organizations; both private and public, who operate in developing markets and are experienced or interested in applying behavioral sciences to their organizational challenges.

Share This:

Sign up to receive important news and information from Strathmore University Business School

  • This field is for validation purposes and should be left unchanged.

Global Partners

Twitter Feed

Important Links


Social Media