Colegio BolívarClass of 2024Cali, Valle del Cauca
- "How can we analyze different behavioral economic theories in the motorcycle (Navi) market in Colombia?" with mentor Matei (Working project)
How can we analyze different behavioral economic theories in the motorcycle (Navi) market in Colombia?
Started June 23, 2022
Abstract or project description
Bounded rationality Endowment effect Default Choice overload The Nudge Framing effect
For my project I want to test out the theories stated above in the Motorcycle market in Colombia. Specifically in the Navi market which is a customizable motorcycle and scooter hybrid by Honda that can be personalized. My plan is to work with Honda to perform different studies using their website and questionnaires to see how changing different aspects such as the default, number of options, and nudges, affect people's decisions. There have also been different studies already done at Honda that show the success of this motorcycle which I could connect to the Endowment effect.
Study 1 (Framing effect): In this study I plan on analyzing how the framing effect plays a role in the decisions people make when faced with the same situation, just framed differently. To apply this specifically in the Navi motorcycle sales I plan on offering two options. One would be to present a motorcycle without any accessories and sell the accessories on the side with an additional cost. The other option would be to present the motorcycle with the accessories already included in it, but at a higher price (added price of the accessories). We would analyze which way sells more motorcycles, if we sell the motorcycle and accessories separately, or if we sell them together.
Study 2 (The Nudge): Another study that I could do would be to analyze how adding a nudge to a certain color or model of motorcycle affects people's decision making. This could be done by labeling a certain type of color or model as “popular” to see if this nudges people into choosing that certain type of color or model. This could be done in a survey.
Study 3 (Default): This is another study that could be done via a survey where people are asked to design their customizable motorcycle. In the survey we could play with the default color option to see how this affects the decisions of people when deciding the color of their motorcycle, since it is personalizable.
Study 4 (Product Placement): We could explore how product placement affects the consumers decision making by using the virtual store (https://motos.honda.com.co/live-store) in the Honda website. We could use a heat map to see where people are most dragged to in the store in relation to where the products are located.