Self-aware Companies Win… BIG

The Gallup Organization has identified some interesting flaws in modern economic theory. Research indicates that false assumptions about human behavior have generated serious discrepancies between accepted theory and why people buy. The delta between the two makes a difference between companies who win and those who fail, or at best, accept mediocrity. Irrational Decisions… Us? Specifically, classical economic theory says that people look at a set of data (large or small) and make rational decisions. And yet, the Gallup research shows that approximately 70% of economic decision making boils down to emotions. That means only about 30% of the decisions we make line up with the classic economic model. Neruoscientific evidence supports Gallup’s findings. According to How We Decide,the rational brain maxes out at about 7 pieces of data. As a result, using the rational brain when making complex decisions…