Home / Current Issue / Paper 1722115
The Role of Behavioral Economics in Sales Strategies: How Cognitive Bias, Not Just Product Value, Shapes the Buying Decision
Subject area: Management and Commerce · Area of research: Behavioral Economics
DOI: https://doi.org/10.64388/IREV10I2-1722115
Abstract
Ask a sales manager what drives a customer to say yes, and most will give you some version of the same answer: the customer weighed the price against the value, decided it was a good deal, and bought. This is a comfortable story because it is tidy. It is also, according to a large body of behavioral economics research going back to the 1970s, wrong far more often than sales training manuals like to admit.
References
[1] Ariely, D. (2008). Predictably Irrational: The Hidden Forces That Shape Our Decisions. HarperCollins.
[2] Atticus Li. (2026). The decoy effect: The pricing-page tactic that doesn't replicate. Retrieved from atticusli.com.
[3] Blue Monarch Group. (2024). Applying behavioral economics: Loss aversion in sales negotiations. Retrieved from bluemonarchgroup.com.
[4] Breakcold. (2025). What is behavioral economics in sales? (Explained with examples). Retrieved from breakcold.com.
[5] Cialdini, R. B. (1984). Influence: The Psychology of Persuasion. William Morrow.
[6] DataDab. (2024). How to use decoy pricing to boost your SaaS sales. Retrieved from datadab.com.
[7] FasterCapital. (2025). Using the decoy effect to boost sales: A pricing psychology tactic. Retrieved from fastercapital.com.
[8] GetMonetizely. (2025). The decoy effect: How strategic pricing tiers can maximize revenue. Retrieved from getmonetizely.com.
[9] Global Business & Economics Journal. (2025). Behavioral economics and retail pricing strategies. gbej.org.
[10] Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291.
[11] Lead Alchemists. (2025). The decoy effect in marketing: Description, psychology, and examples. Retrieved from leadalchemists.com.
[12] Loss Aversion and Anchoring Effect: A Review of Behavioral Economics. (2025). Proceedings of ICEMGD 2025 Symposium.
[13] Loss Aversion and Its Behavioral Implications in Economics and Market Strategies. (2025). ResearchGate preprint.
[14] Pricer24. (2025). The decoy effect: What it is and how it works in e-commerce. Retrieved from pricer24.com.
[15] Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99-118.
[16] Sybill. (2026). Loss aversion in sales: The complete psychology guide for 2026. Retrieved from sybill.ai.
[17] The Conversion Bible. (2025). The decoy effect: How to influence Shopify purchase decisions. Retrieved from theconversionbible.com.
[18] Thaler, R. H. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior & Organization, 1(1), 39-60.
How to cite this paper
@article{1722115,
author = {Dr. Ashutosh Khatawkar},
title = {The Role of Behavioral Economics in Sales Strategies: How Cognitive Bias, Not Just Product Value, Shapes the Buying Decision},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {368-378},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1722115.pdf},
abstract = {Ask a sales manager what drives a customer to say yes, and most will give you some version of the same answer: the customer weighed the price against the value, decided it was a good deal, and bought. This is a comfortable story because it is tidy. It is also, according to a large body of behavioral economics research going back to the 1970s, wrong far more often than sales training manuals like to admit.},
month = {August},
doi = {https://doi.org/10.64388/IREV10I2-1722115}
}