Belief Systems, Religion, and Behavioral Economics

Book excerpt: Religion is a topic that businesses often ignore, in spite of 70% of the world being religious. Many do not realize (or resist) the idea that religion is a key contributor to a consumer’s core values, which then contributes to consumption decisions, voting practices, reaction to pro social messages and public policy, as well as donating behavior. The field of behavioral economics discusses how various social and cognitive factors influence economic decisions, which encompass consumer decision making, but doesn’t incorporate religion as an influence on economic decision making. This book provides one of the first comprehensive investigations into the relationship between religion and behavioral economics. The basic premises of the major religious affiliations are reviewed, and the authors bring to life prior research on religion and behavioral economics with an emphasis on how this research can help practitioners to improve business practices.