Strategic Mistakes Companies Make by Overlooking Behavioral Science - Dr. Manoj Thomas

Dr. Manoj Thomas, Sabanci Professor of Management & Marketing and Associate Dean of NYC Initiatives at Cornell SC Johnson College of Business, explores how behavioral science shapes business strategy, and why overlooking it can lead to critical strategic missteps that put a company off course. In this engaging episode of Business Talk, host Deepak Bhatt sits down with Dr. Manoj Thomas, Sabanci Professor of Management & Marketing and Associate Dean of NYC Initiatives at Cornell SC Johnson College of Business, for a rich exploration of how behavioral science quietly governs our economic decisions. Dr. Thomas unpacks the psychology behind everyday phenomena, from why $2.99 feels dramatically cheaper than $3.00 (the left-digit anchoring effect), to how precise pricing like $500,250 reduces negotiation compared to a round $500,000, to the fascinating "pain of paying," where cash purchases trigger more deliberate spending while mobile payments fuel impulse buying. He also reveals how political ideology shapes negotiation behavior conservatives feeling a personal duty to negotiate, while liberals often view fair pricing as the seller's responsibility. Broadening the lens to AI, Dr. Thomas highlights a striking paradox: while nearly all AI innovation originates in the West, Eastern countries with collectivist cultures show far higher adoption of AI-branded products. He closes with a timeless reminder from Peter Drucker, "The main purpose of a business is to create a customer" - urging executives to anchor every strategic decision in genuine customer value creation. This podcast is brought to you by Global Management Consultancy. For more information, please visit www.globalmanagementconsultancy.com. Disclaimer: A. The background music used in this video is the property of its respective developer and is protected by Copyright. Although it is a free version, Business Talk, Global Management Consultancy and Deepak Bhatt do not hold the rights to this music. B. Dr. Manoj Thomas offered thoughtful perspectives from his acclaimed book, “Why People (Don’t) Buy: The GO and STOP Signals”, in his conversation on the Business Talk podcast channel. The uploaded video contains copyrighted material; therefore, any modifications to graphics, music, or the presence of the author or host are strictly prohibited.