Emotional Economy - definition, new value-creation trends

EMOTIONAL ECONOMY
80/20 Principle of the Emotional Economy
Around 80% of our decisions - including the most important life choices - are made by emotions, desires, and sensations. Around 20% of our decisions are rational.

Emotional economy refers to the concept of using emotions as a currency in interactions, particularly in the context of how people can influence each other's feelings and experiences. This can include the emotional exchanges that occur in social interactions, as well as the development of emotionally intelligent technologies that enhance human-machine interaction.

Emforgaphics
Emotional Marketing
"... I'll never forget how you made me feel."

"Emotional Economics unveils a world where the heart and mind collaboratively steer the ship of consumer choices. It's a realm where stories sway decisions, feelings fuel finances, and where understanding emotions isn't just empathetic—it's economically essential."

"The emotional economy refers to an ecosystem that encompasses emotionally intelligent devices and software, significantly altering human-machine interactions. This concept also connects to broader research interests in how emotions and affects play a role in various economic and social interactions."

AI-impacted shift to Emotional Economy
AI is significantly impacting various aspects of society, including enhancing productivity, improving healthcare, and influencing economic, legal, political, and regulatory frameworks. Its transformative nature is expected to bring about both positive changes and complex challenges that need to be addressed.

"The book argues that AI is rapidly assuming a larger share of thinking tasks, leaving human intelligence to focus on feeling. The result is the “Feeling Economy,” in which both employees and consumers emphasize feeling to an unprecedented extent, with thinking tasks largely delegated to AI."

***
Travel
Moving Beyond Experiences
The ExperienceEconomy has shaped how we think about travel and services - emphasizing doing, discovering, and participating. It’s been about creating memories, from exploring hidden gems to culinary discoveries 👩🏻‍🍳

But the Emotional Economy takes it a step further. Instead of focusing only on the activity, it’s about connections, feelings, and moments that resonate deeply. Think of experiences like watching an eclipse with strangers who suddenly feel like lifelong friends, contributing to a local community, and leaving with more than just memories - a sense of belonging

Improving user experience is important to most companies, designers, and creators when creating and refining products because negative user experience can diminish use of the product and, therefore, profitability. User experience is subjective. However, the attributes that make up the user experience is objective.