WHEN TALKING ISN’T ENOUGH

Ever heard of the nudge theory?

This concept puts a tag on influences that preserve freedom of choice without engaging the influences. Nudge is a concept that is increasingly being used in Public Relations and marketing.

Behavioural economist Richard Thaler and law scholar Cass Sunstein popularised the term ‘nudge’ in a 2008 book of the same title.

‘Nudge’ is based on research by behavioral economists who discovered, people can be steered towards superior decisions for themselves – and society – by changing the way choices are presented. The idea behind this strategy is to cleverly  influence behavior with targeted nudges rather than more red tape.

This concept has gained momentum in different sectors affecting our every day lives, be it the the public health or the private sector. Deep inside every corporate brand there’s a team thinking up ways to ”nudge” you to behave differently without you even knowing it.

“Nudges are ways of influencing choice without limiting the choice set or making alternatives appreciably more costly in terms of time, trouble, social sanctions, and so forth. They are called for because of flaws in individual decision-making, and they work by making use of those flaws.” (Hausman & Welch 2010, 126)

This strategy plays a crucial role in influencing citizens towards a more positive path pushing under the rug negative aspects of the game. Supermarkets and grocery stores

 use them all the time in the guise of sales, specials, introductory offers and two-for-one deals. Often simple strategies – such as breaking the cost of a good or service into small portions – can be effective. Notice how they place candy and other tiny attractive items at the close to cash counters?

Research into consumer behavior is constantly uncovering new and more sophisticated nudges for businesses to try.

Researchers at Cornell University’s Centre for Hospitality Research found that removing dollar signs from menu price lists (20 instead of $20) in an upmarket New York restaurant increased sales. Another study found that items at the beginning, or the end, of a menu category list were up to twice as popular as when they were placed in the centre of the list.

It’s a fascinating strategy that can be used in so many different ways.

Experienced it? I’m sure you have.

– Juhi