nudge marketing thesis

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The business potential of nudge marketing: investigating the impact of nudge marketing on people behavior from french practitioners’ point-of-view

Platel, alexandre (2023).

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The Journal of the NPS Center for Homeland Defense and Security

Putting the Public in Public Safety: Nudging a Safer Community

By Paul Pazen

Paul Pazen's thesis

– Executive Summary –

This research paper, Putting the Public in Public Safety: Nudging a Safer Community , builds on existing nudge campaign research to identify and implement a local nudge campaign to assess nudge’s overall efficacy and practicality as an alternative means to increase public safety by decreasing preventable crimes. This thesis starts with a review of the literature on marketing campaigns, including cost implications to understand the full spectrum of crime prevention strategies across all levels of criminal activity and associated direct and indirect costs. This research paper further outlines how law enforcement has integrated social media marketing when sending messages about preventable crimes to the largest public audience possible.

Chapter I, the sections about the research question and the literature review, includes information concerning the marketing campaigns and the cost implications of crime prevention strategies across the criminal justice spectrum of victimization and police services. It also discusses the research design. The nudge campaign is designed to emphasize the benefits of social behavior change in a community through a geographical social media platform and messaging crime prevention behaviors to create safer communities.

Chapter II brings into focus the history of social marketing and the nudge approach, with definitions and examples of social marketing. Nudge marketing expands on the evolution of nudge campaigns, as the multi-disciplinary applied science of human behavior was brought to the world’s attention in 2008 by Richard Thaler’s and Cass Sustein’s nudge theory, or “choice architecture.” The section on nudge for public safety provides proven nudge campaign for increasing protection of property and the general public’s safety. The section about nudge and social media illustrates the incorporation of choice architecture through positive behavior messaging into current law enforcement social media platforms.

Chapter III presents nudge case studies to identify and review successful nudge campaigns in both the United Kingdom and the United States. This examination serves as a foundation for both public and private sector nudge marketing strategies. Nudge examples in the United Kingdom include the government’s attempt to increase community engagement and shift the balance of governance by encouraging community members to be more active in building an improved society through choice architecture also known as nudge campaigns. The formation of behavioral insight teams helped to disperse political power and social responsibility to local communities instead of engaging in centralized control. The United Kingdom addressed a gap in the traditional criminal justice approach around the focus on offenders of crime. One of the nudge strategies enhanced the community’s role in restorative justice principles. An examination of nudge campaigns in the United States found some subtle differences in its approach to implementing choice architecture or nudge strategies. The main difference is who implemented these types of approaches. In the United Kingdom, the government established a specific department to advance nudge methodologies throughout different parts of the administration. The United States relied primarily on the private sector and individual public sector agencies to explore distinctive nudge tactics. Utilities and health care organizations led the way in designing methods to reduce energy and water consumption, as well as increase vaccination and organ donation rates. This thesis also investigated a successful nudge recruiting program designed to expand diversity in a local law enforcement agency.

Chapter IV describes the specific steps undertaken by the Denver Police Department of the City and County of Denver in the planning, design, implementation, and analysis of a longitudinal study in public safety and preventable crimes. Denver’s Nudge Campaign shares the theories, approaches, and findings of nudge campaigns conducted in three of Denver’s neighborhoods. The department identified and selected a professional marketing organization with experience in choice architecture. The nudge content of still imagery and short video clips was designed around theft and burglary mitigation. Denver’s “Lock Out Crime” nudge campaign was born. These positive crime prevention messages and images were sent to specific neighborhoods using geo-fencing on several social media platforms. Neighborhood #1 received 2.75 positive nudge messages per week. Neighborhood #2 received 5.5 enhanced positive nudge messages per week. Neighborhood #3 received 0 (zero) nudge messages per week. The cost-benefit analysis/return on investment section discusses the total cost of the professionally designed nudge campaign and shows a net positive gain when comparing dollars spent on messaging versus the direct and indirect costs of the crimes likely prevented.

Chapter V concludes by outlining the exploration of different nudge theories and uses these principles to mitigate crime by eliminating the opportunity for certain crimes to occur. A pre- and post-examination of Denver crime data for the three selected neighborhoods revealed the most successful results were achieved with enhanced personal or relatable messages delivered with higher frequency. This thesis suggests implementing skillfully designed nudge strategies may assist in preventing certain crimes and inspire a higher number of diverse candidates to join law enforcement, which will likely enhance overall public safety.

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• Published: 06 October 2023

How nudges and marketing, frame time preference “for your own good”: a behavioral model

• Anne Corcos 1  

Humanities and Social Sciences Communications volume  10 , Article number:  652 ( 2023 ) Cite this article

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Marketing and nudges rely on choice framing to « do you good »: whether encouraging you to indulge in the pleasures of a pastry (marketing) or to save for retirement (nudges). What sets them apart? This article makes a threefold contribution in understanding their differences. First, it shows that marketing and nudges differ in their interpretation of “your interest”. Marketing emphasizes immediate gratification and succumbing to temptation, while nudges prioritize our future well-being. Second, this difference manifests itself in the role of time preference . Marketing exploits our lack of self-control to influence behavior, whereas nudges help individuals resist the lure of immediate rewards. In doing so, nudges overcome deep-rooted behavioral and neural mechanisms. Finally, the article develops a behavioral model common to marketing and nudges that shows how they use similar behavioral tools to promote and mitigate time preference, respectively.

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Introduction

Just as candy is intentionally placed at the checkout counter of a grocery store to encourage purchase (and consumption), an accessible, well-lit, clean staircase encourages people to take the stairs instead of the elevator. The first example of choice framing is called marketing, while the second is called a nudge. What makes them different?

The AMA defines marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, marketers, and society at large”(Gundlach and Wilkie 2009 ). In this article, we focus on persuasive marketing techniques of choice framing that involves organizing options and framing the decision environment to influence choice. For example, the localization of items on shelves influences consumer attention and purchase decisions (Chandon et al. 2009 ; Gidlöf et al. 2017 ). Similarly, the framing of a promotion in terms of percentages or cents (DelVecchio et al. 2007 ) or of a product outage – out of stock, sold out, or unavailable – (Peterson et al. 2020 ) influences consumer choice. By carefully framing the choice, marketing urges us to buy that cake, watch those videos endlessly on the sofa, and give in to the temptation to buy.

Nudges, on the other hand, organize choices to help us resist chocolate, tobacco, and alcohol, to exercise , and to save for retirement. Nudges are subtle interventions or techniques that aim to influence people’s decisions and behaviors in a predictable way while respecting their freedom of choice (Sunstein 2018b ; Thaler and Sunstein 2008 ). They represent a departure from the way economists study choice and decision-making, both in terms of their theoretical hypotheses and their tools . Drawing on principles from behavioral economics and psychology, nudges take advantage of cognitive biases, heuristics and social influences (Hansen 2016 ). They typically involve small changes to the decision-making environment, or in the way choices are presented to make certain options more appealing, salient, or easier to choose without eliminating alternatives.

The microdonation nudge is a compelling example. Barriers such as limited financial resources, aversion to administrative procedures, and forgetfulness often impede charitable giving (Castillo et al. 2021 ). Reducing the social distance between donors and recipients has traditionally been an effective approach to encouraging giving. Indeed, individuals have been shown to be more likely to contribute to causes related to the misfortunes of their friends or relatives (Small and Simonsohn 2008 ) or when there are similarities between themselves and the victims or the cause (Loewenstein and Small 2007 ). The microdonation nudge represents a significant departure from this principle. It suggests that consumers round up their purchases to the nearest dollar and donate those few cents to an organization (Kelting et al. 2019 ). This nudge encourages frequent microdonations rather than periodic contributions of larger amounts. There is no long-term commitment, no need for administrative formalities, and the effort required is minimal. The associated costs (money, time, mental burden) are minimal, and micro-donors feel satisfied and proud of their gesture.

The use of nudges is now widespread, and their applications are myriad. Two classes of nudges can be distinguished based on their intended beneficiaries . Some nudges, such as the microdonation nudge described above, are designed to induce pro-social behavior. Governments and associations use them to encourage blood donations (Stutzer et al. 2011 ) and flu vaccinations (Patel 2018 ). Others are designed to guide people toward decisions that are in their best interest and consistent with their long-term goals and well-being as judged by themselves (Thaler and Sunstein 2008 ). These pro-self nudges are used to help people quit smoking, reduce alcohol consumption, exercise, or lose weight (Vlaev et al. 2016 ).

The article focuses on pro-self nudges and examines their relationship to marketing choice framing. Choice framing has long been a marketing tool to encourage purchase. It has proven effective in particular in retail strategies to influence purchase decisions by manipulating product assortment and display (Mou et al. 2018 ), in-store environment (Bawa et al. 1989 ), or sensory cues (Helmefalk and Hultén 2017 ). Rather, it is only recently that economists have begun to consider the effect of how choices and information are presented on decisions (Congiu and Moscati 2020 ). Prior to the influential work of Kahneman and Tversky ( 1979 ) or Thaler and Sunstein ( 2008 ), economists generally did not recognize the potential effect of price or product display on consumer purchasing decisions. Now, with nudges, are economists simply rediscovering well-known marketing techniques? If not, what are the differences between choice framing in marketing and nudges – other than the fact that marketing is a whole and ancient field of research, while nudge theory is a specific and rather recent theory? These questions are important in the academic debate as there seems to be some confusion and differing interpretations of the terms “nudges” and “marketing”. Some authors, such as Cheung et al. ( 2021 ) and Singler ( 2015 ), define “nudge marketing” as the use of choice framing for marketing purposes, primarily focused on increasing sales. In contrast, others (Guerassimoff and Thomas 2015 ; Kraak et al. 2017 ; Lee et al. 2020 ) describe “nudge marketing” as choice framing that prioritizes the best interests of the individuals being nudged, often promoting healthier or more sustainable consumption.

The nudges vs. marketing classification of choice framing is also relevant for practitioners. Nudges have gained a positive reputation as catalysts for virtuous actions while respecting individual autonomy and choice (Sunstein 2017 , 2018a ; Sunstein et al. 2019 ). Not surprisingly, companies are tempted to use them to increase their sales. However, when Zara offers to recycle old clothes while you shop, the question is whether this is really a nudge or more of a marketing strategy. Footnote 1 Similarly, is a choice framing that encourages the purchase of a smartwatch as a means to exercise – using features such as step counting, heart rate monitoring, and sleep quality assessment – really a nudge? Misrepresenting some marketing strategies as nudges carries some risks. It can backfire on the company if consumers feel manipulated or coerced into buying a product by misleading nudges. Moreover, if individuals perceive that the private company is putting its financial gain ahead of the public good, trust in the nudge concept as a whole may be compromised, undermining the ability of governments to implement nudges by making their use in public policy ineffective or counterproductive.

Drawing a clear distinction between nudges and marketing choice framing is therefore an important, yet complex, task. Although both frame the choice to influence the decision, the above definitions of nudges by Sunstein ( 2018b ), Thaler and Sunstein ( 2008 ), and Hansen ( 2016 ) emphasize three elements that can be contrasted with marketing choice framing: the tools , the theoretical underpinnings , and the beneficiary of the choice framing. While nudges rely primarily on choice framing, marketing encompasses a broader set of tools and techniques to influence choice: audience research, segmentation, and marketing mix (Borden 1964 ; Kotler 2012 ). Theoretical underpinnings also differ, with nudges rooted in cognitive biases and departures from standard economic theory, while marketing draws from consumer psychology and related disciplines without a normative or rational decision-making model (Kotler 2012 ). Finally, the beneficiary of the choice framing distinguishes (pro-self) nudges, which aim to enhance the nudgee’s well-being, from marketing, which primarily seeks to increase the seller’s profits (Congiu and Moscati 2022 ).

However, these criteria are often not sufficient to confidently classify a choice framing as a nudge or marketing. The tool criterion does not allow for a distinction between the two, as both approaches use subtle changes in the environment or messages to shape behavior. They use similar strategies, such as appealing to social norms (x% of consumers found their skin more hydrated after using the product vs. x% of your peers successfully quit smoking), setting defaults (default tacit renewal subscription vs. default allocation to a retirement fund), or emphasizing salience (highlighting candy vs staircase) to influence decision making. Moreover, regardless of their assumptions about individual rationality, nudges and marketing draw on theoretical insights from psychology. Both tap into emotional processes and recognize that people often rely on heuristics, or mental shortcuts, rather than full information processing, to make decisions. Finally, distinguishing between nudges and marketing based on the intended beneficiary of the choice framing does not provide a clear distinction either. Both claim to benefit individuals, albeit in different ways. Through a well-designed choice framing, nudges aim to promote behaviors that are in the individual’s best interest (e.g. healthier habits). Marketing, on the other hand, seeks to create positive consumer experiences, such as the thrill of purchasing a new product or the pleasure of indulging in a favorite snack.

Our research contributes to the ongoing debate on the distinction between marketing choice framing and (pro-self) nudge framing in three different ways. First, with the beneficiary being the chooser, the article shows that a difference between nudge and marketing lies in their understanding of “the chooser’s interest ”. This question is related to the debate over the meaning of the best interest – known in the nudge literature as the “better off as judged by ourselves” criterion (Hansen 2016 ; Thaler and Sunstein 2008 ). The extensive literature on this topic (Lades and Delaney 2022 ; Sugden 2018 ; Sunstein 2015 , 2018a ) highlights its complicated and intricated nature: does ensuring that individuals are “better off” mean prioritizing their ex ante or ex post preferences (preferences before or after being framed with a green nudge)? Footnote 2 Their first-order or second-order preferences (disliking exercise versus wanting to enjoy it)? Their reflective or impulsive preferences (prioritizing health versus indulging in cake)? For marketing, “your best interest” is about pleasing yourself and giving in to immediate temptation (buying and consuming that cake or that glass of wine), whereas nudges are about “your future best interest” (being healthy). Marketing seems to target (though not exclusively) impulsive preferences, while nudges are more likely to target reflective preferences. However, this categorization does not fully capture the essence of their difference. We show that, to be operational, it requires a complementary criterion – implicit in particular in the reflective versus impulsive preferences dichotomy: the role and place of time preference (“the preference for immediate utility over delayed utility”) (Frederick et al. 2002 , p. 2) in the decision. Footnote 3 Marketing exploits time preference to influence behavior (and get people to buy), whereas nudges get people to resist the pull of immediate rewards (and get them to save or exercise). Nudges help people trade immediate pleasures (eating that piece of cake) for greater delayed rewards (being healthy). In other words, they help people make the choices they would make if they did not lack self-control (Congiu and Moscati 2022 ; Thaler and Sunstein 2003 ). Footnote 4

The third contribution of the article is to develop a behavioral model (see Fig. 1 ) common to nudges and marketing that shows how they use and combine the same behavioral tools (column 2 in Fig. 1 ) to achieve intermediate goals (see column 3 of Fig. 1 ), which ultimately lead to their final goal (see column 4 of Fig. 1 ): purchase (marketing) or long-term well-being (nudges).

In this figure, the behavioral model shows how nudges and marketing use and combine the same behavioral tools (column 2) to achieve intermediate goals (column 3), which ultimately lead to their final goal (column 4): purchase (marketing) or long-term well-being (nudges).

The remainder of the article is organized as displayed in Fig. 1 . Section 1 shows what makes time preference a deep-rooted behavioral and neural mechanism. Section 2 introduces the behavioral tools used by nudges and marketing to guide decision making. Section 3 develops the common behavioral model for nudges and marketing. Section 4 concludes.

Time preference is a deep-rooted behavioral and neural mechanism

Economists have long been interested in the drivers of long-term rewards. According to Samuelson’s ( 1937 ) model, intertemporal decisions are the result of a trade-off between present and delayed – but higher – utility. The longer the time horizon and/or the higher the discount rate (the rate used to determine the present – discounted – value of future outcomes) (Frederick et al. 2002 ), the higher the compensation required. However, the observed discount rate and/or compensation required for the choice of delayed payoff is high, even unrealistic (Frederick et al. 2002 ). A first explanation for this is that forgoing immediate consumption for a higher expected benefit in the long run is difficult because the long run (and therefore its reward) is uncertain . Will quitting smoking or exercising really prevent us from getting cancer or diabetes? Ellsberg ( 1961 ) shows that people are averse to uncertainty : the possibility that one’s efforts may not produce the expected result is a source of pain, discouragement, and frustration that makes the short-term option all the more attractive. Moreover, the preference for immediate reward may also reflect an aversion to a delayed outcome (Rotter 2021 ). The work of Keren and Roelofsma ( 1995 ) compares the effects of uncertain and delayed rewards on preferences for immediate rewards. The authors find that when the immediate outcome is also uncertain, individuals show much less preference for it than when it is certain. Similarly, Rachlin, Raineri, and Cross ( 1991 ) show in their experiments that subjects discount an uncertain and a delayed reward in the same way. Choosing the long-term option requires therefore overcoming aversions and pains that are generally not taken into account when calculating the discount rate.

However, the decision to consume today rather than tomorrow is not solely the result of a short-term/long-term trade-off. A complementary approach emphasizes the suffering caused by giving up immediate consumption, regardless of whether we can have more tomorrow. It focuses on the displeasure and the suffering experienced in giving up present consumption in isolation (giving up this cigarette). For Senior ( 1836 ), cited by (Frederick et al. 2002 ), it is one of the most painful efforts of the human will. Footnote 5 Our pain-avoidance behavior again favors the short-term option.

Neuroscience adds a final brick to the edifice that supports the fact that delaying gratification is an almost unbearable choice. Recent evidence suggests that, unlike immediate rewards, delayed rewards do not always activate the neural reward system . McClure et al. ( 2004 ) show that only immediate reward activates the limbic system, while delayed reward activates the areas of the cortex associated with deliberation and planning processes. The findings of Luo et al. ( 2009 ) support this view. According to the authors, when subjects are faced with two rewards (one immediate, the other delayed) between which they are indifferent, the neural excitation is greater for the immediate reward. The present and the future do not seem to be fighting on equal terms. The challenges that nudge and marketing face are not similar: while giving in to temptation is immediately rewarding, the path for nudges is more challenging because postponing or abstaining from consumption does little to activate people’s reward circuitry.

A choice framing that steers choice toward the long-term option requires overcoming the uncertainty inherent in the long-term choice, activating the reward circuitry, and reducing the frustration associated with forgoing immediate pleasure. Nudges address all of these challenges, making them a methodological breakthrough. The behavioral model developed below describes how nudges and marketing use the same behavioral tools to achieve rather antagonistic goals.

Behavioral tools of choice framing

Nudges and marketing combine three behavioral tools to influence time preference (see Fig. 1 ): prospect framing (2.1), choice bracketing (2.2), and editing framing (2.3). They draw on the findings of behavioral economics, particularly prospect theory (Kahneman and Tversky 1979 ).

Prospect framing

Individuals evaluate situations relative to a reference point that translates the outcome of the decision into a gain or loss. Different reference points can lead to different decisions (De Martino et al. 2006 ; Kahneman et al. 1991 ). Footnote 6 In the specific case of time preference, framing means choosing the reference point (presence or absence, cake visible or hidden) that is most likely to push the individuals toward the target behavior (immediate or delayed consumption) or discourage them from deviating from it.

The law of approach and avoidance states that “we move toward pleasure and away from pain” (Sharot 2017 , p. 61). In neural terms, this means that our brains are wired to act in pursuit of pleasure or gain, whereas displeasure, danger, or loss tend to paralyze us into inaction (Guitart-Masip et al. 2012 ; Sharot 2017 ). To persuade people to act in the direction of the target behavior, the brain mechanisms that control movement suggest dressing up the target behavior with a gain . Highlighting the dangers of the current behavior would only reinforce inertia (much like a rabbit in the headlights of a car). To this end, prospect framing suggests choosing a reference point such that engaging in the target behavior (e.g. quitting smoking) will result in a (monetary) gain . On the other hand, to discourage the individual from taking action (e.g. turning away from the current virtuous behavior of sobriety), it is more effective to emphasize the losses that would result from abandoning the behavior (days of sobriety, self-esteem, badges). This prevents the individual from changing course by inhibiting the brain’s motor circuitry. Another way is to make the alternative behavior repulsive and emphasize its dangers (e.g., no future pension). In both cases, the decision is framed in such a way that action is associated with loss .

Choice bracketing

Choice bracketing is the process of forming sets of individual choices (Read, Loewenstein, Rabin, et al. 1999 ). The consequences of choices that belong to the set are considered in the decision. The consequences of choices on decisions outside the set are not considered. If the set consists of a small number of choices (e.g., the decision to smoke one cigarette and its minimal health consequences), the decision is narrowly bracketed. If, instead, the set consists of 7,300 decisions to smoke a cigarette and the consequences of those 7,300 cigarettes on the person’s health, then the decision is said to be broadly bracketed. Footnote 7 A bracketing effect occurs when the decision (to smoke or not smoke a cigarette) differs depending on whether the decision is narrowly or broadly bracketed. Narrow bracketing encourages enjoyment of the cigarette because it removes the deterrent effect of the risk. In contrast, broad bracketing and consideration of the negative health consequences of smoking may encourage quitting (or discourage starting). In this example, the bracketing influences the decision.

When choosing between two options, people naturally tend to bracket their choices to focus on only part of the choice (Read et al. 1999 ; Simon 1990 ). However, bracketing can also be used intentionally to bias a decision toward one option over another. Bracketing can be applied to intertemporal decisions (i.e., whether each decision is made one at a time, independently of other decision, or by considering the consequences of all the possible decisions), as well as to simultaneous or sequential choices (i.e., choices among several alternatives presented one after another or simultaneously). Intertemporal utility maximization is a good example of broad bracketing. Decisions based on wealth variations or relative wealth, on the other hand, are narrowly bracketed. Each choice is made in isolation rather than in terms of absolute wealth. Similarly, myopic decisions are the result of narrow bracketing.

Editing framing

The edition of outcomes refers to how individuals process multiple outcomes, x and y, by integrating them v(x + y) or separating them v(x) + v(y), where v is the value function. Thaler ( 1985 ) suggests that if individuals behave according to prospect theory, they will feel better about separating gains (e.g., a salary and a bonus) than about integrating them. In contrast, losses (e.g., insurance costs and monthly loan payments) should be integrated rather than separated to be less painful. Footnote 8 The way editing framing influences decision making is explained by the shape of the value function (Kahneman and Tversky 1979 ): concave for gains and convex for losses, with a steeper slope for losses than for gains. Editing framing uses a separating or integrating operation depending on the goal: to promote the target behavior, editing framing is designed to induce a separation of the gains resulting from the target behavior and an aggregation of its costs. On the other hand, the behavior to be avoided is framed to induce an aggregation of the gains and a separation of the associated pains.

Bracketing can be used to influence the tendency to aggregate or separate outcomes. Narrow bracketing of choices (e.g., having as many choices as cigarettes to smoke) promotes segregation of outcomes. Similarly, by focusing attention on the present moment, narrow bracketing makes the effort involved (e.g., training daily for a run) seem smaller than it really is.

A behavioral model of time preference management

The behavioral model describes how nudges and marketing use intermediate goals (lowering the cost of the target behavior, making it straightforwardly rewarding, and leveraging pain avoidance behavior) to overcome our tendency to seek immediate gratification and to exacerbate impatience and lack of self-control, respectively (see columns 1 and 3 in Fig. 1 ).

Making the target behavior as painless as possible

The framing of choice has proven highly effective in reducing the pains (monetary payment or effort and renunciation of pleasure) and making them less apparent. It also manages to sometimes turn them into pleasurable experiences.

How marketing framing reduces the pain associated with payment

Marketing uses choice framing to reduce the pain associated with payment, which can hinder sales. To this aim, delaying the pain to a later date by offering staggered or deferred payments can be effective. Similarly, deferred debit cards allow customers to spend money even if they do not have the funds at the time of purchase. Staggered and deferred payments are a narrow framing of choices that isolates the time of consumption from the time of payment. In people’s minds, the pleasure of consumption and the pain of payment are dissociated (the pleasure of the purchase is immediate, while the pain of the price is deferred) which increases the likelihood of consuming.

Even better, marketing has succeeded in turning payment into pleasure through well-designed prospect framing . Promotions increase consumer’s transactional utility by increasing the pleasure of getting a great deal. Footnote 9 Still using prospect framing, a brand can also create an anchoring effect by displaying a suggested price that becomes a reference price in the minds of consumers. The benefits of this framing are twofold. A selling price lower than the suggested price gives the consumer the impression of a bargain (transactional utility). In addition, when associated with high-quality or social status, a high reference price is pleasurable (Plassmann et al. 2008 ; Völckner and Hofmann 2007 ).

In the same way, by highlighting the amount of the discount next to the price, editing framing tricks the consumer into experiencing payment as a gain. The segregation of gains and losses highlighted by Thaler ( 1985 ) suggests that when the gain (rebate) is not enough to completely compensate for the loss (initial price), individuals choose to mentally separate the gain from the loss to feel the pleasure of the gain, and not just the displeasure of a reduced loss. Editing framing can also be effective to facilitate a purchase decision. In the USA and Canada, the price excludes sales tax, which is added and paid at the checkout. The framing has two key effects. The pre-tax price increases the likelihood of purchase by showing a higher pleasure/expense ratio. Moreover, the amount paid at the checkout aggregates the loss (price + tax), which reduces the pain.

Nudges help reduce the immediate pain associated with the target behavior

To mitigate the pains, nudges frame the perspective to reduce the suffering of renunciation.

To help individuals resist temptation, nudges play on the presence/absence of the desired item. By physically hiding what tempts us, nudges change the reference point. The default is now the absence of the desired item and, as a result, the absence of suffering. Hiding or avoiding exposure to enticing items (cakes in the cupboard) and blocking personalized advertisements help individuals resist temptation. Visibility can instead be used to stimulate the consumption of healthy products, for example by placing them at the checkout of supermarkets in place of the sweets currently promoted. Reduction in the size of plates, meal trays and glasses can also be part of a frustration reduction strategy. For a given amount of food, the sight of a full plate is much more satisfying than a half-empty one (Van Ittersum and Wansink 2012 ). Again, prospect framing consists in translating the point of reference towards a standard (e.g., small plate size) which eliminates the appearance of a loss, a lack or a privation and instead suggests an opulence.

The great ingenuity of nudges also comes from narrow bracketing which allows a focus on the present and reduces the suffering associated with effort . Effort looks bearable if it only lasts a day, a week or even a month. The “Dry January” event is based on this idea. Participants are asked to abstain from alcohol for the entire month. Narrow framing makes abstinence not permanent, which encourages people to consider it. At the end of the month, the results on well-being, weight and the wallet encourage participants to carry on their effort and continue reducing alcohol consumption after January (de Visser et al. 2016 ). In addition, nudges can translate a drastic and disproportionate effort into several intermediate objectives in order to make it bearable and concrete. The out-of-reach objective of running a marathon is broken down to make it achievable and therefore rewarding. Narrow framing is designed so that the individual takes a short-term approach. Narrow framing is a “one day at a time” practice.

Making the target behavior immediately rewarding

Although the act of buying is inherently pleasurable, choice framing can amplify the satisfaction and make the purchase irresistible. The approach is less intuitive and the task more difficult for nudges whose goal is to induce a costly behavior.

Editing framing: multiplying the sources of pleasure and immediate rewards

According to Lancaster’s characteristics theory ( 1966 ), people value all the attributes of a good. Successful marketing is about creating the appearance of an abundance of product attributes: the latest robot grates carrots, onions, leeks, zucchini, and turns them into chips, spaghetti, puree. This framing encourages separate consideration of each attribute in the utility function which is valuable because satisfaction increases with the number of attributes considered. When it comes to nudges, however, turning effort into pleasure is a challenging problem. Many nudges leverage editing framing by multiplying the measures of individual success. It has been eased by the popularity of mobile apps. Their positive feedbacks, the congratulations, the encouragement, and the badges induce pleasure by stimulating pride and self-esteem on a daily basis (Eisenberger et al. 2011 ). Similarly, the many measures of effort and therefore of success (e.g., number of cigarettes not smoked, number of days without smoking, money saved, calories burned, miles travelled, number of steps taken, impact on sleep, heart rate) are all sources of gratification that will reinforce the behavior and encourage its adoption over time (T. Luo et al. 2021 ; Naslund et al. 2017 ).

Framing the perspective: making visible the return on investment of small efforts

Prospect framing induces a reference value such that the target behavior is pleasurable and beneficial. The reference value is the behavior that is to be stopped. For example, quitting smoking results in a monetary benefit (money saved) that increases with the number of days of abstinence. Several elements reinforce the effects of this framing. First, acting toward a goal is both pleasurable and rewarding. In addition, the tendency to create mental accounts can be used to enhance the effect (Thaler 1999 ). Mentally allocating the savings to a pleasurable expense rather than to current expenses (food, taxes, bills) may be sufficient to induce individuals to adopt the target behavior. Also, relying on anticipatory utility, individuals can be asked to imagine what they will do with the money saved (Knutson et al. 2001 , 2007 ; Knutson and Greer 2008 ). Finally, feedback can be presented as a rewarding challenge. Rather than relying on loss aversion, this approach draws on the concepts of gamification, the unexpected, and surprise, so that the gain provides satisfaction to the individual (Mamede et al. 2021 ).

A narrow bracketing on pleasure to ensure pains and failures are less apparent

Narrow framing is also an effective tool for emphasizing the benefits of the target behavior and facilitating its adoption. This framing narrows the individual’s perspective to focus on specific attributes of the object, its brand image, its values. By using an abundance of success measures combined with narrow framing, nudges avoid discouragement by not overly punishing accidents along the way. Despite giving in to the temptation of a few cigarettes, the reduction in consumption, health benefits, and financial savings would remain substantial and visible on the app.

Leveraging pain avoidance behavior, impulsivity, and lack of self-control

The inclination of individuals to avoid pain and negative emotions can trigger the adoption of the target behavior as well as it can prevent individuals from turning away from the target behavior. Loss aversion (e.g., losing points, badges, rewards) and fear of disappointment may encourage them to persevere in their efforts.

Marketing: an appropriate prospect framing exacerbates the pain associated with the renunciation of consumption

Triggering impulsivity to leverage aversion to frustration through stimulation of the five senses.

While marketing is careful not to trigger loss aversion (i.e. paying for the purchase), which would have a detrimental effect on the purchasing decision, the same cannot be said of the aversions (regret, uncertainty) and sufferings (frustration, renunciation) that drive the consumer to purchase. To weaken consumer resistance, marketing creates environments that stimulate all five senses. Bakeries diffuse – sometimes artificial – smells of pastries just out of the oven. Ambient music engages our ears and affects consumption behaviors (Andersson et al. 2012 ; Biswas et al. 2019 ). Marketing has understood that closeness and physical proximity go hand in hand with desire (Woelbert and Goebel 2013 ). Targeted products are placed at the checkout or at the head of the aisles to encourage impulse buying. This prospect framing makes physical exposure to the product the reference situation. It highlights a suffering, a lack or a loss as long as the consumer has not decided to buy the product. Presence of product can also be implemented mentally. Commercials are meant to make consumers envision themselves with the product, anticipate the pleasure of its consumption, and eventually give in to temptation. Hassabis and Maguire ( 2009 ) have shown that mental constructions of past, future or imagined events activate common brain areas. Therefore, the anticipation of reward or consumption could activate the same brain areas – the reward circuit – as consumption itself (Bray et al. 2010 ).

Regret aversion: immediacy and temporary offer

Advertising leverages impulsivity and the urge to give in to temptation. Resisting creates a frustration we avoid by making a purchase. Still using prospect framing , marketing techniques take advantage of regret aversion as well. When browsing a hotel website, pop-ups cautioning that “only three rooms are left” or that “12 people are currently looking at the same ad” have no other purpose than to hasten the purchase decision. These are modern versions of traditional sales techniques warning us that other people are showing interest in the apartment we have just visited. The aversion of individuals to any form of suffering (loss, regret, uncertainty) leads them to adopt a pain-avoidance behavior: buying.

Nudges and monetary loss aversion: making the cost of current behavior salient

A loss provides a greater disutility than the utility provided by a gain of the same value (Tversky and Kahneman 1992 ). Therefore, using narrow bracketing and perspective framing , a nudge can be more effective by highlighting the monetary costs associated with the current behavior (e.g., smoking). The non-smoker situation is used as the reference point to underline the losses and dangers incurred by the smoker. A calculator provides, for each smoker profile, the financial expenditure per week, month, year. This framing of perspective can also be used to highlight the dangers of the behavior to be changed: for example, illustrating the health risks associated with smoking by showing images of cancers of the mouth. The resulting negative emotions are intended to deter the behavior insofar as loss aversion and anxiety trigger an avoidance behavior. Moreover, the prospect of loss is also effective in maintaining a status quo or habit. Individuals will persist in their efforts if giving up causes them to lose hard-won badges, applause, and other incentives and rewards from their community. To make new behaviors sustainable, nudges based on fear or dislikes can be remarkably effective.

The behavioral model presented in this article highlights the common tools of nudges and marketing while emphasizing their contrasting goals. It points out that one of the differences between pro-self nudges and marketing is their understanding of “what is good for you”. Pro-self nudges are specifically designed to help individuals prioritize long-term well-being over short-term gratification when making decisions. In contrast, marketing choice framing seeks to induce immediate pleasure through the act of buying and consuming. This difference is reflected in the challenges and motivations that nudges and marketing face. Marketing exploits the brain’s ingrained mechanisms of time preference and lack of self-control to make individuals succumb to temptation. In contrast, nudges strengthen individual willpower and self-control, which requires overcoming attraction to immediate rewards, aversion to immediate effort, and lack of interest in long-term rewards. However, both use framing to modulate the pleasure/pain trade-off in a way that promotes the desired behavior. They minimize the negative aspects (either the monetary cost or the effort or resistance to temptation) associated with the target behavior (either a purchase or health), while providing immediate gratification that activates the brain’s reward circuitry.

By drawing on the two meanings of “your own good” and providing a unified framework for analyzing the underpinnings of choice framing, the behavioral model helps to qualify a choice framing as a nudge or as marketing. According to our model, a choice framing that encourages the purchase of a smartwatch (to exercise) qualifies as marketing. Indeed, wearing a smartwatch that counts our steps is not necessary, let alone sufficient, to exercise. Instead, the choice framing induces purchase and encourages the search for immediate pleasure by reducing the suffering associated with the guilt of inactivity. In contrast, a choice framing that encourages taking the stairs instead of the elevator or riding a bike instead of driving a car qualifies as a nudge. It prioritizes long-term goals (health) over immediate pleasure or convenience by minimizing the costs associated with the target decision.

Understanding the behavioral mechanisms that influence our susceptibility to temptation or our ability to resist it is valuable as it increases our overall awareness of these processes. A first possible extension of this work could be to explore ways to counter or avoid marketing choice framing so that individuals can resist impulse buying if they choose to do so. This could range from shopping on a full stomach, shopping online from a list of products rather than in a store to avoid impulse buying, or to deleting cookies from our browsing history to avoid being reminded of products we have seen and may have been tempted by. A complementary extension might be to study how individuals can use choice framing to self-nudge (e.g., choosing to eat meals on small plates and to hide cakes in the cupboard) to promote long-term choices. Such an approach would be beneficial on several levels. By “self-organizing” their choices, individuals would be empowered to determine what is beneficial to them. It would also make behavior changes their own by fostering self-commitment and self-binding (Beauvois and Joule 2010 ). This would ultimately help make these new behaviors sustainable (Bhattacharya et al. 2015 ; Goldhaber-Fiebert et al. 2010 ) and self-nudges effective . Indeed, a single instance of taking the stairs is not enough to be healthy and nudges do not always have lasting effects (Mertens et al. 2022 ): sustained effort is challenging, and individuals often return to their previous eating and physical activity habits over time (Allcott and Rogers 2014 ; Brandon et al. 2017 ; Ferraro et al. 2011 ; Frey and Rogers 2014 ). Self-nudging could help lead to lifelong behavior change (e.g., consistently choosing the stairs over the elevator whenever possible) and make nudges effective.

https://www.zara.com/fr/en/help-center/ClothesCollectionProgram

An informational nudge providing you with the average energy consumption of a similar household in your neighborhood can induce you to save energy and improve your welfare ex post, without you necessarily wanting to save energy ex ante.

Reflective preferences often involve long-term considerations (saving for retirement, exercising, and eating well to stay healthy). In contrast, preferences associated with impulsivity or lack of self-control are more likely to be about immediate gratification (eating that cake, indulging in that purchase).

Thaler and Sunstein’s ( 2008 ) story about cashews serves as an illustration of a nudge designed to mitigate the effects of our impulsive behavior and limited self-control. In this scenario, the guests feel a sense of relief when the cashews are taken to the kitchen because now they can resist the temptation to consume them all at once. Similarly, a nudge that uses a default savings value to save more tomorrow is designed to control the impulsive spending tendencies of individuals who are often tempted by various opportunities for immediate indulgence (Sunstein 2015 , 2018a ).

In the same way, according to Rae ( 1834 ), the limited capacity of individuals for self-restraint inhibits the ability to defer consumption.

In a prescient experimental example (Tversky and Kahneman 1981 ), the U.S. is preparing to fight an Asian disease that could kill 600 people. Subjects are asked to express their preferences between two alternatives, A and B. The authors show that the subjects’ preference depends on the way the outcomes are formulated. Option B (riskier) is preferred if the outcome is expressed as the number of deaths caused by the disease. However, A is preferred over B if the outcome is expressed as the number of people cured by the treatment.

Following the example made by Read et al. ( 1999 ), 7300 is the equivalent of a pack of cigarettes a day for 10 years.

In other words, it will be more satisfying for an employee to receive a salary and then a bonus than to receive both at the same time: v(salary)+v(bonus)>v(salary+bonus). On the contrary, when it comes to expenses, it will be less painful to pay the loan and the credit insurance together than separately:

v(insurance+credit payment)<v(insurance)+v(credit payment).

Thaler ( 1999 ) defines transactional utility – as opposed to acquisition utility – as the satisfaction that consumers derive from paying less than the fair price they have in mind. Acquisition utility , or consumer surplus , refers instead to the pleasure derived from the acquisition of a good below the consumer’s willingness to pay. Thaler distinguishes therefore between willingness to pay and fair price (for example, the production cost).

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Nudge Marketing: What it is, How it Works, and Examples

There is a better way than discounts and giveaways to attract and retain customers.

Nudge marketing has become the preferred psychological hack encouraging customers to take specific actions.

What is nudge marketing?

Nudge marketing is a strategy that uses psychological biases, and subtle or direct prompts to encourage people to purchase.

A nudge influences a buyer’s decision by leveraging psychological biases , making their choice seem more natural.

Nudge marketing, when done correctly, helps businesses of all sizes, from behemoths like Amazon to mom-and-pop operations, grow their revenues and profits. So be sure to incorporate nudge marketing in your marketing plan and strategy .

Over the past fifteen years, our marketing team has frequently used nudge marketing in campaigns. And we’ve mentored and helped thousands of entrepreneurs, small business owners, and agencies improve their marketing with high-quality design that leverages marketing psychology to influence buying decisions. This guide shares our experience, learnings, actionable insights, and best practices.

How does nudge marketing work?

Nudge marketing helps people make less stressful decisions.

Remember the last time you bought coffee? You could probably choose a small, medium, or large size. The small price difference between the medium and large servings is intentional.

The marginal cost to the coffee shop between selling you a medium versus large size is tiny. But you pay more for a large size.

Because the difference is minor, people often choose the large size, believing they decided independently.

This is nudge marketing at its finest. The coffee shop nudged you to pick the most expensive option because it appeared to offer the best value.

You’re happy because you made a good choice. The coffee shop is satisfied because they earn more money.

Why does nudge marketing work?

People are often irrational when making decisions.

This is normal.

Our subconscious mind uses our experiences and information to influence decisions.

Nudges speed up this process.

A nudge is an intentional, subtle prod that reduces the perceived difficulty or danger associated with a specific action or decision. It’s like a fast route for our minds, and we only notice that we’re less anxious.

Our brain uses  visual and mental signals to make judgments automatically in pursuit of efficiency. We strive to make judgments as quickly and efficiently as possible but never want to look back and second-guess ourselves.

If people didn’t “rush to conclusions,” they’d never make any decisions. Most people want to make quick choices they won’t regret.

Nudging makes choices more intuitive and effortless, ultimately improving the purchasing experience.

But nobody likes being coerced or tricked into making a choice. That’s why nudging must be subtle. Small nudges in someone’s best interest help make decisions feel organic and effortless.

Six nudge marketing examples

Fomo (fear of missing out).

Remember when you failed to take advantage of a valuable opportunity like a 50% discount on a jacket or a chance to attend a concert because you couldn’t get tickets in time?

Subconsciously, people remember their disappointment the next time they encounter another time-sensitive offer.

So, they buy on the spur of the moment because they don’t want to risk missing out on good deals.

The FOMO phenomenon is well known to marketers, who employ it efficiently to generate more sales.

People always want more of what we can’t have.

The scarcity principle plays on these behavioral triggers .

“Scarcity marketing” plays on customers’ fears of being unable to participate in the hottest trend or latest promotion.

Brands use scarcity strategies to boost product value and sales by intentionally limiting the perceived supply or availability.

The brand on the right encourages customers’ immediate purchase by notifying them that others have purchased a dress at a discounted price during the last 48 hours.

Frequently bought together

The term “Frequently bought together” (or “FBT”) is commonly used to describe a curated list of items that have been chosen to increase revenue.

Instead of just listing random items alongside a customer’s selected product, the FBT feature showcases other complementary products.

This nudge tactic is commonly utilized to promote  upsells and cross-sells . By suggesting complementary products, you’re increasing sales and providing more value to the user.

With the help of nudge marketing, Nerdwax can upsell a high-value bundle on its product pages right before the checkout.

Nerdwax specifies what the high-value pack includes and how much money you may save by purchasing it.

A big, bold, yellow call to action makes adding this merchandise to the shopping cart easy.

You may use this tactic in your online shop by including a suggested-buy overlay on the product detail page or the shopping cart before the final checkout screen.

• Try not to be overly aggressive with your upsell tactics, such as displaying a pop-up shortly after the visitor lands on your website.
• Ensure the upsells are tailor-made to the specific item they want.
• Keep your upsell price within an acceptable range.
• Consider offering a discount or other perk to emphasize the value of purchasing the upsell.

Price anchoring

To urge customers in the direction of making a purchase, SkinnyMe uses the price anchor nudge. They display the before and after price reductions for this item.

Customers will be more likely to buy after seeing how much they can save.

This strategy can be used on certain items during clearance sales and other price reductions.

Pro-tips: If you’re going to use a price anchor nudge, here are a few things to bear in mind:

• Make sure the two prices are displayed next to one another.
• The higher price anchor should be crossed out to help clients see the difference between the reduced price and the full price.
• Don’t keep using the same nudge for the same item repeatedly.
• The value of a discount is diminished if it is continuously being offered.
• Give your customers an idea of when regular rates will be reinstated.

Directional cues

Directional cues direct visitors to specific sections of your site, such as a crucial call to action .

Directional cues include an arrow, a model’s gaze, or lines.

IKEA employs a subtle nudge marketing tactic by including a directing arrow on the site, which prompts buyers to click a specific location on the screen.

• All signs should point to your call to action, so make sure it shines out.
• Don’t get carried away; they are only hints, so keep things basic.

Social proof

This strategy plays on people’s inclination to follow the crowd.

People are more inclined to follow if they observe others engaging in similar behavior .

When we are uncertain, in a new or unfamiliar setting, or when there is room for interpretation, we often seek others for behavioral advice. Generally, a person will attribute more validity to a proposition if others agree it is accurate.

Social proof encourages shoppers to purchase.

• Use trust symbols.
• Add numbers or data to demonstrate the success of your brand at every opportunity.
• Showcase positive reviews to illustrate the benefits of your product or service.

The best nudges are subtle. So, when creating them for your business, ensure they’re not distracting or intrusive.

Nudge marketing can help improve your customer’s experience , make it easier for them to purchase, and grow your revenues faster.

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Nudge marketing: examples, definitions, detailed analysis [Guide 2022]

Nudge marketing  is the set of techniques that allow us to push human beings to adopt certain behaviors for marketing purposes. Useful in the context of social marketing, we can also use nudge marketing to encourage behaviors that are detrimental to the person’s interests. These are called “dark patterns,” legion in mobile applications and video games. This article will review the origin of the word nudge, the definition of nudge marketing, and then offer you  many commented examples of nudges used for marketing purposes.

Nudges and nudge marketing: definition

The origin of nudge marketing.

• 5 examples of nudges

6 examples of nudge marketing

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Understanding the nudge theory and nudge marketing requires answering a fundamental question: what predicts a particular behavior? A specific behavior is the result of an intention and an opportunity. Many obstacles can hinder this behavior, including willingness.

This is where nudges come in since they allow us to encourage the behavior by “directing” it. Some people speak of “manipulation,” but we would talk of directed exploitation of the rules of functioning of the human brain.

Nudge marketing uses the brain’s reflexes for marketing purposes, intending to direct behavior in a direction that is beneficial to the company.

The term “nudge” has recently been popularized. Some claim that it first appeared in 2008 in the  eponymous book  by Cass Sunstein and Richard Thaler. This is not true. The term “nudge” has been used in a social marketing context long before 2008, for example, in this  2003 article about changing behavior to achieve environmental goals.

However, the resulting concept of “nudge marketing” seems more recent. Google search trends show that it has been only since 2014 that this term starts to be searched, mainly in France.

Although the term’s origin cannot be traced, Sunstein and Thaler’s book was probably a wake-up call for marketers. They realized that nudges could be consciously used to “steer” behavior in the desired direction.

Therefore, the nudge is the exploitation of a human reflex, deeply rooted in the functioning of the human brain.  Nudge marketing uses these reflexes for marketing purposes to direct behavior in a direction that is beneficial to the company.

Nudges: 5 examples to explain how they work

What better than a few examples to explain what a nudge is? Here are 5 examples of nudges in the field of everyday life. In each case, the nudging technique implemented has allowed modifying human behavior positively.

The story of the Amsterdam toilet is probably the one most associated with the nudges theory. To summarize, printing a small fly at the bottom of the urinals at Schiphol airport (Amsterdam) has considerably reduced cleaning costs. The men are instinctively driven to “aim” at this fly, limiting the amount of soiling outside the urinal.

Musical stairs

The musical stairs in Copenhagen were initially a social experiment. These musical staircases motivated subway users not to take the escalators. Here, the “fun” aspect of the experience encourages users to change their behavior. It is, therefore, a nudge to promote individual movement and health.

Road safety

We have already introduced you to the Icelandic project of 3D crosswalks on this blog . This is also a nudge. The appearance of this crosswalk produces an  instinctive reaction in the driver that leads him to brake . This is precisely the response sought when approaching a crosswalk.

Organ donation

The issue of organ donation is discussed in the book by Sunstein and Thaler. They explain that nudge consists in allowing organ removal by default rather than by choice. We thus go from an opt-in to an opt-out, which considerably increases the possibilities of organ harvesting after death. Whereas individuals had to express their consent to be retrieved, it is necessary to express their refusal. The human being is a supporter of the least effort; it is thus the first option that is privileged.

It should be noted that this shift from opt-in to opt-out is also the strategy that the European Commission adopted in the development of the GDPR.

Saving money

In  times of crisis , saving money of all kinds becomes a priority. The theory of nudges can be applied at many levels to reduce consumption and promote frugality at all levels. As in the previous example, all that is needed is to switch from an opt-in to an opt-out. The options chosen in the default situation must be those that promote rational consumption.

This principle can be applied in all aspects of everyday life:

• a percentage of the salary is automatically set aside for retirement, savings… unless the worker instructs otherwise
• the temperature of your boiler is set at the factory to save money (about 7% of gas saved for each degree less)
• the images you send by email are automatically reduced unless you instruct otherwise, thus promoting  technological frugality .

To illustrate the use of the nudges theory in marketing, we offer you some concrete and explained examples.

1) The dark patterns: the nudges that work against your interest

Dark patterns are user experiences that are deliberately poorly designed to prevent the user from making the right choices. In most cases, the cognitive load is too high; the user will opt for the option proposed by the provider, which will not be the most advantageous one. We can, therefore, also talk about “nudge” since the user’s brain will automatically look for the simplest solution.

This site  offers  12 categories of “dark patterns.”  Our favorite? Hiding costs. Stronger than price engineering that  prevents consumers from comparing prices  is AWS. Amazon’s cloud arm has made a speciality of producing unintelligible invoices that avoid any verification. And when it all goes wrong, you’re left with  tens of thousands of dollars in uncontrolled invoices  within 24 hours. Since AWS’s profits are measured by the computing power they provide you, they are not interested in making it easier for you to prevent overbilling.

Another example is subscription-based software licenses. Since software companies realized that it was more profitable to sell subscriptions than perpetual licenses, their revenues have exploded (and  the bills you pay with them ). Publishers, however, go to great lengths to hide them and prevent users from finding them. Yet, there are still alternatives in the form of perpetual licenses in many cases.

2) Algorithms and filter bubbles

We have talked extensively on this blog about  filter bubbles . This theory says that recommendation algorithms progressively lock users into their beliefs, preventing them from discovering new content. Scientists have taken up this issue, trying to promote the  discovery of new content . But the facts are stubborn, and studies tend to prove that  filter bubbles do not exist . Nevertheless, they represent an interesting case of marketing nudge.

Algorithms can indeed be “manipulated,” i.e., rules can be programmed that guide the functioning of the algorithms. These “business rules” then lead the algorithms to favor specific contents over others and seek, thanks to machine learning, to maximize the desired result.

3) Odor diffusion (sensory marketing)

Who hasn’t been tempted by the smell of fresh croissants in a bakery?  Sensory marketing uses all techniques that aim to use our senses to provoke a purchase.  The olfactory sense is one of them. It is perhaps one of the easiest to implement. Synthetic fragrances are available for many contexts. Butter scents can be artificially created and diffused near the point of sale. The video below is an excellent example of what is done in supermarkets.

4) GDPR and consent

Data is the oil of the 21st century. So when in 2018, the  GDPR came into effect , site publishers and data resellers (the “brokers”) were afraid that their livelihoods would be taken away.  Nudging techniques were put in place to obtain consent quickly.

The example above comes from the magazine Bild in Germany. It is a perfect illustration of a  widespread technique that aims to guide the user’s choice . First, the button to accept all cookies is on the right, and then it is in red to attract attention. It is also worth noting that  the size of the popup is another typical marketing nudge used to force consent . The bigger the popup, the more annoying it is, and the faster the user will want to eliminate this annoyance. Combining these constraints constitutes a powerful nudge marketing technique to collect user data.

5) Choice of subscriptions

Nudges are frequently used to influence the choice of a subscription package. The example below comes from the famous Harvard Business Review. You will notice that there are only 3 subscription packages, which reduces the cognitive load and limits hesitation. Then it would help if you looked at the price differences and the calculation method (annual price per month). The middle option offers more for a minimal difference. This is the one that the publisher wants to “push” and towards which he wants to orient the choice of the visitors unconsciously.

The nudge is even more apparent in the example below. The price difference with the middle option has completely disappeared. The consumer has the impression that the paper magazine is offered to him.

6) Choice on a menu

The next time you go to a restaurant, be careful. If the menu is displayed at the entrance, it may be designed to promote the sale of the most profitable products. Eye-tracking studies show that a consumer quickly “scans” the menu and that their attention is mainly focused on the upper left and lower right corners. This is where you should place your most profitable products if you want to push them.

• Consumer behavior

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“Nudge Marketing”: Case Analysis Case Study

Nudge marketing: pros and cons, premises and conclusions concerning the advantages of nudge marketing, premises and conclusions concerning the disadvantages of nudge marketing, the rationale for choosing arguments.

The case under consideration is “Nudge Marketing,” and the text will be assessed from the point of view of this phenomenon’s pros and cons.

The notion of nudge marketing is tightly integrated into the practice of many trading corporations that use peculiar techniques to attract customers. The essence of this phenomenon is that using various schemes, for example, auxiliary visual prompts, advertisements, and other methods, sellers offer consumers to pay attention to a certain product or service. When evaluating this approach to sales from different points of view, it has some advantages and disadvantages concerning both sides. Therefore, as the analysis of this problem, the pros and cons of such nudge marketing will be considered, and appropriate conclusions will be made regarding the validity of its application. It is assumed that such an advertising technique has a significant benefit for sellers but does not always help buyers in the conditions of the variety of the commodity market.

When talking about the prerequisites for such a theory of sales, it should be noted that it has appeared relatively recently in the sphere of trade. According to Kahn et al. (2014), due to the constantly increasing competition in the market, it became necessary to look for new ways to attract customers, and one of them was the nudge theory. However, today, such an approach to the organization of advertising campaigns can be found in different places since both large corporations and small trading facilities are actively using this technique. From the point of view of merits, this method of sales has several premises that became the reason for the formation of this marketing approach.

Premise 1. High Competition

A high density of outlets, the constant appearance of new goods and services, the regular change of consumers’ interest – all these factors lead to a significant increase in competition among market enterprises. The development of the theory of attraction through nudging customers in the right direction has become for sellers one of the ways to increase demand for certain products and at the same time not to lose profits. Stocks for particular things that are sold today in stores of different profiles are one of the ways of nudging. As Soraghan, Thomson, and Ensor (2016) claim, the use of specific brands, for example, allows sellers to attract buyers because the level of popularity of a product directly depends on sales. If consumers see familiar goods that, moreover, are sold at a promotional price, it will certainly benefit the marketer and at the same time will help the customer to obtain the desired product at an affordable price.

Premise 2. Assistance in the Variety of Services

The application of this marketing technology in practice has become for sellers an additional tool for helping clients to orient in the variety of goods and services. According to Kahn et al. (2014), to enhance customers’ knowledge in the current assortment, marketers began to use an appropriate nudge technique with the help of various auxiliary tools – bright signs, clues, recognizable markers. Today, it looks quite natural when this or that producer places appropriate advertisement and uses different methods of attracting, for example, memorable slogans. As Guthrie, Mancino, and Lin (2015) note, in the food sector, consumers often prefer recognizable products, which is the result of effective advertising work. Therefore, such a premise is essential.

Premise 3. Stimulating the Economy

The emergence of nudge marketing was caused by the need to control the level of sales and thereby effectively spend available resources, organizing the level of supply and demand that would be positive for the economy. Tan, Lv, Liu, and Gursoy (2018) remark that in the sphere of tourism, the stimulation of consumer interest is largely possible due to successful advertising campaigns when buyers are offered interesting tours, favorable vouchers, and other ways of entertainment. This approach allows forming a stable system of commodity-money relations, which, in its turn, benefits both sellers and the state as a whole.

Considering the premises for the development of nudge marketing as a commercial phenomenon, it can be noted that various factors influenced its formation. Several merits that this type of sales organization has provides for active adherence to the provisions of this concept by different sellers. Not only the producers of goods but the state as a whole benefit from targeted nudging consumers to purchases.

The central issue that arises in describing the merits of nudge marketing is whether this principle of work is successful and correct from an ethical point of view. According to Tan et al. (2018), the targeted control of customers’ desires certainly benefits sellers but can be viewed as a tool of manipulation. Therefore, the problem should also be considered in terms of its shortcomings.

As arguments in favor of nudge marketing, the scientific articles of different authors are used as well as the data given in a statistical ratio. Thus, according to Guerassimoff and Thomas (2015), the increase in consumer motivation makes it possible to significantly reduce the risk of economic collapse. Also, the reasons for convenience for consumers themselves are the main ones.

When considering the concept of unobtrusive but stable manipulation of customer desires, this approach to sales has some drawbacks. To describe them, first, it is essential to pay attention to the prerequisites for the development of nudge marketing theory from the negative side. Moreover, minuses are certainly present, and some of them are significant.

Premise 1. Losses and the Absence of Competent Managerial Strategies

According to the case under analysis, many sellers use the nudge marketing model to attract as much customer attention as possible to their products. Nevertheless, sold goods do not always have a sufficiently high quality, which encourages manufacturers to take extreme measures and attract buyers in all possible ways. As Soraghan et al. (2014) claim, the formation of certain buying behaviors is one of the methods of market manipulation that is aimed at maintaining competitive positions. Insufficiently effective management strategies do not allow some companies to promote their goods in other ways, and the concept of nudge marketing is used.

Premise 2. Pursuit of Profit

Based on the principle of unconditional sales, some sellers ignore the generally accepted rules of fair competition and do their best to attract customers. In the case under consideration, missing dollar signs in menus, the display of user purchases in general, and other methods of unethical business are mentioned. Since these techniques are successful enough, marketers do not neglect to use them in the pursuit of profit.

Premise 3. The Recession of Customers’ Interest

The reasons for the loss of consumers’ interest can be different. Kahn et al. (2014) note that knowledge gaps regarding specific goods and their quality can lead to a decline in sales growth. This premise is significant, but in many respects, it overlaps with the previous ones. Sellers want to return the demand for their products and resort to the help of nudge marketing.

Negative aspects of nudge marketing are largely related to the manipulation of consumers’ desires and the intention to sell goods at any price. The interest of sellers is due to an attempt to receive as much profit as possible, thereby attracting the maximum number of clients. Some methods do not correspond to ethical standards and can be challenged by the public.

The issue is as follows: should the use of the concept of nudge marketing be replaced by modern sellers? If mass discontent arises, many companies will probably have to reconsider the policy of attracting customers. Otherwise, crises will be inevitable, and losses will be substantial.

As arguments, excerpts from the case under consideration and facts from scientific works are used. The reliability of the information is beyond doubt since the sources are peer-reviewed. The division into pros and cons involves the need to evaluate the arguments to identify the most rational and least valuable in terms of their validity.

From the list of reasons that have influenced the formation and development of the nudge marketing concept, it is possible to single out those that are of the greatest importance regarding their strength and the weakest, insignificant. For this purpose, specific terms will be used – deductive and inductive arguments. These definitions can help to assess the relevance of evidence in favor of or against the phenomenon under consideration.

Deductive Arguments

The most significant deductive argument implying analysis from the general to the particular is that sellers use nudge marketing conditions to confront competitors in the context of the struggle for consumers’ attention. This statement is valid since, by simple reasoning, it is possible to understand why some organizations begin to use non-standard approaches to increase customer demand. This truth-functional argument gives a chance to conclude in favor of the possibility of further using the model’s terms.

The least significant assumption is the judgment that nudge marketing helps to stimulate the economy. Despite confirmation in the scientific literature, this argument is unsound and can hardly be considered a basic one. The impact on the economy, in general, is not very significant and is unlikely to be regarded as a crucial factor.

Inductive Arguments

While considering inductive statements implying conclusions from the private to the general as arguments, it can be noted that the losses of companies directly lead to the introduction of nudge marketing. Such inductive generalization is based on the assumption that the loss of sellers is a cause, and the concept of trade is a consequence. Therefore, such an argument can be considered strong and cogent.

The weakest is the fact that nudge marketing is a modern trend and a popular movement in trade. It cannot be asserted that this or that concept is used solely as the imitation of the main direction of market development. This causal argument has no basis and, accordingly, can be considered uncogent.

Nudge marketing has a significant benefit for sellers; however, it does not always help buyers to choose high-quality goods in the market. The prerequisites for the development of this concept are different, and it has pros and cons. The central issues concerning this approach are whether it is necessary to ban nudge marketing and whether this trading technique can be regarded as successful from an ethical point of view. Deductive and inductive arguments allow identifying the most and least significant assumptions in terms of the application of this commercial theory.

Guerassimoff, G., & Thomas, J. (2015). Enhancing energy efficiency and technical and marketing tools to change people’s habits in the long-term. Energy and Buildings , 104 , 14-24.

Guthrie, J., Mancino, L., & Lin, C. T. J. (2015). Nudging consumers toward better food choices: Policy approaches to changing food consumption behaviors. Psychology & Marketing , 32 (5), 501-511.

Kahn, B. E., Chernev, A., Böckenholt, U., Bundorf, K., Draganska, M., Hamilton, R.,… Wertenbroch, K. (2014). Consumer and managerial goals in assortment choice and design. Marketing Letters , 25 (3), 293-303.

Soraghan, C., Thomson, E., & Ensor, J. (2016). Using food labels to evaluate the practice of nudging in a social marketing context. Social Business , 6 (3), 249-265.

Tan, H., Lv, X., Liu, X., & Gursoy, D. (2018). Evaluation nudge: Effect of evaluation mode of online customer reviews on consumers’ preferences. Tourism Management , 65 , 29-40.

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IvyPanda. (2024, February 21). “Nudge Marketing”: Case Analysis. https://ivypanda.com/essays/nudge-marketing-case-analysis/

"“Nudge Marketing”: Case Analysis." IvyPanda , 21 Feb. 2024, ivypanda.com/essays/nudge-marketing-case-analysis/.

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IvyPanda . 2024. "“Nudge Marketing”: Case Analysis." February 21, 2024. https://ivypanda.com/essays/nudge-marketing-case-analysis/.

1. IvyPanda . "“Nudge Marketing”: Case Analysis." February 21, 2024. https://ivypanda.com/essays/nudge-marketing-case-analysis/.

Bibliography

IvyPanda . "“Nudge Marketing”: Case Analysis." February 21, 2024. https://ivypanda.com/essays/nudge-marketing-case-analysis/.

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Nudge Marketing: How to influence decisions by changing the choice architecture

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Academic year: 2022

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KANDID A T UPPSA TS

Nudge marketing, how to influence decisions by changing the choice architecture, johan elmqvist, johan thorell, dissertation in marketing.

Halmstad 2015-06-05

Halmstad 2015-15-05

The following bachelor thesis in marketing was written in the spring semester of 2015 at halmstad university. we have during this process developed further ability in planning and prioritizing time between the internships and this thesis that both took place during the same time. our knowledge of nudge, both as marketing and a psychological term, has increased and we definitely feel its importance and possible impact in everyday life. our interest of this phenomenon has been at the same level during the whole process and we really feel that we could not have picked a more interesting area within our education to examine., we would like to take this opportunity to express our utter most gratitude to all the help and guidance that we have received during this process. we would very much like to thank all the participants of the survey and all our co-workers and acquaintances that took part in the two observations. without them, this thesis would not have been the same. we would also give a little extra credit to namely our co-workers who have been very supportive and helped out with input during office hours, where we mainly would not have time or space to write our thesis., of course, we would also like to thank our supervisor ulf aagerup, who has been a valuable asset with legitimate thoughts and ideas about the process and how to further develop the content of this thesis. he has done this with great productivity and constructive criticism that has helped us during the whole process., we would also like to give a special thank you to lars andersson, whose knowledge in statistics helped us when we were stuck at a vital point of this essay. without him, a statistical acknowledgement of our result would not have been possible., to whom this thesis may concern, we hope that it will interest you, give you pleasure, knowledge and help with the understanding of how the term nudge can be used in marketing., johan elmqvist johan thorell, title: nudge marketing - how we can make people make healthier food choices in their everyday life., date: 2015 - 05 - 15, level: bachelor thesis in marketing., authors: johan elmqvist and johan thorell., supervisor: ulf aagerup., purpose: the purpose of this thesis was to outline if it is possible to change consumer behaviour in order for the consumers’ to make healthier choices by using the nudge theory. the theory has previously been tested on a government to consumer basis and the objective has therefore been to apply the theory on a business to consumer basis to outline the possibilities of changes in consumer’s behaviour., theoretical framework: the theoretical framework starts with a review of the previous research within the field of the nudge theory, it continues with important paired theories such as libertarian paternalism, choice architecture and consumer behaviour., method:a method of triangulation have been used throughout this thesis since it brought a high degree of validity and reliability to the thesis. the methods have consisted of collecting primary and secondary data, conducting two various observation experiments as well as gathering information through a survey., empirical framework: the empirical studies consist of one survey and two observations. first, the survey is presented; where we wanted to get input of the theoretical situation that we later were to investigate in practice. this is followed by a presentation of the data from our observations where we tested the very same theoretical scenario from the survey in practice on two groups of people that were very much relatable to the people responding to the survey., conclusion: the conclusion of this thesis is that it is possible to change consumer behaviour by using nudge theory and how it is possible for a society such as sweden to make use of this tool to enhance life quality and prolong the life of its citizens., keywords: nudge, choice architecture, libertarian paternalism and consumer behaviour., table&of&contents&, 1.#introduction...5#, introduction... 5#, 1.1#background ... 5#, 1.2#problem#discussion ... 6#, 1.3#research#question ... 8#, 1.4#purpose... 8#, 1.5#delimitations ... 8#, 1.6#dispositions ... 9#, 1.7#key#terms...10#, 2#h#frame#of#reference... 10#, 2.1#h#the#nudge#theory ...10#, 2.2#libertarian#paternalism ...12#, 2.3#choice#architecture...13#, 2.4#consumer#behaviour ...14#, 3#h#method... 16#, 3.1#choice#of#method...16#, 3.2#the#quantitative#methodology...18#, 3.2.1#designing#the#survey#questionnaire ...19#, 3.3#the#qualitative#methodology...19#, 3.4#observation...20#, 3.4.1%observation%1%a%selection%of%situations ...22%, 3.4.2%selection%of%place ...22%, 3.4.3%selection%of%time...23%, 3.5#data#collection...23#, 3.5.1%primary%and%secondary%data...23%, 3.6#validity#and#reliability...24#, 4#h#empirical#framework ... 25#, 4.1 - survey to outline consumers’ perceived behaviour - adding nudge ...25#, 4.1.1-survey overview...25%, 4.1.2%1%respondent%overview ...25%, 4.1.3%1%respondent%habits...26%, 4.1.4%1%respondents%behaviour ...27%, 4.1.4%1%spreading%the%survey%across%channels ...29%, 4.2#h#observations ...29#, 4.2.1%observation%overview ...30%, 4.2.2%1%the%choice%between%two%goodies:%natural%open%selection...32%, 4.2.3%1%the%choice%between%two%goodies:%adding%nudge...34%, 5.#analysis ... 36#, 5.1#analyzing#the#observations ...37#, 5.2#the#nudge#theory...38#, 5.3#libertarian#paternalism ...39#, 5.4#choice#architecture...40#, 5.5#consumer#behaviour ...41#, 6.#conclusion ... 41#, 6.1#conclusion ...42#, 6.2#contribution...42#, 6.4#reflection...43#, 6.4.1#possible#other#nonhproven#explanations ...43#, 6.4.2#our#ethical#concerns...44#, 6.5#conceptualisation ...45#, 6.7#suggestion#of#further#research ...47#, references... 48#, 1. introduction, the chapter of introduction will describe why the specific area of research has been chosen, leading to the background of the problem. further more the problem is discussed and will lead to the research question followed by its purpose, the delimitations, the dispositions and the key terms in this paper., introduction, during the last decade, the fast food industry has grown every year with multinational companies increasing their revenue. this development makes it hard for companies that offer healthier alternatives to establish themselves. this thesis will outline the possibilities for health advocates to change customer’s behaviour, nudging them towards healthier choices that is better for them but also for the society in whole, by using one of the latest method in marketing, namely the nudge theory. recent reports and scientific research shows that the swedish population has unhealthy habits when it comes to food. a rise in obesity together with a negative pattern concerning the consumption of fruit, vegetables and fish are increasing the risk of different types of illnesses which can lead to bad well being and, in the worst case, premature death. to increase fruit and vegetable consumption to the minimum-level a decrease of fatal heart diseases could be as much as 31%., 1.1 background, it is no secret that managers during the last decades have spent a huge amount of time and money to come up with a strategy on how to position their products and services (dobni, dobni &, luffman, 2001) and when you considering the huge amount of effort and money that big companies spend on marketing and communication activities, every piece of knowledge that can contribute to the more effective use of resources should therefore be much welcomed and advertisers could benefit a lot from better knowledge about how consumers selectively direct their limited attention resources to avoid an even more cluttered advertising environment (nordfält, 2005)., the insight that “everything matters” can be both paralyzing and empowering. small and, apparently insignificant details can have major impact on people’s behaviour. a good rule of, thumb is to assume that “everything matters”. in many cases, power of these small details come, from focusing the attention of users in a particular direction (sunstein & thaler, 2008) and, according to nordfält (2005) retailers and advertisers can adapt their marketing and, communication to the needs of the consumers by understanding the importance of learning more about how consumers perceive external information and retrieve memorized information., causer, l., lock, k., mckee, m. & pomerlau, j. (2004) writes in their report that the lack of dietary fruit and vegetables contributes an important share of the worldwide disease burden., causer et al. (2004) estimates that increasing individual fruit and vegetable consumption up to the theoretical-minimum-risk distribution could reduce the worldwide burden of ischemic heart diseases by about 31% and ischemic stroke with 19% for example., according to livsmedelsverket (2015), obesity is increasing the risk of other diseases such as type 2 diabetes and both vascular and heart diseases. the mortality rate of vascular and heart diseases have actually decreased during the last decades but it is still the most superior reason for illness and disease in sweden by far. in practice, for people to be healthier than they are today, they would need to double the amount of fruit and vegetables. further, livsmedelsverket (2015) states that people would also need to eat much more fish, consume half as much candy, soda, bakery and ice cream and also exercise in some form at least 30 minutes a day. only two out of ten people are eating the recommended amount of 500 grams of fruit and vegetables a day and three out of ten are eating fish at least two days or more a week according to a vast report from livsmedelsverket (2012). this is an alarming development, since a low intake of fruit and vegetables is a risk factor of ischemic heart disease, stroke and many types of cancer (agardh, allebeck & moradi, 2011)., the amounts of people that are obese and overweight are increasing and the type of food, and volume of food intake are the foundation of this development. (skov, lourenco, hansen, mikkelsen & schofield, 2012). according to livsmedelsverket (2015), the most worrying development in sweden is the increased obesity. almost half of the adults and almost every fifth child in sweden are fat or obese today. public eating environments have therefore been identified as areas that are well suited for health promotion since there is an increase with the rate of people eating outside home. previously approaches that focus on changing the health behaviour have earlier focused mainly on the influence of individual factors rather than environmental factors., this makes it interesting and thus necessary to study the effect of changes in food environments out of home (skov, et al, 2012)., 1.2 problem discussion, while it is tempting to think that choices can be presented in a neutral way, the reality shows, something else, namely that there are no neutral architecture and that every way the choices are, presented, it will affect the decision-maker in his choice (johnson, shu, dellaert, fox, goldstein,, haubl, larrick, payne, peters, schkade, wansink & weber, 2012). retailers today are, challenged by the fact that consumers want more choices, such as more ethnic food products and a greater variety of flavours in products (nordfält, 2005)., studies show that the public doesn’t mind being marketed to, as long as the marketing strategies behind the message is respectful in the eyes of the public. this evolution has encouraged health advocacy groups who feel overrun by large food corporations that aggressively, and successfully, market junk food and sugary sweets to an already obese and unhealthy public (thompson, jf., 2013). consumers will also need marketing for information and to learn about product content and prices but maybe the most important, to be inspired, for example to try new dishes., therefore it is suggested that consumers, retailers and manufacturers could benefit from increased knowledge about non-conscious influences on decision-making (nordfält, 2005)., in a study done by the swedish public health agency, obesity increased from 11% to 14%, between 2004 and 2013. an increase was also noticed in every investigated group, with men and women at age 45-64, having the highest increase. further, the study shows that nearly 50% of the people in sweden are obese, or overweight. (folkhälsomyndigheten, 2014), according to sunstein & thaler (2008), there is overwhelming evidence that obesity increase risk of heart disease and diabetes, which can lead to premature death. with this in mind, it is difficult to state that everyone is choosing the right diet and making decisions that is optimal for their health., in 2008 the global fast food market grew by 6,6% and in 2013, the growth was forecast to increase by 29,3% since 2008, giving the corporations large resources to work with, and making it harder for health advocates to establish themselves (ming, tan teck;bin ismail, hishamuddin;rasiah, devinaga, 2010)., the addressed problem is that people sometimes make bad choices, and that they therefore should be helped to make better choices. because people are unable to make the best choices for themselves, they should get help by so-called “choice architects” who knows more about what will make people's lives better, easier and longer (vallgårda, 2012)., many of the policies and theories that have been tested previously is done on a governmental basis where governments use nudges to form people's behaviour. this can be done by introducing different regulations, laws and policies. there is a lack of previous studies that implement the nudge theory on private companies. private companies will of course want to make money and have a great opportunity to capitalize from the use of nudge (sunstein &, thaler, 2008). though it should be considered that there is something unpleasant about the idea that organizations use no conscious cognitive influences on decision processes (nordfält, 2005)., and according to solomon, m.r., bamossy, g., askegaard, s.,hogg, m.k., (2010), one of the, most common criticisms of marketing is that the marketing techniques are responsible for convincing consumers that they “need” items that they don’t. in other words, this means that marketing creates artificial needs., this thesis will try to outline the possibilities for the change in the choice architecture by applying the nudge theory in a way so that the consumers make healthier choices., 1.3 research question, is it possible to change consumer behaviour to healthier alternatives by using nudge theory, 1.4 purpose, the purpose of this thesis is to investigate and enlighten the subject of nudge and how it can and has been used in marketing purposes. it will treat psychological aspects, since its background is within psychology. nudge has so far been used as a tool to make people pay taxes and fees to the government both in time and in some cases as early as possible. the bills to these costs often have a late expiration date, meaning that people tend to basically pay these fees during the last day. this is something that many governments want to change, and has therefore used nudge., what we want to investigate is if it is possible to change consumer patterns in order for consumers to make healthier choices, by using the nudge theory. this will be made by conducting an observation to see and connect the theory of how you can alter decisions in a specific direction, in this case a healthier one. we will also conduct a survey with a nudge to be able to prove further the effect that the theory in fact has both in real life situations and in hypothetical ones., the purpose of this thesis it is to outline if it is possible to change consumer behaviour in order for them to make healthier choices, by using the nudge theory., 1.5 delimitations, the thesis will investigate the market of food consumption. we will focus on the general diet of, the swedes and examine how to turn certain people's minds to instead pick a healthier alternative, by slightly nudging them when conducting both the observation and the survey. nudge is, something that can be used effectively within many different areas of the society but the food, industry is something that is a real debate in the current climate around the world. what kind of, food a person is consuming, is it healthy or unhealthy, is people aware of the different risks of a, bad diet healthy, nutritious food combined with workout is a trend that currently is what one would call a hot topic today. that is why this thesis is limited to that industry and it will distance itself from other areas where nudge is used, areas such as politics or the pharmaceutical market., the focus will be the swedish market since this is where our studies of this field will take place., terms, examples and theory from abroad is used frequently because most of the theories of nudge is written by foreign authors abroad. we have applied these theories on the swedish market throughout the empirical studies of this thesis., 1.6 dispositions, figure 1.1: dispositions, 1.7 key terms, choice architect - this is a person who is responsible for organizing the context in which people make decisions. many individuals who are choice architects are unaware of being so. it is the art of indirectly influencing the decision-making. can be a salesman, doctor or an hr representative for example., libertarian paternalism - a behavioural term that means influencing people to make decisions best suited for the individual. however, if they do not choose that option but instead chose what they want, which can be an unhealthier choice, libertarian paternalists will not force them or make it harder for them to make it., nudge - a nudge is how you, as a choice architect, in any way alter someone’s behaviour without ruling out any of the options at hand or by substantially change economic incentives. this is how we will refer to a nudge in this paper., 2 - frame of reference, the chapter involves relevant theory, previous research and data collected to shed some light within the academically side of nudge and its theories. firstly, the nudge theory itself is explained. this is followed by other acknowledged theories that are directly related and are needed to explain the bigger overall picture., 2.1 - the nudge theory, “rare, difficult choices are good candidates for nudges” (sunstein & thaler, p.75, 2008)., when do we need a nudge the short answer is to offer nudges that are most likely to help and, least inflict harm. the slightly longer answer is that people will need nudges for decisions that, are difficult and rare, for which they do not get prompt feedback, and when they have trouble, translating aspects of the situation into terms that they can easily understand (sunstein & thaler,, many of life’s choices are like practicing putting without being able to see where the balls end up, and for one simple reason: the situation is not structured to provide good feedback. for example, we usually get feedback only on the options we select, not the ones we reject. unless people go out of their way to experiment, they may never learn about alternatives to the familiar ones. if you take the long route home every night, you may never learn there is a shorter one., long-term processes rarely provide good feedback. someone can eat a high-fat diet for years without having any warning signs until the heart attack. when feedback does not work, we may benefit from a nudge (sunstein & thaler, 2008)., the idea of nudges is really about framing choices. people today are exposed with an enormous amount of signals about what is the best thing to do. we live in a complex world and since people only have a limited amount of time to process all the signals, they use social cues that will help them make better decisions (john, p., smith, g., stoker, g., 2009). nudging may be through changing the decision structures that individuals face so that their individual or collective welfare will increase (wells, 2010) and according to john, p. et al. (2009) individuals in the society today seek to economize on the use of information, whether it is about seeking to reflect on big issues or when deciding to carry about a routine civic action. the original definition of the term nudge excludes the change in people’s behaviour by implementing legislation, regulation and intervention (marteau, ogilvie, roland & suhrcke, 2011)., the nudge theory offers a valuable framework for the choice architecture, and the change of it. it seeks to achieve alterations in the behaviour and attitudes, which would contribute with improvements, not only for the individual, but also for the society (john, p. et al., 2009). aside from this, nudging can also include a wide range of approaches to alter social or physical environments to make certain behaviours more likely according to marteau et al. (2011)., researchers that are using this approach argue that individuals can be offered a choice architecture that encourages, not only themselves but also the people around them in the society., to do so, information has to be provided and be structured or framed in a way that will affect the individual behaviour (john, p. et al., 2009)., humans are goal directed, and they understand the world in a realistic way. they are used to, adjust to the changes facing them. although, they are not always successful doing so, which, mostly depend on inner limitations (john, p et al. 2009). more broadly, humans are social, animals who often look to the rules and underlying habits of how to act in different situations - in, other words - how people behave in general. individuals have a tendency to strive after the rules, of appropriate behaviour rather than just to maximize their utility (march & olsen, 1989). these, cognitive limitations make a major impact on the individuals, since the decision-making is, conditioned by the cognitive limitations. individuals can reason, but when they are faced with a, decision they do not think about every option and they do not always make a choice that are, optimal to their utility, as many economists assume. the cognitive limitations help them to focus on some things, which are based upon rules, habits and emotions, and ignore others (john, p. et al., 2009)., furthermore, humans cognitive abilities are not infinite, thus they have limited computational skills and extensive flawed memories. to deal with these limited memories, humans make lists and use mental shortcuts and rule of thumb. this is not however, a guarantee for succeeding and even when humans use mental shortcuts, it can produce predictable mistakes (jolls, c. sunstein, c.r., thaler, r., 1998)., there is a theory called psychological discounting which suggest that immediacy is a major factor when we respond to offers. the short-term effect of our decision is more important than the long-term. if a person is to receive something, he or she would rather have it now then later., behavioural economists use this kind of theory to explain why people often make unclear and imperfect decisions (frederick, loewenstein & o’donoghue 2002)., with this said, the nudge theory will try to go with the grain of human behaviour and understand the shortcuts that people use to make decisions and then seek to bend or influence their environment (the choice architecture) in order to get a behaviour that is more beneficial for the society in whole, as well as for the individual. the nudge strategies are about creating the conditions to make better choices in the moment, and by nudging individuals in the right direction (john, p. et al. 2009). with this in mind, people overweight consume short-term and tend to forget and ignore the long-term gains. this enable outcomes that are weak and suboptimal for both the society and the individual. this will make people ignore the long-term effects of a poor diet and an inefficient lifestyle. (o’donoghue & rabin 1999.), a nudge is basically any aspect of the choice architecture that will alter people's behaviour in a predictable way. it will not forbid any options for people or in significantly change their economic incentives. a nudge must, in order for it to be a nudge, be easy and cheap to avoid., nudges are not mandates. a nudge can for example be to put fruit at eye level. to ban junk food and force people to eat healthy is not a nudge. (sunstein & thaler, 2008), 2.2 libertarian paternalism, economists richard h. thaler and cass r. sunstein first introduced the term libertarian, paternalism in an article in 2003. it suggest that people in some cases have a tendency to make, inferior choices, which they would not have done if they had the complete information, unlimited, cognitive abilities and no lack of willpower. libertarian paternalism is an approach that, encourages people to make free choices, but authorize both private and public organizations who will seek to steer people in directions that is good for them (thaler & sunstein, 2003)., in their book “nudge: improving decisions about health, wealth and happiness”, sunstein &, thaler (2008) explain the phenomenon further and admit that it is a concept that is difficult to interpret for unfamiliar people. both words are weighed down by stereotypes from popular culture and politics that makes them unappealing, not to mention that they seem to be contradictory. but however, sunstein & thaler (2003) argue that the words are far more attractive together than separate, since they both reflect common sense if understood properly., the libertarian aspect mean that in general, people should be free to take whatever decision they want and libertarian paternalists will want to make it easy for people to make their own decision without jeopardizing the personal freedom. the paternalistic aspect means that it is legitimate for choice architects to try to influence people’s behaviour in order to make their lives longer, healthier and better (sunstein & thaler, 2008). nudging is described as libertarian paternalism because although the choice architects or “nudgers” are trying to encourage different individuals to enact beneficial behaviours for themselves but also for the society in whole, with no compulsion involved (bonell, mckee, fletcher, haines & wilkinson, 2011)., philosophers have approached the libertarian concept of free will. they argue that in order to claim that consumers are acting autonomously in response to ads, the capacity for free will and free action must be present. that is, the consumer must be capable of deciding independently what to do, and not be prevented from carrying out that decision (solomon et al., 2010)., furthermore sunstein & thaler suggest that the term libertarian paternalism is a weak, soft type of paternalism because choices are not fenced off, burdened or blocked. they suggest only that choice architects are self-consciously attempting to move people in directions that will make their lives better, they nudge (sunstein & thaler, 2008)., 2.3 choice architecture, different heuristics of consumer choice have been the object of a great deal of study which tend, to have a narrow focus on the particular ways in which data is combined in comparing, alternatives (bettman & zins, 1986). the term choice architecture is used to describe the, different ways that choices can be presented for a customer and the impact it can have on, consumer’s behaviour according to sunstein & thaler (2008). there are of course a lot of ways, to present different choices for consumers or decision-makers and the choices are often, dependant upon how they are presented (johnson et al., 2012). choice architecture can also make, major improvements to the lives of others by designing user-friendly environments, a reason of, major positive impact for some of the most successful companies on the marketplace. sometimes, it is highly visible, making it clear for consumers and employees, which makes them very, pleased with it. the best example of this is probably the ipod or iphone that is not only easy to, manage for consumers, but it is also elegantly styled (sunstein & thaler, 2008). with this in mind, choice architects have significant, and in many cases, underappreciated influence. choice architecture can influence choices in multiple ways: by varying the presentation order of different alternatives, the order attributes, ease of use or the selection of defaults (johnson et al, 2012)., 2.4 consumer behaviour, the theory of consumer behaviour covers a wide range: it is the study of the processes involved when groups or individuals select, use, dispose, and purchase products, ideas, services and experiences to satisfy their needs and desires. there is also a growing interest in the field of consumer behaviour not only from a marketing perspective but also from the social sciences in general. this is due to the growing interest and awareness of the increasing importance of consumption in our daily lives (solomon et al., 2010). the field of consumer behaviour have been widely discussed during the past years and bargh (2002) states that there has been an increasing attention to the possibility that there might be automatic or no conscious influences on choices and behaviour. the field still appears dominated by purely cognitive approaches, in which decisions and actions are made deliberately., solomon et al. (2010) writes that one of the main reasons that people study consumer behaviour is simply that the deeper knowledge and understanding you have of how consumers work, it is easier to make more money off them. this may sound harsh, but the reality is cruel. of course it is much more to it. furthermore the authors emphasise how vital it is for companies to understand its customers. you can then offer even better and more tailored service in combination of it being an important part of the marketing strategy and also give the company competitive edge., solomon et al. (2010) describes the self-image as the qualities that an individual possess and what the person thinks of these qualities. there are also two parameters of the self, the ideal self and the actual self. the actual self is a more realistic view on one’s possessed or missing qualities while the ideal self is one's idea of how it wants to be (solomon et al., 2010)., purchasing and using products allow the consumers to define, maintain and further enhance their own self-concept (hosany, s., & martin, d., 2012)., product consumption symbolizes personal attributes, motivations and social patterns. symbolic, consumption reflects the personality and lifestyle of consumers, expressing social distinctions, (sirgy, m.j., 1982). consumption serves as a vehicle of self-expression (aaker, d.a., 1996) and, the consumers choose different products and brands perceptually consistent with their own self, concept (grubb, e.l. & grathwohl, h.l., 1962 and sirgy, 1982). this can also create a conflict, for the individual. if the individual wants’ a product but wishes to avoid it at the same time, a state of approach - avoidance conflict occurs (salomon et al., 2010)., figure 1.2: the approach - avoidance conflict (solomon et al., 2010), according to frederick et al. (2002), individuals have a tendency to make unclear and poor decisions. this can force a shift in the approach-avoidance conflict model to the left., the self-image congruence is another factor that has a big impact on human lives. it is the concept of a choice where you decide to purchase and/or consume products that match attributes one is thought of inhabiting (solomon et al., 2010). there are strong supporting evidence that self-image congruence explain and predict different aspects of consumer behaviour (he, h. &, mukherjee, a. 2007). consumers’ buy products and brands they believe possess symbolic, images similar and/or complementary to their self-image, that is, to achieve image congruence, (heath, a.p., & scott, d. 1998)., this chapter will outline the scientific approach for collecting data and implementation of the study. it will also present a discussion about the choice of scientific approach where the, relevance and reason behind the choices that has been made are presented. finally, the validity and reliability of the sources are looked upon and criticised which concludes this chapter., 3.1 choice of method, triangulation has been used as a method throughout this thesis. a combination of observed experiments, a survey and previous research provide different types of answers as well as a wide range of results. these combined enable investigation both in depth and of broader perspective., according to denscombe, m. (2009), the primary reason for combining different methods is to, gain a broader opportunity to investigate a phenomenon. since every different method contribute, with its own angle of the research in question, method triangulation will increase the quality of, the research. the method provides the opportunity to compare, question or verify the different, types of results of data from each method. to have the option to see facts from different, perspectives combined with the opportunity of possible confirmation will increase validity of the, research and according to todd (1979), triangulation can provide the researchers with several, important opportunities and it allow the researchers to be more confident in their results and, provide the them with various viewpoints..

Figure 1.3: Model of triangulation, a combination of methods.

The choice of method is based on the problem being investigated. What kind of method will

Provide the most helpful to enlighten the chosen problem there are different circumstances that, can exclude certain methods (harboe, 2013). one of those circumstances is time, something that, we would like to have had some more of, mainly to be able to conduct the qualitative interview, that was planned initially, but could not be conducted. another circumstance is resource, since a, project takes a lot of time and can cost a lot of money - an element that is really crucial when, deciding the extent of the research. this is mainly adapted to students who are to deliver a, project at a certain date and very seldom have a large budget to the project in question (harboe,, 2013). presented below is harboes (2013) model of resource consumption of different methods., figure 1.4: harboe (2013) “the resource consumption of different methods”, 3.2 the quantitative methodology, according to jacobsen (2002), the quantitative methodology has its benefits since it provide standardized information which make it easy to work with, and enable the gathering of information from many respondents which have been essential for us throughout the thesis in order to outline customer’s perceived behaviour with the help of our survey. a quantitative methodology can be hypothesis testing, which is to formulate a reality-based statement and then empirically test if it is correct (harboe, t. 2013). the strength of quantitative methodology is the generalizability and the testability. the testability is great since quantitative methodology is based on standardised measurements. in principle, others can use the very same questionnaire and get the same result. in the same way, the generalizability is great when quantitative research is built upon a representative selection of the population (harboe, 2013). further jacobsen (2002), state that the quantitative methodology enable the investigator to get a clear view about variation and correlation between different conditions at the same time., this thesis tries to outline the consumer patterns to see if it is possible to change it by applying, the nudge theory. therefore, a quantitative research had to be made to get a clear view about, consumers perceived behaviour and preferences., 3.2.1 designing the survey questionnaire, since the purpose of this thesis was to outline if it is possible to change consumer’s behaviour to make healthier choices by using the nudge theory, we had to use a quantitative approach in the form of a survey - to outline consumer behaviour and perception. it is important to get information from many respondents of how they think they act and behave, which will enable a comparison on how they actually act and behave in real life situations later on., czinkota & ronkainen (2006) write about different factors to consider when designing a survey questionnaire. these factors have been looked upon when designing our survey. one is question format, which has three sub-categories. the first is about design, where we chose a structured one. this means that only a limited choice of options is available to the respondent (czinkota &, ronkainen, 2006). we also chose to have direct questions. different societies have different levels of sensitivity towards direct or indirect questions (czinkota & ronkainen, 2006) and we consider sweden as a society that does not have a problem with direct questions, and therefore we chose this option. czinkota & ronkainen (2006) also mention that answers may vary since the social desirability can have an impact to the respondents. the third sub-category within question format is data equivalence. this is mainly when designing a questionnaire for different countries where the standard is different and by that, one category of respondents in one country, will belong to a different category in another. for example, middle class respondents in the uae would be considered upper class in brazil (czinkota & ronkainen, 2006)., another considered factor was question wording, which emphasise the importance of the language used in the survey. it states that language and culture is important to minimize the risk of misinterpretations and misunderstandings of written words and lastly, translate correctly when switching language since different words have different meaning across cultures (czinkota &, ronkainen, 2006)., 3.3 the qualitative methodology, the purpose of this thesis is to outline if it is possible to change the consumer behaviour in order, for them to make healthier choices by using the nudge theory. in that perspective, a qualitative, method was preferred in this research. qualitative methods are best utilized when it comes to, access context that demands understanding but this is something that becomes clear gradually, (eliasson, a., 2013). the purpose of the thesis demands an approach with openness, few, limitations and a great emphasis on details and different shades amongst the investigated, selection. therefore it is essential to use a qualitative method, in this case an observation so that, the consumers’ actual behaviour can be outlined and compared to their perceived behaviour. it is, important to understand that it is the investigated situations and people that decide what kind of, information that will be collected (jacobsen, 2002). qualitative studies go in depth within a certain delimited empirical field and usually consist of fewer respondents. the main goal is not to collect results that are possible to generally adapt to the greater population. it is to collect close and nuanced information and interpret it to its relationship and context (harboe, 2013)., eliasson (2013) emphasise that a qualitative method work well when it is in combination with other forms of method. a qualitative approach is a good choice when investigating a phenomenon that the quantitative method is not sufficient enough to reach, or if it is difficult or even impossible to quantify. as mentioned earlier, we chose a triangulation of methods, since the purpose of the thesis was to outline if it is possible to change consumer’s behaviour to make healthier choices by using the nudge theory. the theory has its heritage from social behaviour theory and people might not always do what they think they do. therefore we wanted to outline their perceived behaviour, what they think they do, and then compare what they actually do in real life situations, and if this behaviour is changed when they are exposed to a nudge., we could not enforce different given questions and answers, since it is necessary to outline, “the real understanding” of how consumers act and behave, and not how they think they act themselves. with this in mind, the best choice to use is a qualitative methodology in our case, when it is necessary to bring clarity and a nuanced description to a specific subject (jacobsen, 2002)., in this paper, two observations have been used to collect data. this is one of the two types that, according to eliasson (2013), are the most common methods of collecting data when using a qualitative method. the other one is interview, but we could not find a preferable source for this method., 3.4 observation, as previously mentioned, we wanted to investigate consumer behaviour which might not always, match how consumers think they behave and therefore we first wanted to outline how people, think they act - their perceived behaviour. after that we wanted to observe how people actually, act and behave in a real life situation. however, since the purpose of this thesis is to outline if it, is possible to change consumer behaviour so to make healthier choices by using the nudge, theory, we had to expose consumers for a nudge and compare that behaviour with their, behaviour when not being exposed to a nudge. therefore we used two observations to take a, look at how people behave in a situation where fruit and candy is presented in front of them and, they are able to choose what they want. since the resources of the observations are not so grand, as we would like, a perfect situation at a perfect place at the perfect time is crucial to gain the, maximum amount of data and useful information. observation is considered a great tool to, register how people actually behave, and not how they say they behave, and also to register people's behaviour in a specific context according to jacobsen (2002)., even though the choice of observations may seem clear, it is important to understand that observations can take many different forms such as opened or closed, participant or non- participant observations, where, when and how long the observation is, will take place and who to observe (jacobsen, 2002). observations often give valuable and immediate information and can look very different when looking at the activity level of the observer in the observation. at passive observation, the observer tries to avoid any type of physical or psychological impact in the observed environment. this can be done by observing at a distance or keeping the project of the observation secret to the parties involved. at active observation, the observer tries to influence the environment in a certain direction to later analyze eventual effects (harboe, t., figure 1.5: activity level of the observer, in order to be able to answer our research question we had to create a three-part observation in which we first had to observe people's basic behaviour when they were faced with multiple choices. second we added the nudge, a change in the choice architecture so that the choices were presented in a different way than before, and observed the behaviour after the change. finally we compared the different behaviours and choices that the consumers had made, to outline the differences., since we wanted to provide a descriptive image as possible of the reality in consumer’s behaviour, the choice was to do a closed, non-participant observation. according to jacobsen (2002) we could risk a change in people's behaviour if they are aware of the fact that they are being observed. jacobsen (2002) also writes that a participant observation may affect the result in a preferable way to the investigator, which would not give a fair picture of the situation., taking the theory and the data we gathered so far in consideration, we created the following null hypothesis and an alternative one:, h0: β = 0 - there is no difference between the two groups., h1: β ≠ 0 - there is significant difference between the two groups., 3.4.1 observation - a selection of situations, before making an observation, different elements must be thought through. when normally thinking of selection in studies, you think of people, but when you think of selection in observation a different element becomes important, namely the context and situation in which people act and behave. therefore it is crucial to be very critical when deciding on the situation and context. in order to perform an observation one must choose the place and time (jacobsen, 2002)., when we decided that an observation was an approach we wanted to pursue, the discussion of situation emerged. as our objective in this thesis is to examine the possibility of influencing decisions (having only the resources and time to investigate on a small scale), the situation of an observed experiment is crucial. we needed it to be a situation of a social nature where there also was a need for some sort of nutrition for the people being observed. the situation also needed to be a relaxed one with people of similar type, taste and mutual interests to make the situation itself a comfort zone for everyone in that context. the more relaxed people are, the more likely we think it is for them to make a choice as honest as possible., 3.4.2 selection of place, the purpose of the study is, as previously mentioned, to outline if it is possible to change, consumer pattern and behaviour to healthier options by using the nudge theory. in order to, examine this, the consumer has to be exposed to a wide range of options including both healthy,, and unhealthy ones; otherwise the nudge will not have any effect. the most important thing, according to jacobsen (2002) is that the selection of place is closely connected to the problem, being examined. further according to jacobsen (2002), the investigator can choose between, examine one or more places randomly, one place he thinks will give maximal variation, one, place he thinks will be representative for a large population or a place with a specific clientele or, distribution. we believe, that in order to get a clear image of the reality, it’s not enough to, examine just one place. we need to make several observations in several different places to get a, clear view of consumer’s behaviour. the selection of place landed in two different common, rooms of two offices, one in gothenburg and one in stockholm. the people that were observed, in these two places had great similarities on personal level and all of them are working in, businesses close related to one another. they are acquaintances from the workplace since, everyone at the gathering work in the same office complex but in different companies., 3.4.3 selection of time, it is just as important as the selection of place, to have the problem discussion in mind when deciding on the selection of time when doing an observation. since this thesis will try to outline if it’s possible to change consumers behaviour to make healthier decisions by using the nudge theory, it must be considered if the observation should be done during a typical period when there is an average influx of customers, if it is a period when there is a special type of customers (jacobsen, 2002). since the area of research centres around consumption, it is of great importance to catch a time of hunger and/or low blood sugar of respondents in this observation., it is also important to have a span in which some participants are more and some are less hungry., both because we want to see what is being chosen in different stages of hunger, and at the same time we must be able to offer anyone something that will satisfy their need. in that way, all the available options of fruit and candy of different sizes can then theoretically are consumed and not go to waste., 3.5 data collection, when gathering information, researchers have two different sources of information to choose from, which is primary and secondary data. the most preferable way is to use both primary and secondary data since these can control each other. different data can give support and thereby strengthen the results, but it can also be used in order to challenge different information against each other (jacobsen, 2002). a good research is a change between empirical data and subjective interpretations in a nuanced and systematic way (gustavsson, b. 1998)., 3.5.1 primary and secondary data, during the thesis process, primary data is gathered in form of an observation. by doing this, it is possible to gather tailored information from primary sources, for the specific research question (jacobsen, 2002). the primary data are the observations and interviews that contribute with a rich and vivid purpose to the scientist. this is the material that is later coded and processed in the conceptualisation process (gustavsson, b. 1998)., during the process, secondary data has also been collected. the data has not been collected for, the purpose of answering our specific research question, but for another purpose that makes it, very important to be more critical in the analysis of the sources (jacobsen, 2002). secondary data, is coded and conceptualised in the study, but it is dependant on previous processed data that is, out of one's control. although, the gathered material is not vivid in the same way. in this stage,, one is processing already theoretical processed data that is something that one has to be aware of (gustavsson, b. 1998)., sources used in collecting the secondary data are different databases such as summon, google scholar, diva-portal, emerald and proquest. more rarely, but still nevertheless, used are databases of universities from many different western societies., 3.6 validity and reliability, according to ejvegård, r. (2002) all measurements and techniques, including surveys, must be reliable and valid. the reliability shows the usefulness and how reliable a measurement is. it is of absolute necessity to have a certain standard and high requirements of the sources being used in the research. examples of requirements that have been taken into account when conducting this thesis is that the sources ought to be relatively fresh and independent of one another (ejvegård, 2002)., denscombe, m. (2009) emphasise that the researcher has to consider the reliability of the written sources. important topics to take into consideration are for example who the author of the literature is, when it was written and the level of knowledge possessed by the author or authors’., according to jacobsen (2002), triangulation gives a greater overall picture and increase validity., taking the qualitative study and the quantitative study in consideration, the research gives different input on the very same subject. a deeper and more niche knowledge from the qualitative method, and then a broader from the quantitative method., in order to increase validity and reliability we had to statistically measure the outcome of our, observations. this was done by performing a z-test, which would give us the answer if there are, any significant differences in consumed fruit between the two observed groups., 4 - empirical framework, in this chapter we will present the collected empirical data. the data have been collected through two different observations and one survey. the data collected from the survey will be presented first, followed by the data from the observed experiments, 4.1 - survey to outline consumers’ perceived behaviour - adding nudge, when presenting the data of the survey we have divided each section of data to make the experience of reviewing it a little easier. this data is also complemented with the graphic from the survey showing the exact percentage and outcome of each question., 4.1.1-survey overview, to add validity and theoretically test and compare the very same dilemma that the people in the observations were exposed to, we conducted a short survey. this was the first step to collect data that at a later point would be compared to the data from the observations that we were to conduct at a later stage. the survey contained questions about both the respondents perceived behaviour as well as their habits. the respondents of the survey were controlled so they and the participants of the both observations were as equal as possible. in this way, it is motivated to compare the respondents of the survey and the participants of the observations., 4.1.2 - respondent overview, we were interested in knowing the gender of the respondents and their age to see if any patterns would occur or if the different choices depended on different generations for example. the respondents were mainly in the span 18-25 and 36-45, which also was the majority of age categories of the ones participating in the two groups of the observations. this was of utter importance because in this way, the relevance of the bigger picture of this thesis becomes higher, and in our analysis and conclusion it is easier to motivate how all these elements and data can be compared and be measurable to one another. there were a majority of men, 58% compared to 42% women responding to the survey..

Figure 2.1: Gender of respondents.

Women 70 42%

Total: 166 100%

4.1.3 - Respondent habits

Next, we wanted to know if the respondents were consuming the type of sugar one find in candy, cookies or pastries more than once a week, and if the case was so, how often it occurs. this reason behind it was to establish if the respondents were major consumers of these type of sweets and if by that, they were more or less likely to pick candy over fruit both in theory (survey) and in real life (experiment). about 64% responded that they often, or, a lot consume these products more than once a week while 36% claimed that they did not. none claimed that they never eat sugar..

Figure 2.2: How often do you eat sugar more than once a week? (Added sackaros, in ex candy or cookies) Options:

Very often 30 18%

Often 76 46%

Rarely 48 29%

Very Rarely 12 7%

I Never eat sugar 0 0%

Total 166 100%

In order for us to get an understanding of people's view on various health risks, we asked them to rank five different risks, and which of them they thought was the most dangerous one. The study shows that smoking was the most dangerous one and as many as 45% of the respondents answered that followed by obesity, alcohol, work injuries and traffic noise. 22 % of the respondents thought that obesity was a larger health risk than smoking.

Figure 2.3: Rank the following health risks. 1 = Most dangerous and 5 = Less Dangerous

4.1.4 - Respondents behaviour

Furthermore, we asked people to rank five different health risks in the order in which each individual perceived it. it is interesting to see if people are aware of the five major health risks and which of them actually are the most threatening to the human life. this is interesting for us in general, but foremost to see if the respondents are aware and up-to-date with the flow of information that is available to enlighten and possibly work as an alarm clock to someone living an unhealthy life. the information is out there and easy to access, and we feel that it is pretty important for people to know what threatens their life in form of day-to-day activities and diet, that can make or break a foundation of a long and prosperous life. especially, since a high majority of the respondents living in the (relatively wealthy) swedish society with all the possibilities being available for everyone. it does not take a lot of time nor comes with a high economical cost. a vast majority, about 75%, claimed that they in that situation would choose fruit instead of candy. only 25% answered that they would prefer a piece of candy when having low blood sugar..

Figure 2.4. Imagine that you are hungry and your blood sugar is low. In front of you, you have two bowls, one with candy and one with fruit and you have to make one choice. What do you choose?

Candy 42 25%

Fruit 124 75%

We have previously mentioned recommendations that the Swedish organisation

Livsmedelsverket have for people's intake of fruit and vegetables. in order for us to outline, consumer behaviour and compare it to livsmedelsverkets recommendations we asked them how, often they eat the enough amount of fruit and vegetables. only 21 % said that they follow the, recommendations very often. surprisingly, as much as 43 % of the respondents said that it is rarely that they follow the recommendations..

Figure 2.5. How often do you eat at least 500 grams of fruit and vegetables?

Very Often 35 21%

Often 52 31%

Rarely 71 43%

Very Rarely 8 5%

Further, we also asked the respondents if they follow Livsmedelsverkets recommendations regarding daily physical work out. Not very surprisingly, a small majority of 39 % said that they follow the recommendations of a minimum 30 minutes workout per day. Only 3 % said that it is very rarely that they perform a 30-minute workout per day.

Figure 2.6. How often do you workout at least 30 minutes per day?

Very Often 65 39%

Rarely 44 27%

Very Rarely 5 3%

As we mentioned earlier, previous studies show that people sometimes have a tendency to forget

The long-term gain when they are facing a decision. it is more common that they make the choice, that is more beneficial for them in the short-term. with this in mind, we wanted to see how, common it is for people to plan their shopping of groceries. also, if they plan when it comes to, consuming items containing sugar. our reason for this is that people might be more effectible, and more likely to change their behaviour spontaneously when they are exposed to a nudge, if, they do not plan their shopping. of our respondents, 44 % said that they often shop other, groceries than the ones’ they have planned. accordingly, 32 % said that they rarely shop other, groceries than the ones’ they have planned..

Figure 2.7. How often do you shop for groceries that you hadn't plan to shop?

Often 73 44%

Rarely 53 32%

When asked how often the respondents plan when to eat items containing sugar, a majority of 47

% said that they rarely do so and 38 % actually claimed that they do..

Figure 2.8. How often is it planned when you eat sugar?

Very Often 15 9%

Often 63 38%

Rarely 78 47%

Very Rarely 10 6%

4.1.4 - Spreading the Survey across channels

The survey was in the first stage shared through social media, in the form of facebook. in the secondary stage, we sent it through a mailing list to all the members of the marketing society in gothenburg. this way we were able to collect data from a much bigger span of respondents of different ages. the survey was the first piece of data that was collected, since it was relevant and interesting to get a first result of how people were thinking and if the result would be as we predicted. also, it was necessary to collect this data through a survey to compare a theoretical choice and a real one, which was observed in an experiment conducted later on. we used the numbers of the collected data as a foundation to divide the two elements fruit and candy in the first experiment accordingly. in total, 166 people responded to the survey., 4.2 - observations, first of all, enabling the survey and the observed experiments to be as measurable as possible to, each other was really crucial in this scenario. we really wanted all the elements chosen to be as, reliable and valid as possible. we had a specific group of people responding to our survey;, similar age, men and women, level of education, currently working or studying, and also the respondents were from sweden. neither fitness extremes nor the opposite. when we crunched the data of the survey, we decided that the most optimized place where this very same group that responded to the survey would be represented was our two offices. we had basically the same demography overall (both in between us and the same as the respondents of the survey), and could create two environments during the same time and of similar nature - by our measurements and possibilities it was as ideal as it could. enabling the survey and the two observed experiments to have the same type of participants in between them as well as the same as the respondents of the survey motivates the result to be analyzed more properly. when considering the behaviour of swedish people in combination with the culture of doing what is considered politically correct in the current climate, we were very confident that people in the survey, and in the observation with the nudge, would do what is expected of them - choose the healthy option., but when actually being put to test, without a nudge and without any influence other than themselves (and in some form peer pressure) we expected them to do the exact the opposite., since the purpose of this thesis is to see if it is possible to change consumer’s behaviour in order for them to make healthier choices, by using the nudge theory, we first of all had to outline and identify consumers behaviour when they are facing two different options, fruit and candy. in order for us to do so we performed one observation with this particular scenario. at the same time, in order for us to see if it is possible to change consumer’s behaviour by using the nudge theory, we did a second observation with the same scenario, but we added a nudge that consisted of informative notes and leaflets that were put out on places where people would notice them., these notes, or the nudge, were put in place four days before the actual observation took place., they were placed very strategically so that the people at the office at some or many points were to see them and consume this little piece of information that when the observation were to take place, they would have been affected by it and act on it. in the paragraphs presented below, we will present the two observations more in detail., during the first observation, without the nudge, the group contained a total of 60 people, 42 of them were men and 18 of them were women. during the second observation, with the nudge, the group contained a total of 24 people, 9 of them were men, and 15 of them were women., 4.2.1 observation overview, the two observation groups are considered as equal since there are no clear differences between, the group variables except for the percentage of gender distribution, which are of no interest, since the purpose of this thesis is to outline if it is possible to change consumers behaviour in, order for them to make healthier choices by adding the nudge theory. it is not in our interest to, investigate through our observations why, or why it is not, possible. below we present an overview of the two groups that participated in the two observations. the characteristics of the two groups are also presented to make a clear overview on the two groups and why they are compatible to being compared towards each other..

Figure 2.9: Observation overview

Observation Overview

Group 1 no nudge group 2 nudge, age 25-35: 10 %, 36-45: 38 % 46-55: 52 %, 22-35: 46 % 36-45: 13 % 46-55: 41 %, gender women: 30, women: 63 % men: 37 %, education higher education:, 80 % others: 20, 75,8 % fruit left, 24,2 % eaten fruit., 0,01 % candy left 99,9 % eaten candy, 92 % of the people being observed had been eating from the candy bowl., higher education: 84 % others: 16 %, 10,7 % fruit left 89,3 % eaten fruit 72,9 % candy left 27,1 % eaten candy 54 % of the people being observed had been eating from the candy bowl, before the observations were performed, we conducted a null hypothesis, and an alternative one, which are presented below., having previously conducted the survey, and analyzed the data, we had a clear image of how the, majority of people would act in these actual scenarios, given that they actually answered, truthfully. it does not necessarily have to come down to one being truthful or not; one, consideration from our point of view is that people maybe do not know themselves and how they, instinctively act. we specifically performed these experiments to observe if the results from our, survey were true or false when being put to the very same scenario described in the survey. what, made this really interesting was our knowledge of the gigantic impact the right kind of nudge.

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'Nudging' consumers is a common marketing tactic, but study finds it carries risk

by Jared Lindzon, University of Toronto

Marketers have found so-called "nudging" to be an effective way to influence consumer behavior—but new research suggests those who are prompted, either subtly or directly, to select a particular product or service may be quicker to abandon it.

A recent study, published in the Journal of Consumer Research , is among the first to consider the long-term impact of the widely utilized marketing tactic, which capitalizes on psychology and carefully designed prompts to encourage people to make a particular purchase. Examples include limited time offers or presenting people with a "compromise" option between two extremes.

Study co-author Sam Maglio, a professor of marketing and psychology at the University of Toronto Scarborough and the Rotman School of Management, says the research findings make it clear that nudging can have negative consequences for brands.

In particular, he points to subscription offerings, which are becoming more prominent across a broad array of product and service categories.

"If you want someone to continue renewing or using whatever service you provide for a long period of time, it turns out that nudges backfire," he says.

Maglio conducted two experiments to test three of the most popular nudging strategies to see how they affected long-term utilization.

In the first experiment, he offered students and faculty a free air plant. Among the control group , participants were offered the choice between a plant that was said to be lower maintenance and lower quality, and another that was higher maintenance and higher quality. For the nudged group, he offered a third "middle" option that was average in both maintenance and quality.

In reality, all plants were identical.

"Research has shown that when people look at three options that include one extreme and another extreme, they gravitate towards the middle, compromise option," Maglio says. This form of nudging is referred to as the "compromise effect," and proved effective in this experiment.

In exchange for getting a free plant, participants received an email every two weeks asking whether they still had the plant. After the first 10 weeks, Maglio says there was little difference in the likelihood of caring for the plant between the nudged group, who were subtly persuaded with the "compromise" option, and the control group.

"[But] once you get to about three months in, then we start to see the rate of [retention] separate," he says. "People in the nudged condition who picked the middle option were more likely to start saying, 'Yep, I let it die,' or 'Yep, I threw it out.'

"It ended up being a total of nine months that we kept checking in, and the longer we waited, the bigger the gap between those two groups got."

At the end of the experiment, the researchers found that those who were nudged into a selection were 16% quicker to discard their plant than those in the control group.

In the second experiment, researchers offered participants a free membership to a website that provided a new "fun fact" each day. In the control group, members were offered the choice between a "Trivia Expert" subscription plan or a "Back to School" membership option.

Another group of participants were automatically opted-in to the "Trivia Expert" plan, but were provided the option to switch, utilizing a nudging strategy known as the "default effect." In the final group, a third "decoy" option was added, titled "Trivia Expert for Kids," which was designed to nudge the adult participants towards the "Trivia Expert" option.

As with the previous experiment, all of the options led to an identical product and both nudging strategies proved effective at influencing participants' behavior—and both had a negative impact on participant retention.

"In the control condition, where they just chose between 'Trivia Expert' and 'Back to School,' they [logged in consistently] about 14 days in a row, and then they stopped," Maglio says. "In both of the nudge conditions—default and decoy—they were only logged on for an average of eight days, so it's a hefty drop-off after getting nudged as far as losing interest in the subscription."

Yet, despite the findings, Maglio suggests that nudging shouldn't be abandoned as a marketing strategy , as its effectiveness in influencing buying decisions is well established. Instead, he suggests marketers think twice before leaning on such tactics "in situations where you care about longevity, or you want the customer to use your products for a long time."

Maglio adds that there is little data on the long-term consequences of nudging, which could have significant implications for brand loyalty and consumer trust.

"We need to get more specific about which kinds of nudges have a counterproductive effect, which kinds of nudges have no effect—and which tactics work as a win-win for customers and brands," he said. "We're coming in with two experiments after decades of nudging, so there's still a long way to go."

Journal information: Journal of Consumer Research

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Do you know about nudge marketing ? What is meant by persuasive marketing ? Let me give you a preview.

By applying nudging techniques to online marketing , you can create suggestions for your users that guide them to take specific actions you desire.

Do you already feel intrigued by this technique?

Wait until you get to know how it works better, thanks to the contributions of Luca Florentino , CEO of Ottosunove, and Giuliano Trenti , CEO of Neurexplore.

We will delve into how nudging works, what it is based on, and how to apply it to digital marketing to discuss nudge marketing .

What is nudging?

Nudging is the collection of strategies used to encourage a consumer to take specific actions or adopt certain behaviors. In simple terms, it involves influencing people’s choices using the concept of “ gentle nudges ” (derived from the verb “to nudge”).

These psychological nudges lead the user to make choices naturally  as if those choices originated in their mind independently. In reality, the consumer is guided towards a persuasive choice, even if they are unaware of it.

How does nudging work, and what is it based on?

This, of course, can expose us to evaluation errors. ” But how can you influence an individual’s behavior? Well, it’s simple. By leveraging these errors, known as cognitive biases .

To put it succinctly, we could say that they are all those systematic errors our minds continually make. These errors occur because our brains tend to use mental shortcuts and simplifications to conserve energy.

We are physiologically drawn to options that involve no risks, those that require the least amount of change, and essentially, the simplest options.

So, in summary, humans tend to make instinctive and emotional decisions , which leads them to make “systematic errors” that can be exploited to guide them toward making the best decisions for themselves or for the society they live in.

And there you have the basis of nudging . Fascinating, isn’t it?

What is libertarian paternalism? Thaler and the theory of nudges

Luca Florentino explains, “ To help people evaluate and make better decisions — for their own well-being first and also for the community/society in general — sometimes it’s necessary to provide a small assist , a nudge , as defined by behavioral sciences.”

Richard Thaler and Cass Sunstein , the “fathers” of the nudge theory , explain that a nudge is essentially an element capable of guiding toward certain choices and behaviors, without prohibiting others.

Nudges are not orders; they are simply “gentle pushes” toward what appears to be the best choices in a given situation, simply by changing the way this choice is presented .”

The consumer has the same alternatives available; there are no bans or restrictions imposed from above. However, these nudges stimulate making a more desirable decision , one that might be overlooked due to the natural limits of human rationality.

Now, let’s explain what nudge marketing is.

How is nudging applied to digital marketing?

First of all, you need to understand who you are communicating to and who is your target audience. What are they expecting when visiting your website?

How can I provide, in the best way, what they are looking for? What can I do to make the customer journey on my site smoother?

Discover proven strategies for FOMO Marketing. Download the eBook now!

After verifying this, it’s the presentation of the product itself – both visually and in language – that captures the interest of the digital consumer. Some behavioral and psychological principles can be applied to the copy or call to action to guide the choice of a product.

For example, by playing on scarcity, you can make an opportunity/offer more desirable when its availability is limited : it’s a technique (FOMO Marketing) successfully used by sites like Booking, which capitalized on the high demand for hotel and apartment bookings, motivating people to reserve a room as soon as possible to avoid missing out.”

Evolution of Online Communication

Comparing two product presentation layouts on an e-commerce site – one with specific product feature details and another more minimal containing only essential information.

It was demonstrated that the more appreciated layout that encouraged purchases was the one with less information , as highlighted by Web Psychologist Liraz Margalit during the 2017 Shopper Brain Conference in Amsterdam .

So, less information, presented clearly with a focus on functionality and actual benefits that people can gain by making a purchase decision are good starting points for building relevant and effective digital communication.

In this particular historical moment, emphasizing the values promoted by the company or brand allows the consumer to identify with shared ideals , engaging and motivating them to choose.”

Let’s dive even deeper into the details, to explain in particular how you can leverage cognitive biases to your advantage and how you can make your digital communication more effective through practical applications of nudge marketing .

Video Interview on Nudge Marketing with Giuliano Trenti from Neurexplore

What do you do in life? What is your occupation?

I work in the field of neuromarketing . I have a laboratory where we conduct research on buying behaviors and people’s choices.

Using electroencephalography, eye tracking, and various other technologies, we are able to objectively measure a range of parameters that enhance the effectiveness of communication and marketing activities. This is the core of our work.

Nudge Marketing: examples and real cases

Could you illustrate the fields of application of nudging within online marketing.

In my opinion, the most interesting aspects involve applying principles that encourage people to have more responsible behaviors that are beneficial to their health and well-being.

In many cases, the most relevant aspects concern the application of cognitive biases and everything related to emotions , in order to effectively convey messages and shift people’s attention to certain elements.

This also results in behavioral responses favoring certain choices over others, which can be more advantageous for the consumers.

For example, a rather curious case I recently followed involves the world of insurance , where the purchase of certain types of coverage can be increased by altering the way information is communicated to individuals.

This helps them realize the underestimation of risks that would otherwise not be properly assessed.

Persuasive Techniques

Are there advantageous techniques for modifying the architecture of choices online.

There are many techniques, at least a few dozen. The most commonly used techniques in this field typically involve utilizing the status quo bias , configuring a choice architecture with default settings that steer people towards choices that align with their interests by using this default mechanism.

Another type of technique is to use the decoy effect, also known as the decoy effect . If you have two options to choose from, introducing a third (clearly unfavorable) option can alter the comparisons made between the options, focusing attention on the similar options.

This example illustrates the concept:

For instance, in a famous experiment conducted on popcorn, it was demonstrated that if you have two packages of popcorn, one priced at $3 and another at $7, to shift focus to the $7 package, you can introduce a third option at a medium value, such as $6.50.

People will then tend to focus on the packages priced at $6.50 and $7, leading to a shift in choices toward the $7 package. In contrast, when people have only two options to choose from, they tend to select the cheaper one.

Another very interesting technique is that of the use of the bandwagon effect, also known as social proof , which materializes in the fact of saying that many people have made a certain choice, and therefore, we tend to go in the same direction.

Online usability

As for usability, how can the user’s online experience be optimized.

Regarding user experience , we conduct dozens of experiments every year, and after years of application, I would feel confident in giving at least a couple of suggestions. The first thing is not to immediately think about the interface.

Paradoxically, the first element to consider in building a good user experience is a person’s habits . Before building an interface, I must ask myself: What are the things a person wants to know while interacting with the tool?

What are the things a person uses most frequently? What are those used less frequently? The things a person uses most frequently should be highlighted , putting the rest in the background.

Enhance your skills in user experience. Enroll now!

However, in many cases, you realize what is what when you have already created the interface, and as a result, you face a usability problem related to the fact that you used your perspective and not the customer’s perspective in designing the interface.

Once these elements are understood, you can build and test the interface to see if people react as you expected to this type of interface.

Details make the difference , specific colors, the position of certain elements, or button shapes can greatly help guide the eye across the screen and significantly increase the pleasure of using the tool and consequently the user conversion rate.

Target Experiments

What are the tools/tests used to study responses to stimuli from a specific target.

We have essentially two laboratories. The physical laboratory where we have all the neuroscientific instruments, and then we have an online laboratory, a platform that allows us to administer stimuli to a large number of people and understand the reactions these stimuli evoke.

The most important difference between the two laboratories is in the methods used and the sample quality.

In the physical laboratory, there is maximum possible control, the highest sample quality, and the possibility to have physiological recordings second by second of the reactions people experience in response to any type of stimulus. In the laboratory, we have actual cabins where people are not influenced or distracted by anything other than the stimulus presented to them.

With the online approach, on the other hand, it’s not possible to have exact control over what people do and maintain strict experimental control over contextual aspects. However, we have found mechanisms to ensure that the online research we conduct is as similar as possible to those conducted in the laboratory to ensure good data quality.

This allows us to conduct research that has the ability to increase the effectiveness of communication and provide strategic support to business operations, suggesting specific actions based on how people have responded to the presented stimuli for a better chance of success.

This is a fundamental aspect because in many cases, people are convinced that success can be achieved through communication alone, but that’s not the case at all. Each context has its specificities; for example, B2B does not follow the same rules as B2C.

So, this is the type of work we do to increase marketing returns, not only at the communication tool level but also at the strategic level.

In conclusion, we can emphasize the significant importance of applying nudge marketing to your business activities for more effective communication and a higher user conversion rate.

Nudge marketing is indeed an excellent way to improve your marketing activities and achieve remarkable results.

Hello there! I’m passionate about a variety of interests, including playing badminton, diving into video games, indulging in movies and series, and exploring new destinations while listening to my favorite tunes. I thrive on learning, constantly seeking out new knowledge and experiences. My professional journey started in a call center, but I’ve transitioned into freelancing, dedicating myself to continuous improvement and striving to be the best at what I do.

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Nudge Marketing

Find out how nudge marketing works and see some examples

Nudge marketing is a selling technique that requires manipulating customer behavior to close more deals. Marketers use psychological insights to speed up clients’ decision-making process.

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In this article, we’ll explain how nudge marketing works, share some effective techniques, and provide inspiring examples. Stay tuned!

How does nudge marketing work?

Nudge marketing is about discovering psychological mechanisms that influence customers’ purchasing decisions. Nudge is a motivator that makes people buy. So, nudge marketing aims to transform this stressful decision-making process into a pleasant customer experience . Since leads often feel uncomfortable when making a decision, hesitate, and look for more reasons to buy, marketers use this approach to provide them with these reasons at the right time and in the  right  place.

To understand how nudge marketing works, remember the last time you bought fries or a cup of coffee at McDonald’s. In both situations, clients choose whether to buy a small, medium, or large portion. This is a win-win for both parties because customers have a choice and often prefer the large portion since the price difference between medium and large portions is not that tangible. As a result, they make seemingly independent decisions and spend more money, and both parties are satisfied.

Some people consider nudge marketing manipulative, which can be debated. Essentially, nudges are not clickbait or spam. They appeal to consumers’ psychology, interests, preferences, motivators, buying habits, and values. So, when implementing nudge marketing, brands consider previous customers’ experiences and needs, which allows us to call this approach personalized. Brands using nudges manage to make the buying process less stressful for clients, create personalized and targeted offers, and improve their sales funnel.

To make this strategy work for your business, we’ll share some practical ideas that will help you increase sales.

Nudge Marketing Techniques

Some of the ideas may be familiar to you since these are well-known tips that help convert more site visitors into customers. You can analyze your conversion rate, single out the strategies that helped you convert more leads, and implement them in your nudge marketing campaign.

Each of us has once missed some profitable opportunity — whether it was a missed 50% discount on a sweater or a lack of seats for an event, it sticks in our mind. Next time we see a time-limited offer, our subconscious reminds us of this painful experience. As a result, we are afraid of missing another valuable deal and make impulse purchases.

Marketers are familiar with this phenomenon and use it quite effectively to drive more sales. Take a look at an example of an email campaign promoting a hot deal with the help of FOMO.

Social Proof

This is another powerful marketing technique that encourages people to take action. Let’s say  that you are hesitating about which restaurant to visit, and you see that one of them has a long queue. You will probably consider it the best choice since people have already been there and trust it.

Social proof means that people look up to companies’ existing clients’ or thought leaders’ opinions and make decisions accordingly. They trust the choice of authoritative people. Marketers use this strategy to drive leads’  attention and convert them into clients. Below you can see how a company encourages users to leverage their services with the help of social proof.

Product Labels

Placing a functional product label is the new black today. Brands follow the most popular trends and use them in their selling techniques to increase revenue. They enhance product characteristics with unique features people can’t ignore. Eco-awareness and recycling are gaining momentum today, so brands don’t miss the opportunity to show that they care about our planet.

The North Face knows something about nudge marketing and uses this technique to promote the company’s clothes from recycled materials. This way, the brand positions itself as eco-aware and helps customers feel that they bring value by buying their goods.

Decoy Effect

This marketing technique is used by companies that provide multiple versions of the same product or several pricing plans. The goal is to persuade a customer to buy the most expensive product by presenting other items’  features as less valuable in comparison to it. This way, customers are sure that this most expensive item is the best choice. Examples of this phenomenon includes selling small, medium, and large portions of coffee or fries, where the difference between medium and large  portions is insignificant.

Spotify provides a comparison table for users to choose the best fit for them. The most expensive option immediately strikes the eye with its long list of features and little price difference.

Now that you know the most effective  nudge marketing techniques, we’ll share some inspiring examples that stand out from the crowd.

Examples of Nudge Marketing

We’ll provide online and offline examples of nudge marketing for you to see that this technique can be used in different industries and formats.

Misguided encourages users to buy a dress with a discount by informing them that several clients have already purchased it during the last 48 hours. This way, a brand creates scarcity  using customers ’  fear of missing out.

Volkswagen ran an experiment in 2009. The brand was looking for a way to make more people take the stairs instead of the elevator or escalator. They created a fun piano staircase, which made  66% of  people choose the stairs.

Hubbub, an environmental organization, used a nudge marketing approach to reduce cigarette litter. The company placed Ballot Bins to ask people about trendy events and encourage them to keep the streets clean. This marketing campaign offered people to choose the best football player in the world.

Congrats, now you know how nudge marketing works, have some effective techniques at hand, and can grab some inspiration from the examples above, so create your perfect campaign and blow up sales!

Last Updated: 06.12.2023

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Home > Robinson College of Business > Marketing > MARKETING_DISS > 59

Marketing Dissertations

Does a nudge a day keep the doctor away using a firm’s digital marketing communication to guide wellness.

Orhan Bahadir Dogan Follow

Author ORCID Identifier

https://orcid.org/0000-0002-2166-6368

Date of Award

Degree type.

Dissertation

Degree Name

Doctor of Philosophy (PhD)

First Advisor

Naveen Donthu

Second Advisor

Third advisor, fourth advisor.

Neil Anthony Morgan

Fifth Advisor

Koray Cosguner

Wearable fitness trackers (wearables) (e.g., Apple Watch, Fitbit) are taking the wellness industry into the age of big data that is accessible at a customer level. The devices are popular but evidence for their effectiveness in driving customer behavior is surprisingly limited. Wearables are shown to be facilitators, not drivers, of wellness. To achieve the intended goal of promoting wellness, firms often send motivational or informational digital marketing interventions (i.e., digital nudges) to encourage customers in achieving their health goals. Studies rooted in behavioral economics demonstrate overwhelming evidence for nudging to influence customer decision-making; however, research is yet to examine digital nudges' influence on wellness, which can be facilitated by wearables. Combining the technology of wearables with behavioral research could help firms design interfaces that will be more effective. Additionally, the existing studies orbit around the public health domain and cater to specific groups (e.g., individuals with obesity and diabetes). Wearable effectiveness in our everyday lives from a marketing perspective remains unearthed.

Through panel data obtained from multiple wearable brands, the study investigates the effectiveness of digital nudges on customer wellness using a mixed model specification. Data includes the timing and content of the digital nudges, along with customers’ subsequent physical activity behavior in the form of steps taken and exercise duration. These variables are observed daily over four months for 517 global customers. We find that type of nudge the firm sends matters in driving behavior; further, firms should be careful when sending too few or too many nudges. Recommendations on the interaction effects of focus area with nudges are also provided. We provide an alternative approach to measure habitual behavior in a sub-analysis using a recent modeling approach MBG/CNBD-k to measure and predict wearable usage behavior.

The use of rich archival data could not only shed light on how digital nudging can encourage healthy behavior but also offer solutions to sustain this outcome. The study provides insights for practitioners to improve their product’s features (e.g., mobile app notifications) and to identify churn based on wearable usage regularity. Academic research can also benefit from this study since it enriches the recent research priorities in customer wellness, identified by top marketing journals. Further implications can be indirectly derived through the preventative nature of wellness, including avoidance of depression and cancer as well as proactively lowering health expenses for customers.

https://doi.org/10.31922/mqt6-mq90

Recommended Citation

Dogan, Orhan Bahadir, "Does A Nudge A Day Keep the Doctor Away? Using A Firm’s Digital Marketing Communication to Guide Wellness." Dissertation, Georgia State University, 2022. doi: https://doi.org/10.31922/mqt6-mq90

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Dissertations / Theses on the topic 'Nudge'

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Vitek, Viktor, and Shah Taqui Syed. "Implementing a Nudge to Prevent Email Phishing." Thesis, KTH, Skolan för elektroteknik och datavetenskap (EECS), 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-259403.

Zarifnejad, Sirwan, and Petra Johansson. "Nudge Management; a way to Motivate Healthier Behavior." Thesis, Mälardalens högskola, Akademin för ekonomi, samhälle och teknik, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-38067.

Bernsgård, Johanna, and Sonia Lee. "Nudges design utifrån ett psykologiskt perspektiv : En studie som fokuserar på användares känslor och tankar i relation till beteendeförändringen vid exponering för nudges." Thesis, Södertörns högskola, Företagsekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-45833.

Jacobson, Martin. "Power, Paternalism and Libertarianism : Libertarian Paternalism – More than a Nudge." Thesis, Uppsala universitet, Filosofiska institutionen, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-377435.

Frongia, Stefano <1991&gt. "Teoria dei Nudge e settore artistico-culturale: un rapporto possibile?" Master's Degree Thesis, Università Ca' Foscari Venezia, 2021. http://hdl.handle.net/10579/20123.

Rogut, Nathan. "Can we make investors smarter using a nudge? Maybe, but we can’t prove it using the most common experimental disposition effect environment." Thesis, Department of Economics, 2023. https://hdl.handle.net/2123/29894.

Elmqvist, Johan, and Johan Thorell. "Nudge Marketing : How to influence decisions by changing the choice architecture." Thesis, Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-28418.

Guimarães, André Filipe Casqueira. "(Des)encorajar o (des)emprego: "Nudge" aplicado à procura de emprego." Master's thesis, Universidade de Aveiro, 2015. http://hdl.handle.net/10773/16560.

Bromander, Anton. "Using Privacy Indicators to Nudge Users into Selecting Privacy Friendly Applications." Thesis, Karlstads universitet, Institutionen för matematik och datavetenskap (from 2013), 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-73154.

Senninger, Julia Thérèse. "Nudge to budge - social marketing in restaurants : A pilot study in Sweden." Thesis, Uppsala universitet, Institutionen för geovetenskaper, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-260098.

Scott, Emelie. "Textdesign med nudge : Ett arbete om att medvetet använda nudging i informationsmaterial." Thesis, Mälardalens högskola, Akademin för innovation, design och teknik, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-32259.

Gordner, Eliza. "Nudge Theory's Perceived Influence on FMLA Among Midwestern Metropolitan Nonprofit Arts Organizations." ScholarWorks, 2019. https://scholarworks.waldenu.edu/dissertations/6208.

Iacuissi, Stefano <1989&gt. "Nudge strategy. Una proposta strategica per il marketing dell’arte e della cultura." Master's Degree Thesis, Università Ca' Foscari Venezia, 2016. http://hdl.handle.net/10579/8128.

Jansson, Kristin, and Agnes Dahlström. "Företags tillämpning av nudging inom detaljhandelsbranschen : En kvalitativ studie om hur företag inom detaljhandelsbranschen tillämpar nudging inom fysisk butik och e-handelsplattform." Thesis, Högskolan Dalarna, Företagsekonomi, 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:du-34396.

Hu, Qiming, and 胡啟明. "Application of nudge theory for changing diet and physical activity : a systematic review." Thesis, The University of Hong Kong (Pokfulam, Hong Kong), 2014. http://hdl.handle.net/10722/206943.

Rosenfield, Adam (Adam Isaac). "Driving change : how workplace benefits can nudge solo car commuters toward sustainable modes." Thesis, Massachusetts Institute of Technology, 2018. http://hdl.handle.net/1721.1/117826.

Driftmann, Friederike [Verfasser]. "Der ernährungspolitische Nudge : Eine unionsrechtliche Betrachtung staatlicher Konsumsteuerung durch gezielte Entscheidungsarchitekturen / Friederike Driftmann." Baden-Baden : Nomos Verlagsgesellschaft mbH & Co. KG, 2021. http://d-nb.info/1241400679/34.

Collander, Cristoffer, and Erika Johansson. "Nudging - ett nytt planeringsverktyg för hållbara resor?" Thesis, KTH, Urbana och regionala studier, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-230955.

Lahna, Leila. "Amélioration de l’expérience d’achat en ligne et de la satisfaction client par le recours au nudge." Thesis, université Paris-Saclay, 2021. http://www.theses.fr/2021UPASI003.

Ziaja, Sebastian. "A nudge too far? : the effects of democracy aid on democratization and political instability." Thesis, University of Essex, 2014. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.654954.

Ahlbäck, Malin. "Nedskräpning i tätort : En studie om nedskräpning i Tumba och inverkan av nudging." Thesis, Stockholms universitet, Institutionen för miljövetenskap, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:su:diva-194052.

Smyrnis, George. "Essays in Improving Retirement Engagement." Thesis, University of Sydney, 2020. https://hdl.handle.net/2123/23628.

Corrégé, Jean-Baptiste. "Application des normes sociales aux technologies persuasives : le cas de la rénovation énergétique." Thesis, Université Paris-Saclay (ComUE), 2018. http://www.theses.fr/2018SACLS530/document.

Wahlman, Henrik. "Nudging för ökat återbruk på en återvinningscentral." Thesis, Högskolan i Gävle, Miljövetenskap, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-36506.

Andrews, Carolyn Anne Bancroft. "Always Something There to Remind Me: The Role of Nudging in Assignment Submission." BYU ScholarsArchive, 2020. https://scholarsarchive.byu.edu/etd/8967.

Almuhimedi, Hazim. "Helping Smartphone Users Manage their Privacy through Nudges." Research Showcase @ CMU, 2017. http://repository.cmu.edu/dissertations/1103.

Fragoso, Izadora Lincoln de Assis. "O papel do Nudge de priming como medida de política pública na igualdade de gênero ao nível da participação política dos agentes políticos brasileiros." Master's thesis, Instituto Superior de Ciências Sociais e Políticas, 2021. http://hdl.handle.net/10400.5/21432.

Andersson, Hanna. "Designing Digital Nudges for Sustainable Travel Decisions." Thesis, Umeå universitet, Institutionen för tillämpad fysik och elektronik, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-161076.

Koepke, Cami. "Libertarian Paternalism and the Authority Of The Autonomous Person." Digital Archive @ GSU, 2013. http://digitalarchive.gsu.edu/philosophy_theses/134.

Freberg, Isadora, and Albin Gustavsson. "Nudge, sludge, budge eller shove? : En fallstudie av ett beteendeprojekt i Lambohov med syfte att påverka människor till mer hållbara val." Thesis, Linköpings universitet, Nationalekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-177964.

Bertheim, Jane. "Designing Digital Nudges to Encourage Sustainable Decisions : Developing and Testing a Framework." Thesis, Umeå universitet, Institutionen för tillämpad fysik och elektronik, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-149603.

Pena, Madeira Gouveia DeCampos Maria Carolina <1991&gt. "At the intersection of Behavioural Economics, Nudging and Regulation: Rethinking the process of nudge design for regulation." Doctoral thesis, Alma Mater Studiorum - Università di Bologna, 2021. http://amsdottorato.unibo.it/9623/1/PhD%20thesis_EDLE_MariaCampos.pdf.

Plonquet, Matthieu. "Three essays on using Nudges in business firms." Thesis, Paris 1, 2019. http://www.theses.fr/2019PA01E062.

Nelander, Lif. "Nudge the lunch : a field experiment testing primacy effects using a menu intervention approach in a university cafeteria." Thesis, Uppsala universitet, Nationalekonomiska institutionen, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-392280.

Haapaniemi, Elin. "Att uppmuntra till hållbart beteende : En undersökning om nudgings effekt på pappershandduksanvändning." Thesis, Uppsala universitet, Statsvetenskapliga institutionen, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-353797.

Brännström, Alida, and Rebecka Krantz. "En nudge på vägen : En kvalitativ studie kring e-handelsföretags möjlighet att implementera och öka andelen miljöfrakt genom nudging." Thesis, Umeå universitet, Företagsekonomi, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-161151.

Ouvrard, Benjamin. "Les nudges dans la régulation environnementale : alternative ou complément aux instruments monétaires ?" Thesis, Strasbourg, 2016. http://www.theses.fr/2016STRAB011/document.

Iranyongeye, Augustine, and Laura-Maria Toivanen. "Consumers’ choice of grocery store in Umeå : A quantitative study on how healthy food and nudging can affect consumers’ choice of grocery store." Thesis, Umeå universitet, Företagsekonomi, 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-172794.

Villela, Berenice. ""Nudge a Mexican and She or He Will Break Out With a Story": Complicating Mexican Immigrant Masculinities through Counternarrative Storytelling." Scholarship @ Claremont, 2012. http://scholarship.claremont.edu/scripps_theses/98.

Delden, Anna, and Ellen Persson. "The digital nudge : A study of the design principles in digital nudging and it´s presence on ascendant online stores." Thesis, Södertörns högskola, Medieteknik, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-37816.

Ostheimer, Silva Elena, and Verena Unger. "Nudge Me if You Can : Social Nudging to Reduce Water Consumption in Private Households on the Island of Gotland, Sweden." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-447694.

Goepel, Nell, Frida Svanhall, and Maira Rahme. "Strategic Recommendations for the Design of Nudges towards a Sustainable Society." Thesis, Blekinge Tekniska Högskola, Institutionen för strategisk hållbar utveckling, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:bth-10419.

Milanesi, Silvia <1994&gt. "Economia comportamentale e nudge in ambito museale. Analisi del caso studio: “Nudging museum attendance: a field experiment with high school teens”." Master's Degree Thesis, Università Ca' Foscari Venezia, 2019. http://hdl.handle.net/10579/15244.

Houlihan, Shea. "Causal mechanisms of choice architecture interventions in alcohol consumption." Thesis, University of Oxford, 2016. https://ora.ox.ac.uk/objects/uuid:ef75f6d0-30a0-4d85-8224-9dfabcaf9b6a.

Perjons, Andreas. "Investigating Acceptance Among the Swedish Population Towards Energy-Saving Behavioral Interventions." Thesis, Linköpings universitet, Institutionen för datavetenskap, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-177608.

Shakoane, Dimpho Lesego. "A systematised review of the literature related to the use of deterrence and reciprocity messages as a nudge to influence tax compliance behaviour." Diss., University of Pretoria, 2020. http://hdl.handle.net/2263/80519.

McNabb, Lucas. "‘NUDGING’ ENVIRONMENTALLY FRIENDLY BEHAVIOR? EXPERIMENTS ON RECYCLING AT UPPSALA UNIVERSITY." Thesis, Uppsala universitet, Statsvetenskapliga institutionen, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-324717.

Maronati, Lucia <1995&gt. "How cognitive biases affect critical thinking: analysis of the distortions and illusions that make consumer decisions problematic and empirical test using the nudge strategy." Master's Degree Thesis, Università Ca' Foscari Venezia, 2019. http://hdl.handle.net/10579/16003.

Barile, Lory. "Environmental morale : an application of behavioural economics." Thesis, University of Bath, 2014. https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.616874.

Mečár, Matej. "Nudging towards automobile- free living in Stockholm : An analysis of Stockholm's 2015 Green Parking Rates guideline and its impact on mode shift." Thesis, Stockholms universitet, Kulturgeografiska institutionen, 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:su:diva-183352.