Finals: Lesson 14 Nudge Theory

• Nudge Theory -  is a behavioral science concept that suggests that positive reinforcement can influence and

  motivate the decisions that consumers make.
• Types of Nudge

  1. Good Nudge
  2. Bad Nudge
• Good Nudge - can be defined as a strategy of marketing that looks to influence the behavior of a consumer in a positive manner.
• Bad Nudge - is a type of nudge from a marketer which influences the consumer to purchase a product that may have a negative benefit for the consumer.
• Nudging - can be defined as a subtle method used by marketers to influence consumer behavior without the consumer actively being aware of it.
• 3 Principles of Nudging

   

  1. The nudging should be transparent and not be made to mislead or confuse the consumer.

   

  2. Opting out of nudging should be as simple as the clicking of a mouse.

   

  3. The intent should be that the nudging will benefit the consumer.
• Bandwagon Effect - says that people tend to do

  something just because other people are doing it, sometimes ignoring their own beliefs.
• Dual Process Theory - says that we have two modes of decision making.
• Heuristics - efficient rules for decision making or

  mental shortcuts.
• True of False: Good marketers want to do more than persuade consumers to buy their products - they want consumers to change their buying behavior. True
• Method for Changing and Sustaining Consumer Behavior

  1. Optimizing Objective

  2. Avoid Temptations of an Old Habit

  3. Plan Accordingly