Nudge
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Nudge, Changing Consumer Behavior
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Nudge
- 1. NUDGE Your Way To Success! The Secret to Changing Consumer Behavior! Joe Barnes @joebarnes
- 2. 2
- 6. 6 ©Penguin Books, 2008 ISBN: 978 0 14 311526 7
- 7. WHY IS THIS IMPORTANT? Choice has some of life's biggest personal decisions. Internet dating to having a child to choosing what to buy. 7
- 9. Nudge: Dictionary Definition To push slightly or gently, to get someone's attention, prod someone into action, etc. 9
- 10. Nudge Thaler and Sunstein define a nudge as ‘’…altering people’s behavior in a predictable way without significantly changing their economic incentives’’ 10 http://ssrn.com/abstract=1883243
- 11. SO WHAT DOES THAT MEAN? 11
- 12. Nudge Nudges are about designing choices to try to help people make choices in a more simple way. 12
- 13. 13 The Marketing of the Nudge
- 14. NUDGE: Behavioral Economics About choices How people make choices Limiting Choice! Assumes people have limited time 14 Nudging
- 15. NUDGE: Behavioral Economics Create more effective messages How we name their choices (Naming Conventions) Change way we motivate consumers How to “nudge” people into a commitment 15 Nudging
- 17. NUDGE: Behavioral Economics 17 Nudge Example Which Cheese Would You Buy?
- 18. 18 Nudge Example Studies show most people tend to choose the second most expensive item on the list. http://thebusinessofadvertising.blogspot.com/2010/04/choice-architecture-and-advertising_9693.html
- 19. SO WHAT DOES THAT MEAN? HOW YOU FRAME PRICES MAKES A DIFFERENCE! 19
- 20. Nudge: Framing Gym Memberships: Do you want to spend $600 for the annual membership or $12 week? 20 PHOTO: http://blog.livewellmarket.com/wp-content/uploads/2012/07/workout.jpeg http://www.rotman.utoronto.ca/-/media/Images/Programs-and-Areas/behavioural-economics/GuidetoNudging-Rotman-Mar2013.pdf
- 21. EXAMPLE HOW TO MOTIVATE PEOPLE THROUGH A NUDGE 21
- 22. NUDGE: Behavioral Economics 22 Nudge a Commitment http-www.youtube.comwatchv=cFdCzN7RYbw
- 23. SO WHAT DOES THAT MEAN? PEOPLE WILL MOVE FORWARD IF YOU ASK FOR A SMALL COMMITMENT FIRST! FIRSMAKES A DIFFERENCE! 23
- 24. 4 Types of Nudges Mindful nudges guide people to a more controlled state such as eating healthier, stop smoking, exercising and saving more money. Mindless nudges use emotion or framing to sway decisions that people make. Encouraging nudges facilitate the implementation or continuation of a particular behavior. Discouraging nudges hinder or prevent behavior that is believed to be undesirable. 24 http://www.rotman.utoronto.ca/-/media/Images/Programs-and-Areas/behavioural-economics/GuidetoNudging-Rotman-Mar2013.pdf
- 25. 4 Types of Nudges Mindful nudges guide people to a more controlled state such as eating healthier, stop smoking, exercising and saving more money. Mindless nudges use emotion or framing to sway decisions that people make. Encouraging nudges facilitate the implementation or continuation of a particular behavior. Discouraging nudges hinder or prevent behavior that is believed to be undesirable. 25 http://www.rotman.utoronto.ca/-/media/Images/Programs-and-Areas/behavioural-economics/GuidetoNudging-Rotman-Mar2013.pdf
- 26. 4 Types of Nudges Mindful nudges guide people to a more controlled state such as eating healthier, stop smoking, exercising and saving more money. Mindless nudges use emotion or framing to sway decisions that people make. Encouraging nudges facilitate the implementation or continuation of a particular behavior. Discouraging nudges hinder or prevent behavior that is believed to be undesirable. 26 http://www.rotman.utoronto.ca/-/media/Images/Programs-and-Areas/behavioural-economics/GuidetoNudging-Rotman-Mar2013.pdf
- 27. 4 Types of Nudges Mindful nudges guide people to a more controlled state such as eating healthier, stop smoking, exercising and saving more money. Mindless nudges use emotion or framing to sway decisions that people make. Encouraging nudges facilitate the implementation or continuation of a particular behavior. Discouraging nudges hinder or prevent behavior that is believed to be undesirable. 27 http://www.rotman.utoronto.ca/-/media/Images/Programs-and-Areas/behavioural-economics/GuidetoNudging-Rotman-Mar2013.pdf
- 28. 4 Types of Nudges Mindful nudges guide people to a more controlled state such as eating healthier, stop smoking, exercising and saving more money. Mindless nudges use emotion or framing to sway decisions that people make. Encouraging nudges facilitate the implementation or continuation of a particular behavior. Discouraging nudges hinder or prevent behavior that is believed to be undesirable. 28 http://www.rotman.utoronto.ca/-/media/Images/Programs-and-Areas/behavioural-economics/GuidetoNudging-Rotman-Mar2013.pdf
- 29. 29 Nudge By Asking The Right Questions!
- 30. 30 Nudge By Asking The Right Questions! 2009: Daniel Pink Drive: The Surprising Truth About What Motivates Us
- 31. 31 Nudge By Asking The Right Questions! People want choice. People want autonomy. Autonomy leads to engagement. Use non-controlling language.
- 32. 32 Nudge By Asking The Right Questions! https-//www.youtube.com/watch?v=WAL7Pz1i1jU&feature=youtu.be
- 33. NUDGE: Behavioral Economics Science shows we are likely to reciprocate when someone does something nice for us! Restaurant tipping example. 33 Nudge: Reciprocation
- 34. NUDGE: Behavioral Economics 34 Nudge: Reciprocation http-www.youtube.comwatchv=cFdCzN7RYbw
- 35. CAN WE HAVE TOO MUCH OF A GOOD THING? TOO MANY CHOICES? 35
- 36. Participants choosing from a selection of 30 chocolates instead of 6 chocolates were “more dissatisfied and regretful of the choices they made.” 36 Iyengar, S. (Columbia) & Lepper, M. (Stanford), 2000, When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and Social Psychology, 79, 995-1006
- 37. 37 • http://www.slideshare.net/rnja8c/paradox-of-choice-2139360?from_search=12 The paradox of choice: Too many good options?
- 38. 38 Too many good options? http://blog.rejoiner.com/wp-content/uploads/2012/08/choice.png
- 40. NUDGE: Behavioral Economics “As the number of choices keeps growing, negative aspects of having too many options begin to appear.” 40 Too Much of a Good Thing? Psychologist and Author Barry Schwartz http://www.swarthmore.edu/SocSci/bschwar1/Choice%20Chapter.Revised.pdf
- 41. NUDGE: Behavioral Economics “As the number of choices grows further, the negatives escalate until, ultimately, choice no longer liberates, but debilitates.” 41 Too Much of a Good Thing? Psychologist and Author Barry Schwartz http://www.swarthmore.edu/SocSci/bschwar1/Choice%20Chapter.Revised.pdf
- 42. 42 Too Many Choices Isn’t Good! https-//www.youtube.com/watch?v=VO6XEQIsCoM Psychologist and Author Barry Schwartz
- 43. WHAT DOES THAT MEAN? TOO MANY CHOICES CAN LEAD TO DECISION PARALYSIS! 43
- 44. ONE BUSINESS HAS FIGURED OUT THE SOLUTION! WHICH ONE? 44
- 45. 45
- 47. 47 Mixed Nuts: One Choice
- 48. 48 Wiper Blades: One Choice
- 49. 49 Cherry Tomatoes: One Choice
- 50. 50 Golf Clubs: One Choice
- 53. 53 nal survey included this question, it increased purchase http://www.slideshare.net/sgmitch/nudge09
- 54. THE WORDS WE USE “NAMING CONVENTIONS” 54
- 55. “10 out of 100 die.” vs. “90 out of 100 are cured.” 55 Naming Conventions
- 56. 56 (c) MOZ.com
- 57. Naming Conventions Hamburger “90% Fat Free” vs. “10% Fat” Which Do You Want to Eat? 57
- 59. 59 VISUAL CLUES
- 61. NPR: “Urinalfly” “peel-off flies for school and home bowls” 61 The NUDGE Works http://www.npr.org/templates/story/story.php?storyId=121310977
- 62. Nudge Nudging Is Also About Whether You Give Consumers A Choice or You Give Them a Default Choice Automatically. 62
- 63. EXAMPLE 63
- 64. Nudge Large railroad Europe made small change to its website so seat reservations would be included automatically with ticket purchases (at an added cost of 1-2 euros), unless the customer unchecked a box on the online booking form. . 9% of tickets included reservations before the change, 47% did after, earning the railroad an additional $40 million annually. 64 GoldsteinJohnsonHerrmannHeitmann_NudgeCustomers_HBR08.pdf
- 65. SO WHAT DOES THAT MEAN? Use a NUDGE as a small default setting for any product/service that provides benefits to consumers. 65 GoldsteinJohnsonHerrmannHeitmann_NudgeCustomers_HBR08.pdf
- 66. How Nudge Is Used In Politics 66
- 67. 67 ‘The Victory Lab’: The Science Behind Winning Campaigns Sasha Issenberg - Columnist for Slate http-//www.youtube.com/watch?v=FnDoRNV4i_I
- 68. SO WHAT DOES THAT MEAN? ASK FOR A NUDGE… 68
- 69. NUDGE Online 69
- 70. 70 (c) MOZ.com Demonstrate Social Proof
- 71. 71 From: Get Satisfaction (c) MOZ.com Play The Name Game
- 73. 73 From: Social Media Examiner (c) MOZ.com Limit Choice TOO MANY CHOICES
- 74. 74 Check out this study: http://www.staging.omniture.com/en/resources/articles/conversion/ringcentral_boosts_conversions (c) MOZ.com Limit Choice NUDGE: Fewer Choices Lead to More Action
- 75. WHAT DOES THAT MEAN? DECISION ARCHITECTURE “An effective design enables people to easily focus on the right things and make meaningful evaluations.” 75 http://uxmag.com/articles/decision-architecture-designing-for-decision-making
- 76. 76(c) MOZ.com Nudge Over Time, Not All At Once
- 77. SO WHAT DOES ALL OF THIS MEAN? 77
- 79. THE MORE CHOICES WE HAVE, THE MORE DIFFICULT THE DECISION. 79
- 81. 81