Draft:Nudge marketing

• Comment: Wikipedia is not the location for "an emerging discipline" we only report on topics that have already emerged! Theroadislong (talk) 18:41, 21 January 2024 (UTC)

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Nudge marketing is an emerging discipline that focuses on consumer behavior.

This discipline seeks to motivate a person to behave in a particular way without ever attempting to coerce them into doing so. This approach's motivator is interested in acting on a variety of levers related to a consumer's decision-making process in order to persuade him or her to adopt a particular behavior at a relatively cheap cost..

The emergence of Nudge Marketing

Nudge made an appearance in the 1970s and went through two significant phases of growth. During that same period, when many doubted the effectiveness of this kind of marketing, a certain Daniel Kahneman developed an interest in the decision-making processes of the brain and the causes of resistance to change. They believe that thought occurs in two stages: the first system of thought is fast and governed by emotions and instinct, and the second, slower, is based on analysis and reflection  (Thaler & Sunstein, 2008).Richard Thaler and Cass Sunstein were influenced by his beliefs. Before Thaler and Sunstein's (2008) research, not much was understood about the function of nudge. Their theory, which they outlined in their book Nudge, contributed to the spread of this idea. This pair contributed to the development of nudge marketing in the 1970s. In 2017, Richard Thaler was also awarded the Royal Swedish Academy of Sciences' Nobel Prize in Economics. The second stage of the development of nudge marketing is now covered in this analysis: The concept of "behavioral economics" was bolstered in 2002 by the then-Nobel Prize winner in economics, Daniel Kahneman, who explained that people's decisions are irrational because they are impacted by cognitive biases.Thinking, Fast and Slow According to Thaler and Sunstein (2008), a cognitive bias is an error in how information is processed cognitively. A systematic break from reality in logical and reasonable thought is referred to as bias. Cognitive biases can be identified when there are contradictions or mistakes in a person's reasoning or judgment. They cause a subject to assign varying amounts of value to facts of the same kind. The context in which the person finds himself and the social norms that are applied to him can activate these mental shortcuts, which are (nearly) automatic and keep the person from thinking clearly.

Objectives and challenges

Nudge marketing's primary goal is to persuade people to behave differently without forcing them into doing so.

The person is never pushed into choosing the solution that they believe is best by the entity that initiated the approach, whether it is a business or another one. The person still has free will. Nonetheless, the sender will advocate for a choice by emphasizing the advantages for the user

The nudging technique is predicated upon several principles:

• Messenger: The sender of the message frequently influences the consumer.

• Incentive: customer responses to presented choices are directed by mental shortcuts.

• Norms: An individual is impacted by the actions of others as a consumer (social pressure, good morals, ethics, etc.).

• Default: the consumer tends to default to selected or preferred selections.

• Salience: attention is directed to what is new and relevant.

• Primacy: Unconscious triggers impact behavior.

• Emotions: A consumer's emotional connections have a big impact on their behavior.

• Consistency: Customers want their public promises to be kept.

• Ego: People behave in a way that makes them feel good about themselves.

E-commerce application

Research done by International Journal of Science and Research (IJSR) show four key categories of nudges that are commonly used in e-commerce:

•  Product demand is highlighted

Customers can be informed about the popularity of products they are interested in and how many people are currently viewing or purchasing those products. This creates a sense of urgency and scarcity, motivating customers to make purchases before they miss out.

•   An engaged audience is built

Nudge marketing notifications are designed to capture customer attention and encourage them to interact with an e-commerce website or app. These notifications can include discounts, exclusive promotions, or limited-time offers to entice customers to engage further.

•   Conversion rates are increased

Nudge marketing notifications can subtly guide customers towards desired actions, such as adding products to their cart or completing a purchase. By using techniques like default options, highlighted calls-to-action, or limited-time discounts, businesses can increase the likelihood of conversions.

• Customers are reached on multiple platforms

Nudge marketing notifications can be delivered across different devices, including desktops, laptops, tablets, and smartphones. This ensures that businesses can reach their target audience regardless of the specific device they are using.