Nudging For Better Choices: Applying Behavioral Economics In Retail Marketing

Abstract

Behavioral economics has also offered valuable knowledge on the choices made by consumers and in most instances, conducts systematic bias, and shortcuts that do not exist in the conventional economic scenario. Such results can be implemented into retail marketing in the forms of so-called nudges, which can be used to control consumer preferences but refrain from being restrictive. In this paper, we are going to talk about how the behavioral nudges could be applied in the retail setting and this will involve the application of product placements, default decisions, social proofs, and framing effects. The case study of the research study with both online and physical stores demonstrates how whitewashed interventions may foster desirable consumer behavior that involves the purchase of healthier or encourages sustainable behavior of shopping and become more interested in promotional activities. The findings also mention that the process of nudging is not only helpful in enhancing decision-making in customers, but in improving performance with regards to retailer selling since it increases sales and brand loyalty. The paper brings out the empirical application of behavioral economics in marketing strategy formulation that offers empirical meanings of marketing strategies to deals that want to maximize consumer experiences and make sound and responsible choices.