MKT46030 Nudging Consumer Choices

Academic Year 2021/2022

A good marketer will know that consumers are not always rational. Consumers can sometimes make choices and decisions that appear to be against their best interest. A great marketer, on the other hand, will know that there is actually a systematic rationale behind why customers tend to behave in such a seemingly irrational manner. A great marketer can use this knowledge to not only help the interests of the firm, but also to be a responsible human being by helping customers make better choices and decisions that improve the lives of customers and the people around them.

In this course, we will explore various ‘behavioral levers’ that are available for marketers to influence consumers’ decision making and help consumers to make better choices. To do so, we will learn about various aspects of consumers’ judgment and decision making. We will briefly explore topics such as Prospect Theory, Mental Accounting, Context Effects and Consumer Mindsets etc. We will also explore the role of Social Influences in shaping consumer behavior by understanding the role and influences of certain social factors such as Norms, Power, Social Comparison etc. Lastly, we will also discuss how certain aspects central to the consumer, such as how they think about themselves and how they want to express themselves, can also influence their choices and judgment. By understanding these dynamics behind consumers’ choices and behavior, we can be better equipped to ‘Nudge’ consumers to make better decisions that ensure their well-being as well as that of the society around them.