Shopper Marketing - June 2016 - S7


Culture of Irrationality
M
arketers are relatively new to the field of behavioral
economics, but they're in good company. In 2014,
the U.S. government formally introduced a behavioral insights team charged with making federal programs
simpler and more effective. And after all, if the science can
do that, it is certainly reasonable to think it could improve
marketing.
Behavioral science
has the power to leverage the intuitive
and irrational-yet often predictable-ways
in which human beings make decisions.
In the decoy effect, for
example, people will
gravitate toward one
of two options when
also presented with
a third option that is
"asymmetrically dominated." Dan Ariely illustrated this concept
in his book Predictably
Irrational by suggesting that if people were given three choices of honeymoons-
Paris (with free breakfast), Rome (with free breakfast) and
Rome (no breakfast included), most would likely choose
Rome with the free breakfast. In this case, Rome with no
breakfast is the decoy
that leads to a much
clearer choice.
Awareness of these
principles is spreading
throughout our culture. The Obama Administration labeled its
new team the "Nudge
Unit," a homage to the
concept of a nudge
first introduced in a
book about improving decisions related
to health and wellness
by Richard Thaler and
Cass Sunstein back in
2008.

In that writing, a
nudge was defined as
"any factor that significantly alters the behavior of humans." The authors cited an example
of a cafeteria in a large
public school system
that was redesigned
using behavioral insights to get students
to choose healthier
foods. The program
was successful simply
by rearranging the location and placement
of food items-without
a single change to the menu-in way that triggered automatic responses and nudged students to make smarter choices.
"School children, like adults, can be greatly influenced by
small changes in the context," the authors wrote."
Our federal government is slowly
learning this lesson.
Administrators now
acknowledge
that
a complex application form for student
aid can cause some
students to delay or
forgo completing the
application, or put
off going to college
altogether. On the
contrary,
streamlining the process
(such as by pre-populating a form with
families' existing tax
return data) can significantly boost enrollment rates.
Plus, federal agencies have been able to increase the
revenue they receive from government vendors by simply
putting the signature box at the top of a form that the
companies used to report the rebates they owed Uncle
Sam, thereby nudging the respondents to be more honest in the process.
Marketers: Can your "nudge unit" be far behind?
n
7



Table of Contents for the Digital Edition of Shopper Marketing - June 2016

Contents
Shopper Marketing - June 2016 - Intro
Shopper Marketing - June 2016 - 1
Shopper Marketing - June 2016 - 2
Shopper Marketing - June 2016 - 3
Shopper Marketing - June 2016 - Contents
Shopper Marketing - June 2016 - 5
Shopper Marketing - June 2016 - 6
Shopper Marketing - June 2016 - 7
Shopper Marketing - June 2016 - 8
Shopper Marketing - June 2016 - 9
Shopper Marketing - June 2016 - 10
Shopper Marketing - June 2016 - 11
Shopper Marketing - June 2016 - 12
Shopper Marketing - June 2016 - 13
Shopper Marketing - June 2016 - 14
Shopper Marketing - June 2016 - 15
Shopper Marketing - June 2016 - 16
Shopper Marketing - June 2016 - 17
Shopper Marketing - June 2016 - 18
Shopper Marketing - June 2016 - 19
Shopper Marketing - June 2016 - 20
Shopper Marketing - June 2016 - 21
Shopper Marketing - June 2016 - 22
Shopper Marketing - June 2016 - 23
Shopper Marketing - June 2016 - 24
Shopper Marketing - June 2016 - 25
Shopper Marketing - June 2016 - 26
Shopper Marketing - June 2016 - 27
Shopper Marketing - June 2016 - 28
Shopper Marketing - June 2016 - 29
Shopper Marketing - June 2016 - 30
Shopper Marketing - June 2016 - 31
Shopper Marketing - June 2016 - 32
Shopper Marketing - June 2016 - 33
Shopper Marketing - June 2016 - 34
Shopper Marketing - June 2016 - 35
Shopper Marketing - June 2016 - 36
Shopper Marketing - June 2016 - 37
Shopper Marketing - June 2016 - 38
Shopper Marketing - June 2016 - 39
Shopper Marketing - June 2016 - 40
Shopper Marketing - June 2016 - 41
Shopper Marketing - June 2016 - 42
Shopper Marketing - June 2016 - 43
Shopper Marketing - June 2016 - 44
Shopper Marketing - June 2016 - 45
Shopper Marketing - June 2016 - 46
Shopper Marketing - June 2016 - 47
Shopper Marketing - June 2016 - 48
Shopper Marketing - June 2016 - 49
Shopper Marketing - June 2016 - 50
Shopper Marketing - June 2016 - 51
Shopper Marketing - June 2016 - 52
Shopper Marketing - June 2016 - 53
Shopper Marketing - June 2016 - 54
Shopper Marketing - June 2016 - 55
Shopper Marketing - June 2016 - 56
Shopper Marketing - June 2016 - 57
Shopper Marketing - June 2016 - 58
Shopper Marketing - June 2016 - 59
Shopper Marketing - June 2016 - 60
Shopper Marketing - June 2016 - 61
Shopper Marketing - June 2016 - 62
Shopper Marketing - June 2016 - 63
Shopper Marketing - June 2016 - 64
Shopper Marketing - June 2016 - 65
Shopper Marketing - June 2016 - 66
Shopper Marketing - June 2016 - 67
Shopper Marketing - June 2016 - 68
Shopper Marketing - June 2016 - 69
Shopper Marketing - June 2016 - 70
Shopper Marketing - June 2016 - 71
Shopper Marketing - June 2016 - 72
Shopper Marketing - June 2016 - 73
Shopper Marketing - June 2016 - 74
Shopper Marketing - June 2016 - 75
Shopper Marketing - June 2016 - 76
Shopper Marketing - June 2016 - 77
Shopper Marketing - June 2016 - 78
Shopper Marketing - June 2016 - 79
Shopper Marketing - June 2016 - 80
Shopper Marketing - June 2016 - 81
Shopper Marketing - June 2016 - 82
Shopper Marketing - June 2016 - 83
Shopper Marketing - June 2016 - 84
Shopper Marketing - June 2016 - 85
Shopper Marketing - June 2016 - 86
Shopper Marketing - June 2016 - 87
Shopper Marketing - June 2016 - 88
Shopper Marketing - June 2016 - 89
Shopper Marketing - June 2016 - 90
Shopper Marketing - June 2016 - 91
Shopper Marketing - June 2016 - 92
Shopper Marketing - June 2016 - 93
Shopper Marketing - June 2016 - 94
Shopper Marketing - June 2016 - 95
Shopper Marketing - June 2016 - 96
Shopper Marketing - June 2016 - 97
Shopper Marketing - June 2016 - 98
Shopper Marketing - June 2016 - 99
Shopper Marketing - June 2016 - 100
Shopper Marketing - June 2016 - 101
Shopper Marketing - June 2016 - 102
Shopper Marketing - June 2016 - 103
Shopper Marketing - June 2016 - 104
Shopper Marketing - June 2016 - S1
Shopper Marketing - June 2016 - S2
Shopper Marketing - June 2016 - S3
Shopper Marketing - June 2016 - S4
Shopper Marketing - June 2016 - S5
Shopper Marketing - June 2016 - S6
Shopper Marketing - June 2016 - S7
Shopper Marketing - June 2016 - S8
Shopper Marketing - June 2016 - S9
Shopper Marketing - June 2016 - S10
Shopper Marketing - June 2016 - S11
Shopper Marketing - June 2016 - S12
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