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 nudging consumers to make better choices/decisions that improve their own lives and that of the people around them.

In this course, we will explore various ‘behavioral levers’ and ‘constructs’ related to consumers’ behavior, which can assist marketers and policy makers to anticipate influences on consumers’ decision making, so as to help consumers make better choices. We will learn about various aspects of consumers’ judgment, decision making, and consequent behavior. We will briefly explore topics such as Prospect Theory & Mental Accounting, various Choice Context specific effects, 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, 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 judgment and choices. By understanding these dynamics behind consumers’ choices and behavior, we can be better equipped to ‘Nudge’ consumers to make better decisions that ensure their own well-being as well as that of the society around them.