Siobhán Collins, Insight and Branding Specialist, Bord Bia – Irish Food Board
Human behaviour is highly habitual and irrational. Both governments and marketers use insights from behavioural science to influence people’s choices. Governments try to get behavioural change by either preventing bad behaviours (such as crime) or encouraging good behaviour (such as recycling). Increasingly they are relying on nudge theory to achieve the desired result. Nudge theory is the psychological technique which seeks to subtly nudge people into changing their behaviour. The UK behavioural Insight Team (BIT), (coined the “ nudge unit” by the media) was set up in 2010 to encourage better decision making by citizens. For example reminder tax letters in the UK including a statement of how many people in your area have already paid their taxes saw an increase in payments by 15%. In Ireland, the smoking ban, the on-pack traffic light system and plastic bag tax are examples of nudge theory achieving behavioural change.
So how can we use nudge theory to grow brands? In marketing, nudge theory is widely used to influence consumers. For example, people rarely change the default choice of Google as their search engine, restaurants place a very high priced option on their menu to make other options look more attractive.
Here are some examples of how you might use nudge theory to drive your brand growth:
- Don’t overwhelm customers with choice – less options generates increased decision making and more satisfaction with their choice.
- By creating scarcity (e.g. limited edition products or no more than 3 units per customer), consumers perceive they are getting something exclusive and also are driven by a fear of missing out.
- Endorsements by credible opinion leaders e.g. chefs or awards lend “social proof” to your brand.
- Suggesting how your brand helps consumers lead a healthier life by adopting a new habit e.g. reducing sugar consumption, creates a win/win for both manufacturer and consumer.
- Be aware of how identical product claims expressed differently can be interpreted e.g. 90% fat-free vs contains 10% fat
- Where you place your product in store may send subtle messages about your brand – for example, placement in chilled units suggests freshness.
Nudging does not involve strongly enticing or cajoling consumers to change their behaviours, it is simply making the desired behaviour easier.
For more information please contact siobhan.collins@bordbia.ie
