During the last ten years or so simple economic theory around consumer purchasing practices has changed. Traditional thinking was that people made rational logic based purchasing decisions .
Behavioral studies conducted early in the first decade of the twenty-first century have debunked that myth. In general it has been shown there are numerous examples of simple behavioral nudges that can consistently drive actions that are neither necessarily the most logical or rational.
Some Examples
Consider this simple food consumption test. Over months of testing with an identical buffet menu and fixed patronage it was demonstrated a statistically significant differnce in food comsumption when the only varible was plate size.
Larger plates led to greater consumption even though the logical decision would be portion control, for health purposes. It is widely known that over-eating is not a healthy practice.
For food sale economics this practice of increasing food sales by nudging the customers with larger plates and increasing sales is a simple example of the use of behavioral economics.
Think about a case where you have been in a supermarket studying a variety of brands, basically the same thing; for example canned beans, and you are trying to decide which to choose. Studies have shown if one of the products is labled “best seller” or “most sold”, you will have a bias to choose it.
Although there is no rational reason for such behaviors it has been demonstrated to be the case through many independent studies. This is just another example of nudging behavior through subtle cues that don’t require a logical underpinning.
Be Cautious of Your Instinctual Behaviours
The moral to the story is simple. Before leaping into that purchase decision override your subconscious thinking, do a logic check as to what is truly the best behavior for you, then proceed.
