Nudging as a marketing strategy

Abstract

The classic economic theory is based on individual’s rationality when making decisions. Consequently, theoretically speaking, individuals have sufficient knowledge and abilities to take the most convenient and best decisions. Nevertheless, in the last decades, it has been demonstrated the irrationality of people in rulemaking, governance, and decision-making, casting doubts about the possibility of making interventions to modify individuals’ behaviour to improve their social and self-welfare. As a result, it has emerged behavioural economics, which focus on the many different factors and processes that affect decision-making in the pursuit of the most beneficial and optimal behaviour, and with it appeared nudges, which are a mechanism of soft intervention really helpful and efficient in changing individuals’ behaviour. This paper analyses and reviews the branch of nudging in the field of behavioural economics, through the author’s Cass R. Sunstein and Richard H. Thaler perspective, developed in their book “Nudge: Improving decisions about health, wealth, and happiness”. In addition, a study of the application of nudges in different fields like marketing, society, wealth, and environment would be presented; also, it would be developed some criticism and limitations that fall upon the nudging theory.