Nudging Behaviour in Marketing Dynamics: Behaviour Economics and Marketing - An Interlinking

Posted: 20 Jun 2019

See all articles by Shailey Singh

Shailey Singh

Symbiosis International University - Symbiosis Law School, Pune

Date Written: June 13, 2019


Economics is gradually showing a change in school of thought with a shift from an optimization based quantitative approach towards a more consumer-centric qualitative approach. The most controversial yet highly acclaimed and recognized concept of the year comes from the award winning contributor to Behavioural Economics – Noble Prize winner Richard Thaler for “Nudge Theory”.

Nudging has perhaps been one of the biggest contributions to Behavioural Economics in recent times. Behavioural Economics is a relatively new field that is revolutionizing the way we look at human behaviour and is creating a significant impact on related genres of Psychology, Decision-making and Management. Nudges can be used by both businesses and government to shape the behavior of employees, customers, and citizens. Prestigious Ivy League like Yale School of Management now offer programs to senior executives of global conglomerates in understanding Behavioural Economics for creating breakthrough managerial decisions and marketing ideas. Parallel to Behaviour Insights Team of Public Policy schools like the Harvard Kennedy School of Government, there is Center for Customer Insights Teams on the same lines at top Ivy League colleges and both provide insights into behavioural dynamics of citizens and customers respectively. Hence we do understand that Behavioural Economics is being closely associated with Psychology and Consumer Behaviour and when a breakthrough concept like Nudging is acclaimed worldwide in Behaviour Economics, it opens avenues for marketers and companies to understand how Nudge Marketing can be used to understand consumer behaviour better and help the consumer to make more informed decisions.

This perspective paper analyzes the relevance and importance of Behavioural Economics and Nudging concepts for Marketing by introducing few of the core principles of the disciplines and depicts how they are strongly interlinked. Secondly it discusses the practical implications/methodological usage of Nudging and Behavioural Economics for Marketing with special emphasis for present era digital marketing. Given the short time span since the introduction of Nudging and its initial utility in public policy, one could say that the current status of its implications in Marketing is still nascent and has plentiful scope for continuous innovation. Though some companies are utilizing Behavioural concepts to their benefit but for substantive change to be brought in, innovative marketing strategies have to be developed. This perspective paper will help industry and researchers to understand the importance of this inter-disciplinary interlink and therefore, develop some game-changing strategies. In this context, several questions such as what is Behavioural Economics and why it is important, what is Nudging, how does it impact consumer behaviour, etc., become important to understand.

Keywords: Nudging, Marketing, Choice Architect, Cognitive Bias, Nudge Marketing, Behavioural Economics

Suggested Citation

Singh, Shailey, Nudging Behaviour in Marketing Dynamics: Behaviour Economics and Marketing - An Interlinking (June 13, 2019). Available at SSRN:

Shailey Singh (Contact Author)

Symbiosis International University - Symbiosis Law School, Pune ( email )

Senapati Bapat Road
Pune, Opp. Pune Airport, New Airport Road, 411 004

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