Shannon Duncan, PhD Candidate, The Wharton School; Marissa Sharif, Marketing, The Wharton School
Abstract: Marketers and policymakers often use nudges to help consumers make welfare-increasing decisions, such as encouraging physically and mentally healthy choices. This research explores when one nudge is more effective than another. More specifically, it demonstrates nudges focusing on telling consumers how to do something are more effective than nudges telling consumers how and why to do something. This is because listing the reasons why a consumer should do something creates the potential for a mismatch between the listed reasons and a consumer’s personal reasons for considering engaging in a behavior. This mismatch, in turn, leads consumers to believe said behavior will benefit their quality of life less than they might have believed otherwise. These findings deepen our understanding of when and why certain nudges work, as well as the use of reasons in persuasive arguments. Importantly, the results suggest that, when choosing nudges, practitioners should be cautious about including a list of reasons why a consumer should take that action.