Nudges can be described as small actions that try and encourage positive behaviour (Thaler & Sunstein, 2008) these small actions are proposed by another person, this is done mostly by the government in the behavioural insights team (Short & Thomas, 2014). Thaler and Sunstein (2008) suggest that there are several purposes for nudges, for self-control, for difficulty making decisions and making choices with time constraints.
Loss aversion, as described by Thaler and Sunstein (2008) is when consumers show preference to not losing an object over gaining a product. This is when people show they will only let an item be sold for a certain amount, this price is higher than the amount they state they would buy a product for. An example of loss aversion in the consumer world could be when people sell gold jewellery. https://www.youtube.com/watch?v=eXSnfd7nGKM. This cash 4 gold advert claims that they are top buyer for gold, this would try and reassure consumers that they would be getting the best price for their gold by going to cash 4 gold. Another cash 4 gold advert used rapper MC Hammer and Ed McMahon, a TV presenter, by using celebrities this could portray that this service does get the best price and that’s why celebrities use this service. https://www.youtube.com/watch?v=TrNipeP4HvQ. However, nudges are normally used to promote positive behaviour changes and cash 4 gold could be seen as having no direct positive behaviour changes. Although non-directly if people are behind on paying bills and by selling their gold they can pay for the bills, this could be seen as positive behaviour change.
A nudge campaign that is ran by the government is the healthy living change 4 life campaign. Although I have already blogged about the change for life campaigns, I think that it is a perfect example of nudges in the positive direction.
This particular ad is not trying to get people to switch to drinking water full time but instead a nudge to switching from full sugar fizzy drinks to diet drinks in order to reduce the amount of intake of sugar. At the end there is a method of contacting change for life to order a smart swapper, the smart swapper is a nudge diagram in itself to promote healthier versions of what people consume.
Although nudges are for positive change it can be suggested that the government and others can use this to manipulate the nation without us being aware, like making a choice (nudge) but without the choice (Short & Thomas, 2014: Thaler & Sunstein, 2008). However, we are always being influenced whether it be by adverts or social/peer influences and if the nudges are for our benefit then we should welcome the nudges that come but be aware that we are being nudged.
References:
Short, F. E., & Thomas, P. (2014). Core approaches in counselling and Psychotherapy. Routledge: UK.
Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving decisions about health, wealth, and happiness. Yale University Press.
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