Nudge

A 'nudge' is a subtle intervention, often involving a slight alteration in the environment or presentation of information, designed to influence people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. It relies on understanding human biases and cognitive shortcuts to guide choices towards a desired outcome. Nudges are characterized by their non-intrusive nature, focusing on making a particular option easier, more attractive, or more salient without coercion. They are commonly used in areas like public policy, marketing, and behavioral economics to promote positive behaviors, such as healthy eating, saving money, or complying with regulations.

Nudge meaning with examples

• The cafeteria placed healthier food options at eye level and the less healthy choices further back, a simple 'nudge' that subtly encouraged students to choose more nutritious meals. This method proved incredibly effective in shifting dietary choices without restricting any menu items.
• To increase retirement savings, employees were automatically enrolled in the company's 401(k) plan, but with an 'opt-out' option. This 'nudge' increased participation significantly because most people tend to stick with the default option.
• A supermarket displayed 'Sale' signs prominently next to reduced-price products to 'nudge' customers toward buying them. This form of encouragement can improve sales for many of the products that need to be purchased.
• A website used social proof by displaying how many others had already purchased a certain product to 'nudge' visitors towards making the same purchase. This method of influencing purchasing decisions can be very successful.
• At the public library, they placed overdue fines at the bottom of the letter to let people know when they returned them. This 'nudge' reminded patrons that time was important.