A presentation to Which? magazine covering the main ideas behind Behavioural Economics and the way advertisers are using it. The deck also touches on how the theory fits with current government thinking, and how technology is helping brands apply nudge theory even more easily

1. James Caig
Deputy Head of Strategy, MEC
@jamescaig
seewhathappensblog.com

4. Classical Behavioural
economics economics
People are rational Decision-making is
beings always striving irrational, emotional, and
for the best possible influenced by a range of
outcome for the least conscious and
possible effort unconscious factors

5. ALL use misleading rules
of thumb
care disproportionately
OF about what others do
respond to the way
US choices are presented

6. Framing
People make
decisions based on
relative not absolute
information

7. online ONLY $59 68% 16%
magazine ONLY $125 0%
online AND magazine $125 32% 84%

8. Loss
aversion
People work
harder to avoid
losing things than
they do to gain
them

9. Scarcity value
People perceive
things to have
more value the
more scarce and
harder to obtain
they are

10. Chunking
People are more
likely to complete
tasks when
they’re broken
down into little
steps

11. People don’t think how they feel,
they don’t say what they think,
and they don’t do what they say
David Ogilvy

12. There is no pleasure gauge.
All we have is comparison
between similar things.
Marketing can help consumers
make the ‘right’ comparison, and
build a choice architecture which
makes the right choice easy
Nick Chater, IPA, Professor of Behavioural
Science, Warwick Business School

13. 1 Decision-
3
making and
How
the public
brands Where
agenda
have next?
responded
2

14. 1
How
brands
have
responded

16. Challenging value
conventions

17. Re-framing in Retail

18. Dine in for two for £10
£10 off your next pizza
Waitrose Essentials

19. New purchase
levers

22. Context over content

24. Brand stories and
simple actions

26. Decision-
making and
the public
agenda
2

28. We can give citizens more or better information.
We can prompt people to make choices that are in
line with their underlying motivation. And we can
help to encourage social norms around healthier
behaviours.
This new approach represents an important part of the
Coalition Government’s commitment to reducing
regulatory burdens on business and society, and achieving
its policy goals as cheaply and effectively as
possible. It is also part of the Government’s
answer to how we can spend public money
more effectively.
Applying behavioural insight to health,
Cabinet Office Behavioural Insights Team, 2011

32. THE POWER OF THE CROWD
Consumers
working together
for a better deal
Protecting consumer feedback
and improving public sector
choice tools
Better access to
performance and
complaints data

33. THE POWER OF INFORMATION
Making informed
choices easier
Richer information
for important
choices

36. 3
Where
next?

40. As tools, technologies
increase people’s ability
to perform a target
behaviour by making it
easier, or restructuring it
BJ Fogg, Persuasive
Technologies, 2002

41. The psychology of UX
1) People will do the least amount of work possible to get a task done
2) People have limitations
3) People make mistakes
4) Don't make people remember things from one task to another
5) People look to others for guidance on what they should do, especially
if they are uncertain
6) People are easily distracted
7) People need feedback
8) Committing to a small action makes people much more likely to later
commit to a larger action
http://uxmag.com/articles/the-psychologists-view-of-ux-design

45. Making behaviour visible makes
participation more likely