Question

Do you think the use of behavioral nudges should be expanded? Suppose an economic analysis determined the efficient choice for the average consumer, what are the pros and cons of making the average efficient choice for the population a default that consumers would have to override?

Answer 1

Use of behavioural nudges should definitely be expanded beyond customer preference and perceptions such that product is viewed with better perspective and probability to sell is efficient.

Efficient choice always means making consumer better off and hence he gets maximum cost optimization while meeting his preference, taste and wants. However the downside being he may reject choices which may be less efficient but would have more cost savings, higher durability, better aesthetics,etc.

To over ride efficient choices, consumers must be well informed of better alternative to efficient choices and their key benefits to override an average consumers perception of an efficient choice.