Let's begin by exploring the realm of behavioural economics—where the principles of the behavioural sciences intersect with economic theory. In simple terms, this field examines how and why we make financial decisions, drawing on psychological insights. It’s not just an abstract concept but a rigorous area of academic study that advertisers, marketers, and even political campaigns are increasingly using to influence us.
Why is this a concern? We’re all aware that advertisers and marketers have long worked to get us to spend our hard-earned money, and that politicians have used propaganda and falsehoods to sway our opinions. The twist now is that what was once considered the “Art of Persuasion” during the 70s, 80s, 90s, and early 2000s is evolving into a scientific discipline—with human behaviour becoming the test subject.
With the advent of big data and digital marketing tools, political parties and major companies can deliver their messages more rapidly and efficiently. They can track results in real-time, using behavioural economics to employ subtle nudges that steer you toward a particular decision almost instantly.
Behavioural economics isn’t inherently negative. In the right hands, it can serve as a powerful toolkit for achieving positive social and behavioural change—the original intent behind many of its early pioneers. Over the coming months, we’ll share insights and techniques that might inspire you to use similar methods to foster social change in your community or support your cause, always with ethical considerations in mind.
Within behavioural economics (distinct from psychometric profiling and NLP, which will be discussed in later posts), several key categories emerge:
Nudging: Popularized by the book "Nudge," this involves gently steering a potential consumer or decision-maker in a certain direction through indirect, subtle persuasion rather than overt pressure. One well-known example is the hotel room note encouraging guests to reuse their towels by mentioning that 80% of previous guests did the same, saving significant costs for hotels worldwide. Another, if slightly unusual, involves placing a small sticker depiction of a fly in a men's urinal, which helps improve aim and cleanliness in restrooms—a testament to the varied applications of nudges.
Scarcity: This principle plays on the idea that people are drawn to things that are limited or rare. Expressions like “for a limited time only,” “sale ends this weekend,” or “seats are filling fast” leverage the appeal of scarcity, making an offer more attractive.
Framing: This tactic involves presenting a product or idea in a way that makes it more or less appealing, depending on the desired outcome. It’s a technique shared with NLP, using carefully chosen language (and sometimes visual cues) to cast a positive or negative light on a concept. Framing can be combined with social proof and other persuasive strategies to enhance its effectiveness.
Norms: Closely related to social proof, this concept suggests that if everyone else is doing something, it must be the right thing to do. When people see a particular behaviour as standard, they’re more likely to adopt it themselves. Combining norms with nudging, framing, and even NLP can yield very persuasive results.
Defaults: We tend to gravitate toward options that require minimal effort due to our natural inclination for ease. For example, studies on organ donation have found that when being an organ donor is set as the default option on forms—meaning you must opt-out rather than opt in—many people simply leave it as is because changing it demands extra cognitive effort. This principle shows how seemingly small defaults can significantly influence major decisions, whether in political contexts or commercial offerings.
Priming: This technique, used in both NLP and behavioural economics, involves setting the stage for a particular response before it happens. By incorporating subtle cues, individuals are subconsciously guided to think, react, or act in a predetermined way. Advertisers, salespeople, and even political figures use priming to manipulate perceptions and decisions.
Commitment: Once someone publicly commits to a course of action, it becomes a part of their identity, making it hard for them to back out later—even if they initially felt hesitant. Historical examples include prisoners of war who, after being forced to declare their loyalty to a captor’s regime, eventually came to align with that commitment. This effect, where small initial commitments lead to larger ones, can be harnessed in various scenarios, such as encouraging residents to adopt safer driving behaviours. For instance, in one American town, residents were first asked to wear a badge proclaiming “Drive Slow. Save Lives!” Most agreed. Later, when asked to display a similar sticker in their window—and eventually a sign on their front lawn—their earlier small commitment made them more likely to comply.
These techniques, as manipulative as they can be, represent just the tip of the iceberg in the study of behavioural economics. In future posts, we’ll delve deeper into these strategies and uncover how they are used every day by all of us.
If you’re striving to get your message across or rally supporters for your cause, yet find yourself outmanoeuvred by opponents even when your argument is backed by sound facts and figures, it might be that these persuasive techniques are in play on both sides. Perhaps by understanding—and ethically applying—these methods, you can enhance your ability to advocate for social change and counter harmful norms.
What about ethics? This is a hotly debated area that I’m deeply passionate about. With 15 years of experience studying behavioural economics, psychology, NLP, and digital marketing, I’m fascinated by how we make decisions—often irrational ones—and how communication can either protect or mislead us.
You might question my motives for writing this blog. I aim to raise awareness of these techniques and how they’re employed. I firmly believe that anyone reading this will use this information with good intentions, educating themselves to safeguard both themselves and others. Ultimately, my goal is to empower you to not only protect yourself from undue influence but also to harness these insights to drive positive change.
Some resources to consider on this subject –
- The Behavioural Insights Team – set up by the UK government this team of academics and practitioners is tasked with using behavioural and social sciences to tackle social issues in the UK …. That’s right they were set up by politicians… they have done some fantastic work but you could question for all of the work they are proud to show us what are they not showing us? Hopefully nothing >>> behaviouralinsights.co.uk
- In the US there is a similar team called the Social and Behavioural Science Team and their work (that we know of) can be found here https://sbst.gov/
- Also here is something I posted earlier this llast about how the US election and Brexit was won using psychometrics, big data and behavioural marketing (before Cambridge Analytica got into all the trouble and controversy Psychographic Profiling, Big Data and Behavioural Marketing Communications Win Elections and Votes
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Interested in finding out more about Behavioral Insights, Behavioural Economics, Persuasion and Communications Science?
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