A nudge in the right direction

Aug. 9, 2021

  • Profile Picture of Crystal Reeck


When giving customers a set of options, a company can structure them in a way to encourage a particular choice. Crystal Reeck found that these nudges are most effective with consumers with certain traits, such as those with a lower socioeconomic status (SES) and less background knowledge. 

These findings can be used to address choice disparities that exist between SES classes, as those on the lower end of the spectrum are not given the same access to the knowledge and experiences of their counterparts. Companies can reduce these disparities with nudges that point consumers toward choices that are beneficial to them. For example, they could make the default product size one with a lower cost-per-unit rather than one that is a more profitable or revenue-generating choice.