This is an important study that how is the nudge altering the consumer behavior and taking a good decision? The nudges are debate across various disciplines. The policymakers and firm are often interested in trying to figure out better ways of giving people information. So, they can make smarter decision for society. The nudge is a social psychology and behavioral economic concept which is shaping the people or consumer behavior and decision making as well as can be influenced by subtle change in their environment.
We need to understand the psychology of everyday life and mild it with economics. There are four principles to make a better decision. Do calculation, translate information to personal objective, provide the relative comparison and expand important outcome. So the nudge is respecting the freedom and positive change.
The consumer buying behaviors divide into two categories rational and impulsive buying behavior. The compulsive buying may be continuing and repetitive the ideas, so it is estimated the results of some event and negative feeling. So the nudge is a flexible approach through which we are using choice architecture, social influence, framing, security, urgency and loss aversion.
The choice architecture is the architect or environment where the policymaker is taking decisions. For the economists the nudges are acting as cost benefit calculus in choices. The nudge is an important impact on consumers that increases the desired behavior, simplify decision making and promote positive change. As well as the nudge is an effective impact on the ethical considerations such as freedom of choice and transparency and disclosure. The nudge strategy also explained the present choices. Additionally, the nudge is also the idea of non-intrusive because the policy maker did not forbid and force the consumer in decision making to achieve the policy.
The Pakistan policymakers and firms have failed in nudging; because we haven’t been designed the proper taxes collection and tariff. Therefore, we have been facing budget deficit and smuggling problem since independence. The people are not influenced with ours designed law and regulation. We have not motivated the firm to adjust the business structure according to the modern format or advanced form. Therefore, we are totally failing to increase the export. It is lack of nudging.
The Pakistan is strategically very important and full of natural resource and four season and agriculture zone. Unfortunately, we have not facilitated the former and failed to give them proper system therefore Pakistan is no more an agriculture country and we facing climate change. We should to be focused on nudging through which the nation can achieve growth. The women play a significant role in country growth like Pakistan. We should give them respect to their hard work in male dominant society, because the population of Pakistan half of women. The nudge is term that give to equal opportunity and despite of gender equality.
Commercial enterprises have also used nudging to influence consumer behavior. For example, retailers use nudges such as default options to encourage customers to purchase certain products. Another example is the use of social proof to influence consumer behavior. Social proof refers to the idea that people are more likely to engage in a behavior if they see others engaging in that behavior. Sometime a customer just needs a nudge like urgency, proof, highlights, upsell, price anchoring, showcase varieties and make the next steps clear.
The nudges are also helpful by using the social media apps like WhatsApp, Facebook, Instagram, wittier, and other social media apps through these apps consumer will influence and significant impacts on consumer purchasing goods and items. It was used as marketing communication strategy. So the social media are playing an important role in nudge strategy and provide information as well as platform for consumer decision making. The concept of nudge is main hearth of libertarian paternalism that aims to enhance the consumer choices and well-being without undermining the individual freedom, choice of freedom and limited the government intervention.
The people often buy and follow things and idea, when we gentle nudge towards better decision not forcefully. The nudges are also spreading the awareness for the emerging issue and epidemic disease and make a positive impact on the world. So the awareness can raise the consumer attention toward the sustainable act and the policy makers compensated cost and time as well. The nudge can explore through some example such as public health, education, environment and finance.
The nudges have some potential application like crime prevention, civic engagement and social good. The nudges are an important consideration like long term effects, transparency and consent and avoiding manipulation. These are reflecting the nuanced conversation about nudges. The nudge applied on the environmental and climate policy as well. It also created a significant effect and which precautions are important to adopt by the firms and individuals that protect the climate change. The nudge has a significant effect on consumer purchasing decision.