Case 1: Nudge Marketing Over the past decade, “nudge marketing” has become a wid

Question

Case 1: Nudge Marketing

Over the past decade, “nudge marketing” has become a widely practiced technique to shape consumer choice. Many companies are now employing strategies to subconsciously influence how and where customers spend money. Nudges can take the form of default settings, such as one European railroad’s automatic reservation of seats with every ticket purchase unless customers manually opt-out. They can also take the form of environmental cues, as with one supermarket’s placement of green arrows on the floor in a path to the produce section. Nudging is controversial both due to how it works and the ends towards which it is directed. Through nudges, consumers are involuntarily guided to make choices perceived to benefit them or the companies they patronize. Nudges operate in a way that some perceive to be an unavoidable aspect of life and others perceive as a violation of individual autonomy.

Businesses can use nudges to help customers. For example, the use of nudges to direct people to purchase produce led to a 9% increase in produce sales. According to one professor of marketing, nudges can also “have virtuous effects, encouraging consumers to donate their organs, reduce their consumption of energy, and save more money.” Thus, we might think that we should support nudging for its potential to create a happier and healthier society. However, even if we do, we might wonder if businesses are in a position to determine what makes for a healthy society.

Businesses can also use nudges to increase profit. Some restaurants, for example, include overpriced “decoy” items, omit dollar signs, and name dishes after family members to encourage sales. In another profit-motivated example, Facebook implemented a program that automatically posted members’ purchases for all to see, resulting in a lawsuit against Facebook and cooperating advertisers. Some argue that profit-motivated nudging is harmless and stimulates the economy; others argue that it unfairly manipulates customers into purchases they would not consciously choose.

Much of the controversy over nudging surrounds its methods. On one hand, critics argue that nudging manipulates consumers rather than allowing them to make informed, rational decisions. Real character stems from the development of our rational capacities, not from the temporary effects of subconscious motivation. Critics also argue that average individuals are in a better position to make decisions about their own wellbeing than businesses are. On the other hand, supporters of nudges argue that because default settings and environmental cues are unavoidable, we may as well put them to good use. However stores are designed, products are placed, or user interfaces are programmed, people will always subconsciously experience some options as more appealing and other options as less appealing.

Question: should “nudge marketing” be banned, then? Why or why not?

STEP 1

Do a formal analysis of each side of the argument as presented within your case.

What are the premises, conclusion, and "issue" of the "pro" side of the argument?

What are the premises, conclusion, and "issue" of the "con" side of the argument?

Also, say what kind of arguments are being provided on each side.

Remember, a formal analysis looks like this:
P1:
P2:
P3:
______
Conclusion:
Issue:
Kind of argument:

So you'll be writing two formal analyses here.

STEP 2

Then, at the end of your paper, please ,explain which argument that you've examined is the worstargument, and which argument that you've examined is the best argument.   

in other words, you're going to find the most faulty argument you analyzed and the best and most rationalargument you analyzed.

When you're doing this, use specific terms to evaluate how good/bad deductive arguments are

A deductive argument can be "valid" or "invalid"

And a deductive argument can be "sound" or unsound"

So if you're looking at a deductive argument, you should explain how the argument is or is not "valid," and how it is, or is not, "sound"

Remember that from Chapter 5, yo uuse specific terms to evaluate how good/bad inductive arguments are

An inductive argument can be "strong" or "weak"

And an inductive argument can be "cogent" or "uncogent"

So if you're looking at an inductive argument, you should explain how the argument is "strong/weak" and how it is "cogent/uncogent"

Explanation / Answer

Nudge refers to a term used in any aspect of choice architecture which indeed facilitates to alter people’s behavior in a predictable way without forbidding any options or considerably altering their economic incentives. Various research studies in fact do facilitate to enumerate that nudge marketing indeed is regarded as a powerful tool used in formulating effective marketing policies and strategies.

Sometimes indecisiveness is regarded as an enormous barrier to sale. Thus it’s important to effectively nudge your online consumers towards making a choice by making it easy for them to compare the choice they’re having trouble with against other goods and services. However it can be effectively done by developing a dedicated web based product information scenario where consumer can use the extra info to make the correct decisions or else they might again simply start the research process which indeed can affect their procurement decision process.

However nobody likes an aggressive sales playing field thus by leaving arrows to guide rather than forcing your ads you indeed can help consumers follow their own interests and sales will follow their perception. Thus as you prove that you have quality and consistency nudge slowly over period of time and customers will automatically follow you.

Nudge-type interventions indeed can facilitate to reinforce materialist values, economic self-interest and erode intrinsic motivation. However as nudge interventions do have only a short-term impact thus empirical research highlights that promoting selfish values actually suppresses altruistic and environment values, so promoting energy saving by highlighting financial savings may be effective in the short-term but risks undermining longer-term goals of sustainable living.

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