Nudging technique in retail : increasing consumer consumption

Abstract

Changes in consumer behaviour, coupled with shifting purchasing habits, have led to a new setting, one in which the retailers are seeking novel means of keeping potential consumers inside their stores for the maximum duration possible. This prolonged time span contributes to the increased frequency of impulsive actions, thus resulting in greater customer spending. Impulsive buyers are the most crucial target audience for retailers, for they are purely driven by emotion, making decisions without prior preparation or information gathering. Through the grasp of psychological science, behavioural and cognitive functioning, it is possible to discern the factors that make specific retailers and their stores more appealing than others. The main purpose of this paper is to point out a relatively new concept and a technique, called “nudging”, and to showcase the methods of gaining new customers through its utilisation within the Croatian retail market. The nudging technique is not a forceful one, opting to employ imperceptible and subtle means, such as playing certain music, utilising carefully selected scents, colours and lighting within the store, which all serve to improve consumer perception and satisfaction. The retailer can stand out from the competition, precisely by using nudging, which intertwines sensory perception and other psychological factors, incorporating them in the overall store design. For this particular purpose, a survey was conducted among Croatian customers, which examined the presence of specific nudging techniques in retail, as well as their effects on the consumer behaviour. The research results concluded that the Croatian retailers do indeed utilise some nudging techniques which, although perceived by their customers are ultimately left unaware of the impact they have on their respective decision-making process and behaviour.