Influence of Nudge Theory on Consumer Behaviour

Author(s)	Vidya Prakash Hattangadi
Country	India
Abstract	To nudge is to encourage or to persuade someone to do something in a way for wanting the aimed result. Nudging is done gently rather than forcefully. Nudging is always done subtly to encourage people to make decisions that are in their broad self-interest. Richard Thaler and Cass Sunstein wrote their book Nudge, which was published in 2008, in which they wrote the Nudge theory. ‘Nudging’, refers to altering the decision-making environment in the context of biases and ‘irrational’ behaviour that decision-makers often display. Nudge theory as a concept comes within behavioral economics framework. Behavioral economics is a field that incorporates economics and psychology to understand how people make decisions in the real world, often turning from the rational assumptions of traditional economic models. It explores how emotions, social influences, and thinking biases impact economic choices. This field studies how psychological, social, and cognitive factors influence economic decisions.
Keywords	Nudge Theory, Behavioural Economics, Richard Thaler & Cass Sunstein, Buyer Behaviour, Cognitive Behaviour, Government Practices, Mindset.
Field	Business Administration
Published In	Volume 7, Issue 3, May-June 2025
Published On	2025-05-18
DOI	https://doi.org/10.36948/ijfmr.2025.v07i03.45254
Short DOI	https://doi.org/g9kvfd

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