Behavioural Economics Ideas that You Can Use in UX Design

• 8 min read

594 Shares

The theory of behavioural economics has evolved rapidly over the last 4 decades or so. There was a point when economists assumed that all decisions people make are rational decisions. This is because economics is a rational discipline. Whenever a deviation occurred from expected “rational behaviour” an equation was modified to fit the results observed… and then economists slowly began to work with psychologists. They started to examine the assumption of rational behaviour and quickly began to see that it doesn’t exist.

In a nutshell, that’s what behavioural economics is the understanding that human beings don’t always act rationally and that we can predict that irrationality to some extent. We can also make use of that irrationality when it comes to designing experience. We can play to people’s preferences even when that preference doesn’t make a lot of sense when viewed rationally.

Let’s take a look at some examples of behavioural economics and the implications for designing experiences:

The Effect of Decision Paralysis

Early economic theory felt that the more choice you present an individual with – the happier that they will be. Choice represents freedom and rationally the more choices we have, the freer we are to make decisions and we will feel good about this.

In practice this turns out to be untrue. There’s a famous experiment involving varieties of jam in a supermarket taste test. The experimenters set up a table where customers could taste, and then if they wanted to, they could purchase jam.

One table was set up with 24 different varieties of jam on it. The second had just 6 varieties. What happened?

Well the table with the most choice was the most visited table. People tasted a lot of jam when they had 24 options to choose from. However, despite this, the people who visited the table with just 6 options to choose from bought TEN TIMES as much jam as those who visited the table with 24 options!

It turns out that traditional economic theory isn’t right. While people do like choices, there’s a moment when there are too many choices to be made. This result has been found time and time again in many different observations and experiments.

So what’s going on? The theory is that human beings are not very good at processing lots of information. In general, we can only handle 7 pieces of information (plus or minus 2 pieces) at any one time.

The more data we have to process, the more occupied the brain becomes and eventually when it can’t handle any more data; it stops trying to handle the data. People bought less jam from the table with 24 choices because they couldn’t hold all 24 choices in their minds when making a decision. So they made no purchasing decision at all. 6 varieties of jam, on the other hand, was easy enough to process and purchasing decisions were made much more frequently because of this.

The lesson for UX designers is that sometimes less really is more. Learning to manage the brain’s bandwidth can enable you to coax users into making decisions and purchases.



Author/Copyright holder: Trail Blazer Coaching. Copyright terms and licence: All rights reserved Img source

The Effect of Attribute Priming

If you have two comparable products but with distinct differences between the two, is it possible to influence your customer’s choice between the products without any hard sell involved?



Author/Copyright holder: Soe Lin. Copyright terms and licence: CC BY-ND 2.0

Researchers say it is. They have observed a phenomenon called “attribute priming” which is simply talking about an attribute of the product to a customer before they begin making a purchasing decision.

For example; in a computer store researchers were asked to approach people who wanted to buy new laptops. They were instructed to ask, half the people approached, about their memory requirements for their laptop and to ask the other half about their processor needs.

So what happened? They found that those asked about memory tended to invest in laptops with larger amounts of memory and those that were asked about processors bought laptops with higher-spec processors.

It turns out that getting someone to think about an attribute of a purchase influences their purchasing decisions. This experiment has also been repeated with food choices. The choice mentioned to a customer tended to influence them to buy the choice that had been spoken about.

That means we can encourage a choice just by mentioning it – you don’t have to adopt a “salesy” approach – you just talk about the choice. Which is very handy for UX designers looking to influence decision making.


The Effect of Free Stuff

Is it possible to discount two items by the same amount of money and in the process reverse people’s preferences for the items? (E.g if they like A more than B before the discount, can you get them to like B more than A afterwards?)

It turns out there is a way to do it. Researchers took Hershey’s Kisses and Lindt’s Lindor Chocolate Truffles. They made them available to buy for 1 cent and 15 cents respectively. Both of these prices are much lower than would be paid in a mart for the products. The participants overwhelmingly preferred the Lindor Truffles. The discount and perceived quality of the product driving their choices.

Then the researchers dropped the price of both by a single cent. The Kisses were now free and the Lindor Truffles were 14 cents. This changed people’s approach and the preferences immediately reversed. This despite the fact that nothing had really changed. The truffles were still 14 cents more than the Kisses. The levels of enjoyment at eating them would not change. What had changed is that Kisses were now FREE.

People love free stuff. It’s why when you go to a supermarket the offers are buy “1 get 1 free!” and not “Buy 2 and get 50% off!” though they’re the same thing.

The power of free can be used to drive commitment in decision making. It’s one of the reasons that most businesses trying to build a list online have a free product in exchange for sign-up. It’s something that UX designers can tap into when they know it exists.



Author/Copyright holder: drip&ju. Copyright terms and licence: CC BY-NC-ND 2.0

Summary

Behavioural economics has a lot to teach UX designers. We expected to see a lot more developments in this field that have practical implications for the design of products. The three techniques above are just a handful of the techniques already discovered in this field.

 Header Image: Author/Copyright holder: Unknown. Copyright terms and licence: Unknown. Img Source

Topics in This Article

Learn More in This Course:

AI for Designers

9 days
18 % booked
View Course

What You Should Read Next

  • Read full article
    Use Circular Design To Reverse Harm - Article hero image
    Interaction Design Foundation logo

    Use Circular Design To Reverse Harm

    Nature is circular. Nothing ever goes to waste. The banana peel we discard degrades into nutritious compost for plants. Even the remains of deceased animals and humans disintegrate into the soil. Human engineering and design, on the other hand, are linear processes. And that has put us on a one-way

    Social shares
    425
    Published
    Read Article
  • Read full article
    Recycling is Not Enough. Let's Design for Reuse - Article hero image
    Interaction Design Foundation logo

    Recycling is Not Enough. Let's Design for Reuse

    “We live in the age of technology and luxury, but we also live in the age of waste,” Don Norman explains. In this video, the grandfather of User Experience Design, Don Norman unpacks the world of waste we have collectively generated. He examines aspects of our daily lives that we take for granted an

    Social shares
    458
    Published
    Read Article
  • Read full article
    Tree Testing: A Complete Guide - Article hero image
    Interaction Design Foundation logo

    Tree Testing: A Complete Guide

    Tree Testing reveals where users lose their way in your navigation. It’s a focused approach to evaluate a site's navigational structure. But it’s more useful in certain scenarios—so, you need to understand where you’ll benefit from tree testing the most. Learn about the pros and cons of testing tool

    Social shares
    687
    Published
    Read Article
  • Read full article
    How to Design Ethically: Expert Advice from Guthrie Weinschenk - Article hero image
    Interaction Design Foundation logo

    How to Design Ethically: Expert Advice from Guthrie Weinschenk

    As UX designers, we wield immense power to influence our users’ lives. We have the dual responsibility of catering to the interests of our users, as well as that of our sponsors (employers, clients and other business stakeholders). This can sometimes put designers in uncomfortable situations and rai

    Social shares
    546
    Published
    Read Article
  • Read full article
    Anything Artificial We Can Design Better - Article hero image
    Interaction Design Foundation logo

    Anything Artificial We Can Design Better

    If you look out the window, you’ll realize many things you see are artificial—buildings, cars, parks, electricity posts, water pipes, etc.—and most of those things were designed by humans. Founding father of UX, Don Norman introduces you to artificiality and how designers shape the world.[[video:142

    Social shares
    411
    Published
    Read Article
  • Read full article
    Stop the Generic Portfolio Trap! Design a Stand-Out Portfolio for Your UX/UI Niche - Article hero image
    Interaction Design Foundation logo

    Stop the Generic Portfolio Trap! Design a Stand-Out Portfolio for Your UX/UI Niche

    Your UX/UI portfolio is your ticket to your dream job, brief or client. It’s your opportunity to show off your expertise, creativity, and the tangible impact of your work. No matter your niche, your portfolio should be as innovative and polished as the projects it represents.Think of your portfolio

    Social shares
    291
    Published
    Read Article
  • Read full article
    Enter the World of Social VR - Article hero image
    Interaction Design Foundation logo

    Enter the World of Social VR

    Our metaverse is big—as in massive and expanding, to be more exact—and there’s plenty of room to trailblaze inside of all of that digital space, so if virtual reality (VR) can teleport, catapult, and integrate human users into brand-new worlds of excitement, discovery, and learning (which it can, by

    Social shares
    561
    Published
    Read Article
  • Read full article
    8 Talks by Women to Inspire UX Designers - Article hero image
    Interaction Design Foundation logo

    8 Talks by Women to Inspire UX Designers

    User Experience design, like so many other disciplines, has a lower representation of women as compared to men. Things are changing now, though. Slowly, but surely. From strategy to tactics and from ideas to actionable tips, here is a curated playlist of talks by, and stories of just some of the mos

    Social shares
    658
    Published
    Read Article
  • Read full article
    UX Storyboards: Ultimate Guide - Article hero image
    Interaction Design Foundation logo

    UX Storyboards: Ultimate Guide

    In user experience design, we use techniques like workshops and interviews to understand users. We turn our research into user stories and process flows. We use personas and wireframes to share our ideas with our teams.But it’s important to remember the real people we design for. We need to know wha

    Social shares
    782
    Published
    Read Article
  • Read full article
    Top 6 Tips to Make Your UX Portfolio Stand Out - Article hero image
    Interaction Design Foundation logo

    Top 6 Tips to Make Your UX Portfolio Stand Out

    Whether you’re a UX designer looking for your first UX job or a seasoned designer looking to further your career, your UX portfolio is arguably one of the most important projects you’ll work on. Your portfolio is the first touchpoint you have with the recruiters; it’s your chance to make an impactfu

    Social shares
    708
    Published
    Read Article

Top Articles

Top Topic Definitions

Feel Stuck?
Want Better Job Options?

AI is replacing jobs everywhere, yet design jobs are booming with a projected 45% job growth. With design skills, you can create products and services people love. More love means more impact and greater salary potential.

At IxDF, we help you from your first course to your next job, all in one place.

See How Design Skills Turn Into Job Options
Privacy Settings
By using this site, you accept our Cookie Policy and Terms of Use.
Customize
Accept all

Be the One Who Inspires

People remember who shares great ideas.

Share on:

Academic Credibility — On Autopilot

Don't waste time googling citation formats. Just copy, paste and look legit in seconds.

Feel stuck? Want Freedom?

Get one powerful email each week, like 322,594 others.

Learn to design a life you love.

Next email in: