Practical Applications of Behavioural Economics Concepts in User Experience (UX) Development

Behavioural economics, a field that studies how human irrationality influences economic decisions, has a lot to teach UX designers. This fascinating discipline posits that human beings don't always act rationally, and irrationality can be predicted to some extent.

One intriguing finding in behavioural economics is the phenomenon of decision paralysis. The more choices presented to an individual, the less likely they are to make a decision. This was evident in an experiment involving 24 and 6 varieties of jam, where people bought ten times more jam from the table with fewer choices due to decision paralysis.

Another interesting discovery is the power of free products in driving commitment in decision making. For instance, businesses trying to build a list online can offer a free product in exchange for sign-up, leveraging this psychological trick.

Researchers have also observed a phenomenon called "attribute priming," where mentioning an attribute of a product before a purchasing decision can influence the customer's choice. This was demonstrated in a study on laptops, where asking about memory led to purchases of laptops with larger amounts of memory, and asking about processors led to purchases of laptops with higher-spec processors.

The study on Hershey's Kisses and Lindt's Lindor Chocolate Truffles further illustrates this point. People overwhelmingly preferred the Lindor Truffles when they were more expensive, but their preferences immediately reversed when the Kisses were made free.

Behavioural economics also sheds light on the influence of specific attributes on a customer's choice. For example, mentioning a product's memory requirements or processor needs can significantly impact a customer's decision when buying a laptop.

For UX designers, these findings mean that sometimes presenting fewer options can encourage users to make decisions and purchases. This is because a human brain can only handle around 7 pieces of information at any one time, making it difficult to process large amounts of data.

Moreover, the techniques discussed above are just a handful of the techniques already discovered in the field of behavioural economics. As UX designers continue to incorporate these insights, they can create more intuitive and effective designs that cater to human irrationality, ultimately leading to improved user experiences and increased conversions.

Practical Applications of Behavioural Economics Concepts in User Experience (UX) Development