How Effective Is Nudging?
Foreword
At TDL, our role is to translate science. This article is part of a series on cutting edge research that has the potential to create positive social impact. While the research is inherently specific, we believe that the insights gleaned from each piece in this series are relevant to behavioral science practitioners in many different fields. At TDL, we are always looking for ways to translate science into impact. If you would like to chat with us about a potential collaboration, feel free to contact us.
Introduction
The concept of nudging has recently grown in popularity. This is partially due to how exciting and innovative these types of interventions can be. But, what might be more important than their innovativeness and excitability is if they actually work. And if they do, which conditions are important for implementing nudges, and what can we learn from studying them on a large scale?
As an applied behavioral science research firm, The Decision Lab is interested in learning more about the effectiveness of nudges and how they can be better implemented to drive social change. To further this interest, we reached out to Dr. Dennis Hummel and Prof. Alexander Maedche to learn about their work on studying the effectiveness of nudges and their attempt at classifying them with the purpose of guiding future research.
A full version of some of Dennis and Alexander’s studies are available here:
References
1. Thaler, R. H., and Sunstein, C. R. 2008. Nudge: Improving Decisions About Health, Wealth, and Happiness, Yale University Press: New Haven & London.
2. Sunstein, C. R. 2017. “Nudges that fail,” Behavioural Public Policy (1:1), pp. 4–25.
3. Hummel, D., & Maedche, A. (2019). How effective is nudging? A quantitative review on the effect sizes and limits of empirical nudging studies. Journal of Behavioral and Experimental Economics, 80, 47-58.
4. Weinmann, M., Schneider, C., and vom Brocke, J. 2016. “Digital Nudging,” Business & Information Systems Engineering, Springer Fachmedien Wiesbaden.
5. Nickerson, R. C., Varshney, U., and Muntermann, J. 2013. “A method for taxonomy development and its application in information systems,” European Journal of Information Systems (22:3), pp. 336–359.
6. Ingendahl, M., Hummel, D., Vogel, T., & Maedche, A. (2020). Who can be nudged? Examining nudging effectiveness in context of Need for Cognition and Need for Uniqueness. Journal of Consumer Behaviour.
About the Authors
Dennis Hummel
Dr. Dennis Hummel is a doctoral researcher at the Institute of Information Systems and Marketing (IISM), within the Karlsruhe Institute of Technology (KIT), receiving his doctoral degree in 2019. He holds a B.Sc. in Business Administration from the University of Mannheim and an M.Sc. in Managerial and Financial Economics from HEC Paris. His research focuses on consumer behavior in digital channels, more specifically, guiding consumer behavior using digital nudges.
Alexander Maedche
Prof. Alexander Maedche is a professor at the Karlsruhe Institute of Technology (KIT) and head of the Information Systems & Service Design research group at the Institute of Information Systems and Marketing (IISM) and the Karlsruhe Service Research Institute (KSRI). Prof. Maedche focuses his research on designing interactive and intelligent digital service systems. Prof. Maedche’s work is published in leading international journals such as Management Information Systems Quarterly (MISQ), Journal of the Association of Information Systems (JAIS), Business Process Management Journal (BPMJ), Information & Software Systems Technology, IEEE Intelligent Systems, SIGMOD Record, and AI Magazine.
Nathan Collett
Nathan Collett studies decision-making and philosophy at McGill University. Experiences that inform his interdisciplinary mindset include a fellowship in the Research Group on Constitutional Studies, research at the Montreal Neurological Institute, a Harvard University architecture program, a fascination with modern physics, and several years as a technical director, program coordinator, and counselor at a youth-run summer camp on Gabriola Island. An upcoming academic project will focus on the political and philosophical consequences of emerging findings in behavioral science. He grew up in British Columbia, spending roughly equal time reading and exploring the outdoors, which ensured a lasting appreciation for nature. He prioritizes creativity, inclusion, sustainability, and integrity in all of his work.
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I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.
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BEHAVIORAL SCIENTIST
GLOBAL COFFEEHOUSE CHAIN PROJECT
OUR CLIENT SUCCESS
$0M
Annual Revenue Increase
By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.
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Increase in Monthly Users
By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.
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Reduction In Design Time
By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.
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Reduction in Client Drop-Off
By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%
