Economic Behaviour: A Latent Risk?

How to Influence User Behaviour Without Betraying Design Ethics

UX|UI DESIGN

2/20/20254 min read

Behavioral economics is a discipline that studies how people make decisions in economic situations, but its principles are incredibly valuable for UX design. Understanding how people behave, think, and decide can help us influence their behavior ethically and responsibly. In this article, we will explore some key principles of behavioral economics and how to apply them to UX design to enhance conversion, user satisfaction, and ultimately achieve our business goals.

Principles of Behavioral Economics and their Application in UX

Decoy Effect

Presenting a less attractive option (the decoy) to make another option seem more valuable.

Example: On a subscription website, offering three plans: a basic one (limited), a premium one (expensive), and an intermediate one (with attractive pricing and features). The intermediate plan becomes the most popular due to the decoy effect.

UX Thought: How can we guide users towards the option that benefits us most without being manipulative? What information should we highlight to make the choice clear and beneficial for the user?

Loss Aversion

People tend to value what they already possess more and avoid losses.

Example: A productivity app shows a message saying "You saved 10 minutes today" instead of "You still have 10 minutes left to work". Focusing on gains (saving) motivates the user more.

UX Thought: How can we frame our messages to highlight gains and avoid the feeling of loss? What elements can we design to make users feel they've already invested time or effort in our product and would lose something valuable if they abandon it?

Reference: Reward alert on www.rescuetime.com – after 3 hours of continuous work, Instagram will open.

Confirmation Bias

People tend to seek information that confirms their pre-existing beliefs.

Example: A news website shows articles related to the user's previous searches, reinforcing their interests and keeping them engaged.

UX Thought: How can we personalize the user experience to show them relevant information that confirms their expectations? How can we ethically use user data to anticipate their needs and provide valuable content?

Scarcity

Products or services that are scarce are perceived as more valuable.

Example: An e-commerce website displays a message saying "Only 3 units left" for a particular product, creating a sense of urgency and motivating purchases.

UX Thought: How can we use scarcity honestly to motivate users to make a decision? What visual elements can we use to communicate scarcity clearly and credibly?

Social Proof

People tend to do what others are doing.

Example: A review website shows testimonials from satisfied customers and the number of people who have downloaded an app, building trust and credibility.

UX Thought: How can we show users that others have already used and valued our product or service? What kind of information (testimonials, reviews, statistics) can be most persuasive to our target audience?

Practical Applications in UX Design

Call-to-Action Design: Using the decoy effect and loss aversion to create more effective calls-to-action.
Personalization of Experience: Using confirmation bias to offer personalized recommendations and content.
Creating a Sense of Urgency: Using scarcity to motivate users to make quick decisions.
Displaying Testimonials and Reviews: Using social proof to build trust and credibility.
Gamification: Using rewards and challenges to motivate users to take specific actions.

Summary

Behavioral economics provides valuable tools for ethically and responsibly influencing user behavior. By understanding how people make decisions, we can design more effective, personalized user experiences that meet both user needs and business objectives.

Key Points

Behavioral economics studies how people make decisions.
Principles like the decoy effect, loss aversion, confirmation bias, scarcity, and social proof are relevant to UX design.
Applying behavioral economics principles allows us to influence user behavior ethically and responsibly.
UX thinking helps us apply these principles strategically and user-centered.

Glossary

Confirmation Bias: The tendency of people to seek, interpret, and remember information that confirms their existing beliefs.
Decoy Effect: A strategy where a less attractive option is introduced to make another option seem more valuable.
Gamification: The use of game mechanics (points, rewards, challenges) in non-game contexts to motivate user behavior.
Loss Aversion: People's tendency to avoid losses more than they seek equivalent gains.
Scarcity: The perception that a product or service is more valuable when its availability is limited.
Social Proof: The tendency of people to follow the actions or decisions of others, especially in uncertain situations.
UX (User Experience): A field that studies how users interact with a product or service to optimize their experience and satisfaction.