WHY COMPANIES FAIL TO UTILIZE CHOICE ARCHITECTURE?
March 23, 2025
Presenting same thing differently changes value perception
"In the past decade, there has been increasing academic interest in using behavioral economics strategies, primarily choice architecture, to “nudge” shoppers to make healthier purchases in supermarkets - study published on Science Direct.
Choice architecture is the science (and art) of designing the context in which a product of service is sold, instead of narrowing down on specs and features comparison. It is an extremely effective way to increase profitable growth.
Perception of many brands are declining and consumer distrust is on the rise. Forrester expects a 25% decline in brand loyalty in 2025. Companies are struggling to hold on to market share without commoditizing their value.
So why do most executives fail to use choice architecture to boost growth and sales? Here are 4 reasons why:
- Choice architecture design is not a quick process and requires deeper study of human nature. Most marketing and product teams lack basic holistic knowledge of human behavior.
- We live in a very short-term overly data driven A/B testing world. One can throw the word "data" in any conversation and people will almost blindly follow. And the dominant thinking is that if we can test it, why even think about it.
- Most business teams today think of customers as a data point or a segment to "conquer". Hence any effort to position products or services in humanized holistic manner is considered unrealistic.
- IT engineers and analysts are running competitive analysis work in many places. Many without proper education or experience working with human sales journey. These analyst generally look at the market from a very narrow lens of past transactional data and the tech tools at their disposal.
In the next blog we will discuss tips on incorporating choice architecture to drive profitable brand growth.
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