Can Marketing Help Consumers Make Decisions More in Line With Their Values?

Perhaps due to growing concerns over depleting resources, climate change, and social inequality, there is a notable rise in consumer awareness of sustainable products. Most consumers at least say they have a strong preference for products that are resource-efficient, climate-friendly, and sustainably produced. However, their purchasing behavior often does not align with these sentiments. On the flip side, companies pledging to the United Nations Sustainable Development Goals (SDGs) face the challenge of reshaping internal processes and guiding consumers toward sustainable purchases. The question is, how can marketing help bridge this so-called attitude-behavior gap?

In this article, we will present two strategies for marketing professionals to help consumers make choices more aligned with their sustainability beliefs and attitudes:

1. Harnessing the power of nudges: Nudges are subtle shifts in choice architecture that can encourage sustainable behavior without removing or changing options available to the consumer.

2. Presenting information transparently: Clear and understandable product labels can be an effective way to provide the right information that consumers need for their decisions.

Small changes in the way choices are presented can make a big difference for a decision—without taking the decision away or limiting the options. Nudges can help consumers make choices that are more in line with their values and attitudes. But, what makes a successful nudge?

An effective and easy way to support individuals in making more sustainable consumption choices is the so-called nudge. Although the idea of nudges has been around for quite some time, it became well known through Richard Thaler and Cass Sunstein’s book Nudge: Improving Decisions About Health, Wealth, and Happiness (2009). This book defines a nudge as “any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives.”

It is important to note that in this definition, individuals are free to choose whatever they want, and no option is forbidden or excluded. The authors state, “To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not.” A classic example of a nudge is the promotion of healthy food or healthy eating. In a grocery store, changing the food arrangement or placing healthy food in more prominent areas than unhealthy food is considered a change in the so-called choice architecture because all options are still available.

Companies can also use nudges to promote sustainable behavior. The “Too Good To Go” initiative to reduce food waste is a prime example. The EU generates 88 million tons of food waste every year. Of that, approximately nine million tons would still have been edible, meaning about 17 kg of wasted food per capita every year. One reason for this waste might be the best-before date, which states that food is fresh and can safely be consumed until the mentioned date. However, the best-before date is often mistaken for the expiry date. As a result, many consumers throw away food after the best-before date although it might still be safe to eat. To combat this waste, the “Too Good To Go” initiative uses nudging to remind consumers that products are often still good after their best-before dates. An “often good after—look, smell, taste” label encourages consumers to thoroughly check whether a product might still be edible after its best-before date.

This simple nudge also proved effective in an experimental study by NIM using milk as an example. In our experiment, participants were significantly more willing to use the milk after the best-before date, provided the label “often good after” was on the package. A simple nudge is often so effective that even further information, like what others do or think, has no additional effect on the willingness to consume. On the contrary, an additional label stating an expert’s advice even tended to reduce consumers’ desire to use the milk after the best-before date. The “often good after” label is straightforward and easy to understand, which is important because simplicity is an essential component to ensure the effectiveness of a nudge. Complicated nudges or ones that require the individual to process a lot of information can prove counterproductive.

• Presence in the decision-making environment: A nudge should be placed where decisions are made in the moment.
• Direct link to behavior: The best nudges are those that are intrinsically tied to the behavior they are trying to influence. They should trigger a nearly automatic response without the individuals having to make complex connections between the nudge and the desired action

For example, the “save paper—save the planet” nudge encourages people to use fewer paper towels via the green outline of the South American continent that disappears as more towels are taken out of the dispenser. When it comes to encouraging sustainable behaviors, nudges can be effective. But how do you design a nudge that genuinely influences decision-making?

The following checklist provides the essential steps to create nudges that resonate, inspire, and generate positive change. Use these steps to ensure your nudges hit their mark:

Understand your target group: What motivates customers, and what barriers prevent them from acting more sustainably?

Identify the desired behavior: Clearly define what behavior you want to encourage. Is it to waste less, recycle more, buy local, or something else?

Develop the nudge: A good nudge should be simple and encourage the desired behavior. Use understandable language and engaging visuals to get your message across. Present relevant information so consumers can make informed decisions.

Test and optimize: Test the nudge and optimize it, ideally with A/B testing and experimentation. For marketers looking to harness the power of nudges to help consumers make decisions in line with their values and preferences, the key lies in understanding the consumer, designing nudges that are simple yet directly tied to the desired behavior, and continuously testing and refining these strategies to maximize impact.

Labels are the first point of information and contact for any consumer. They can also lead to positive changes in consumer behavior regarding animal welfare, human rights, and the environment. What needs to be analyzed when placing a label on your product?

For those attributes of a product that are not observable, the so-called credence attributes, consumers have to rely on information provided by manufacturers, retailers, or other third parties. Therefore, labels are indispensable sources of information for consumers, providing details and facts varying from production to contents and ethical stances. The organic logo of the European Union is an example of a well-known product label, which indicates that the product met strict conditions when it was produced, processed, transported, or stored.

Labels can help consumers make choices consistent with their values. However, if there is uncertainty or doubt about the quality of the information or the information itself, consumers may be less willing to pay higher prices or purchase the product even if they have substantial preferences for sustainability. An example of such a label that did not reach its full potential was the voluntary German animal husbandry label, introduced in 2019. To help consumers make more informed purchase decisions on processed meat and meat products, its goal was to clearly indicate the husbandry conditions of animals.

Although most people state that humane husbandry conditions align with their ethical beliefs regarding buying meat, the data still show a large gap between consumers’ stated attitudes and their actual purchasing behaviors. Could the label bridge this gap? Although it seemed straightforward at first glance, it did not provide consumers sufficient transparency regarding husbandry categories. Our research on the consumer perception of the label’s meaning provided evidence that it was rather leading to misconceptions about animal husbandry levels of different products, thus leading to nonoptimal choices and preventing the utilization of consumers’ existing willingness to pay for more sustainable products.

The solution is to make the most relevant information easier to understand for consumers. In the example at hand, space is an important dimension of the husbandry conditions. Therefore, we redesigned the label with simple visual representations of the space animals have in the different label categories.

In a large, representative experimental study, we saw whether consumers decided differently when provided with the appropriate information. The results showed that the additional information on the animal husbandry label changed how consumers saw the product and altered their buying behavior. Additional animal husbandry information also significantly lowered the demand for products with less favorable housing conditions and drove demand for products with better housing standards—even among the more price-conscious participants. As a result, market shares significantly shifted toward more animal-friendly products.

Transparent and easily understandable information is critical in a market saturated with product choices. Effective visuals and data empower consumers to make more informed choices and align their purchases with their values. In short, labels and product information can make or break the decision-making process. The challenge for marketing is to create labels that resonate, educate, and incite action without being misleading. To help you achieve this, we have provided a checklist to guide you in crafting labels that effectively communicate purchase-critical information and foster a more transparent buying environment:

• Understand the target group’s buying behavior: Pinpoint what drives their purchase decisions. Determine what differentiates one product from another in their eyes and identify the elements for which they are willing to pay a premium.
• Clear and fast information always wins: Ensure that the information you provide is intuitive and immediately understandable at the point of sale (POS).
• Get the right look: Contemplate how essential information can best be displayed. What role can graphic design play in boosting clarity and promoting a better understanding of a product's attributes?
• Test and test again: Once you have designed your labels, it is crucial to put them to the test. Employ methods such as A/B testing and experiments to refine the presentation, thus ensuring maximum effectiveness and resonance.

Effective labeling must make information accessible and understandable to facilitate informed choices. Marketers can achieve this goal by crafting clear, visually impactful labels and rigorously testing them to ensure they inspire and guide consumer behavior in a market dense with options.

In today’s era of conscious consumption, the pursuit of sustainability is no longer just a buzzword but a genuine desire among many consumers to make environmentally friendly choices. However, the complexity of modern markets and the abundance of choice can sometimes slow down this momentum. Marketers can help drive change by providing a roadmap that clearly and conveniently helps consumers during the buying process.

The effectiveness of nudges combined with transparent, accessible information can help bridge the gap between consumer attitude and behavior. Moreover, when companies adapt and respond to these evolving consumer needs, they strengthen their brand’s reputation and contribute to a societal shift toward sustainable living for the benefit of all.

• Understanding the audience: Gain a deep understanding of the consumers' motivations and barriers to identify the underlying drivers of choices.
• The power of nudges: Simple and small changes in the choice architecture, so-called nudges, can help consumers to align their behavior with their values and attitudes.
• Transparent labeling: Create clear and transparent labels that help consumers make informed choices in line with their sustainability values.