Think of the last website you’ve frequented. Did you freely decide where to look first, or did the design of the website help make your decision for you?
Designers have been utilizing behavioral economics, which is the study of human decision-making, to create websites that lead users to their desired outcomes.
Design influences behavior by reducing the mental effort required to understand information, directing attention, and making certain actions feel more natural or appealing. This is done through the utilization of 5 behavioral economic principles for designers; let’s take a look at how each one affects users and their benefits.
Anchoring

Every Christmas I create the gifts that I give to my friends and family. One of my most requested gifts is winter scarves. Seeing that we are entering October, I thought it would be a great head start to order my yarn to complete my Christmas projects.
I headed to Walmart’s website to see what is available. Original prices are shown crossed out with the current prices shown in green next to it. Star ratings and the number of reviews are shown below the yarn names support the quality of the yarn.
The original prices set a customer’s frame of reference; they immediately latch on to it. Once customers see that the price has decreased, it will make the product feel inexpensive in comparison to its original price. This is why it was important for designers to add the star ratings and reviews to disprove that the lowered price was in result of the product’s quality.
Businesses must ensure that they display correct pricing because once a customer anchors to a price, they will pay less than it but never more.
Defaulting

How interesting has it been, this world that holds every subscription imaginable being thrown at us by every company. Ellen Lupton described defaulting through the scenario of a customer making a choice between three different service plans will most likely choose the middle option. Defaulting explains that people often stick with an option that’s already selected because it reduces the effort they have to make in the decision process.
Grammarly presents 3 plans that a user can choose based on their individual needs. Under each plan name, there is a short description of what will be achieved using the plan. For their middle plan, they note that it is best for students and offers a free 10-day trial to try the plan before committing.
Listing all of the perks that come with each plan alienates the basic plan from the Pro and Enterprise plan. Two benefits for a plan is outnumbered by 8. The names of each plan also help the user decide what they want, all they have to know is whether they are in school or running a business, and the choice between the middle and right options is made.
Friction Costs


In Brideable’s article The Top 5 Behavioural Economics Principles for Designers it explained that reducing friction costs, which are little speed bumps that people hit when engaging with a service, will increase the likelihood of sales.
Amazon did this recently by its “1-click” feature, which uses previous user payment history to allow a user to bypass a shopping cart for purchases. All a user has to click is “buy now” and the order is made automatically. Another cool feature that Amazon added that reduces friction costs is making the option available for users to add an item to an already existing order (shown above). This also helps the user avoid creating a shopping cart, selecting a shipping and payment method, which ensures less opportunities for a customer to back out of a sale.
Ostrich Effect

The Ostrich Effect became a prominent term in the finance world in 2005, when Dan Galai and Orly Sade defined it as “the avoidance of apparently risky financial situations by pretending they do not exist”.
Ostrich’s website is a clever creation that tackles people’s avoidance of their financial information when they expect it to be negative. Instead of using shame to get users to change their financial behaviors, this website changes financial behaviors into approachable challenges.
The site uses names such as “Drop it Like It’s Hot” for eliminating unnecessary subscriptions, “Clear Your Cards” for paying off credit cards, and even “Sunday Scaries”, which encourages users to routinely review their finances. Users can earn points and badges, receive notifications, and complete check-ins as they progress.
This supports what I’ve learned regarding the experience economy being the most rewarding way to design. How a designer makes a user feel will determine that user’s behaviors, which is beneficial for businesses that want to ensure sales.
Social Proof

In the journal article A Room with a Viewpoint: Using Social Norms to Motivate Environmental Conservation in Hotels descriptive norms are defined to motivate both private and public actions by informing individuals of what is likely to be effective or adaptive behavior in that situation. The behavioral principle of social proof is that when uncertain, people often look at what other people are doing for guidance.
One major example of this principle is the website Yelp. People go on Yelp to leave reviews on establishments for other people to view and determine whether or not they want to go there themselves.
Any establishments that have high star ratings and a high number of positive reviews will attract more visits than an establishment with no ratings or reviews.
Conclusion
Designers who understand the benefits of behavioral economics will have greater success with making something visually appealing to users. Having insight into how people perceive information, where their attention travels, and how visual experiences can shape the decisions that follow puts them at a huge advantage.













