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Articles

Vol. 2 No. 1 (2014)

Changing Gear with Behavioural Economics: An Investigation into how Choice Architecture can Increase Brand Consideration Among Automotive Consumers

Submitted
July 22, 2014
Published
2014-07-22

Abstract

This paper explores the application of the newly revived discipline of behavioural economics with specific attention paid towards choice architecture and the automotive industry. This interpretative research studies how the application of choice architecture can heighten brand consideration among automotive consumers. Existing literature has proposed the importance that choice context, social relationships, and personal values have on final selection, however little empirical evidence has been provided to support these claims. Experimental methods simulating choice within varied contexts found three main findings. Participants were notably prone to a switch in brand preference within a commercial environment while exposed to a benefit-based choice architecture. Social validation was observed within each participant response, countering the previous neo-classical views on economic behaviour. Finally, choice context revealed significant influence on participant choice: attribute-based architecture better suited the Café environment, and benefit-based architecture more so the commercial environment. The findings call for a revaluation of how marketing strategy is approached in order to heighten brand consideration, and demands sensitivity towards the context of automotive communication.  

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