Behavioral Economics and Technology Innovation: Using Choice Architecture to Build and Scale Products

Abstract

Abstract With technology being a part of our everyday lives, there has never been a more critical time to dive deeper and understand what drives us to choose specific products. The effectiveness with which technology companies use behavioral economics principles, such as choice architecture, in product development can drive better outcomes both for the organisation and the customer. The use of behavioral economics has become increasingly popular in. recent years. By leveraging insights from behavioral economics, technology companies can create products that better align with users’ needs and preferences, and that are more likely to be adopted over time. This article critically reviews existing and emerging academic research, addressing three key areas: how behavioral economics appeared and its growth in the last five decades, behavioral economics in practice through the use of Choice Architecture, and how behavioral insights are currently applied in the design of technology products. In the present study, I have undertaken a review of existing literature and research studies by analysing and synthesising key points. The review was conducted by analysing and reading existing literature on the topic, including peer-reviewed journal articles, books and industry reports. Overall, this visionary paper provides a contribution to the field of technology product development, highlighting potential strategies of using behavioral economics to better design, build and scale products.