Use of color-based visual nudges in affecting consumer behavior in FMCG space

Abstract

Different colors trigger different emotional responses in human beings. There is substantial literature available on the genetic, behavioral, and cultural factors that contribute to how humans respond to color nudges. In the present study, we evaluate purchasing behavior based on color nudges. The hypothesis undertaken for validation is whether the use of red color (in item or packaging) is anyway tied to increased sales or engagement. The heuristic in play is the triggering of emotions (passion or excitement). Further, since emotional purchasing decisions are of greater importance to hedonic products than purely utilitarian ones, we evaluate if color-based nudges are more powerful in purchasing decisions around hedonic products. Lastly, since this study was conducted during the SARS-CoV-2 pandemic in 2021, we evaluate if this color-based nudging is more effective in a real, live store setting than in an online shopping experience. The present study was conducted in two models. Model | simulated a store shelf in a room setting on the campus of Indian Institute of Management, Bangalore. Eighteen pairs of items (red or white) were placed randomly across two shelves. No pricing was assigned. Hedonic and utilitarian everyday items were mixed in no purposeful order. Participants, comprising mainly of graduate-level students, were allowed to choose as many or as few items as they liked. They were told to choose the way they would buy in a real-world experiment. This choice behavior was recorded and studied. In Model 2, five pairs of the eighteen pair choices were randomized and shown to a group of participants in an online questionnaire. Participants were asked to make red or white choices and state the reasons for their choice. Other than studying variations in behavior within each model, variations between models were studied. The results tell a compelling story in favor of using color-based nudges, packaging & promotional material to drive sales. Candidates chose emotion-based causes to attribute to the choice of a red item over a white item in both models | and 2. Furthermore, red product placement can be important to drive sales. When candidates saw a red item first, they made more purchases than when they saw a white item first. Red items were picked up with greater likelihood than the control white counterpart for hedonic products. This includes products like potato chips which were simply placed in red vs white bags, with the chips being clearly visible. This shows that packaging has a powerful role to play in the way customers make purchase decisions for impulsive buys, or for products that they seek pleasure in. No significant difference in purchase behavior was found between Models | and 2, and further investigation outside of a pandemic situation is necessary to identify causes for this. The present study can be further improved by repeating the experiment with true cash involvement to replicate a real-world shopping experience more closely. Furthermore, a study of greater complexity involving mix or gradients of color (red, blue, green, etc) can provide insightful results in color-based nudging.