How to Be a Smarter Consumer

They’re guided. Nudged. Designed.

This is the world of choice architecture, a term coined by behavioral economists Richard Thaler and Cass Sunstein to describe how the environment in which we make decisions can be intentionally structured to influence outcomes. It is not always malicious; sometimes it is helpful. But when combined with deep datasets and clever design, it becomes a powerful tool for manipulation.

In today's digital age, choice architecture has evolved from subtle psychology into something more surgical. Below are four real-world examples of how companies use it, often invisibly, to influence what you buy, how much you spend, and how long you stay subscribed.

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1. The Supermarket as a Behavioral Lab

We do not simply shop in supermarkets—we move through them. Every step, scent, and shelf is part of a designed experience. The goal is not just to help you find what you need—it’s to shape what you want.

• Scent cues: Fresh bread or cookies near the entrance stimulate hunger and warmth. You spend more when you're hungry and emotionally softened.
• Essentials in the back: Staples like milk and eggs are usually placed far from the entrance, guiding you past higher-margin items. The longer the walk, the more chances to deviate from your list.
• Slow music, soft lighting: Studies show that slower music and warm lighting encourage slower walking speeds and longer browsing time. More time in the store = higher cart totals.
• Shelf placement: Eye-level items often carry the highest margins. Children's cereals are placed at child eye-level. Organic or budget alternatives may be harder to spot.

None of this is accidental. These tactics are tested, iterated, and informed by years of consumer behavior data. The supermarket is not chaotic—it’s choreographed. And most of the time, we end up following the steps without noticing.

What can we do?: Be cognizant of emotional triggers. Stick to your list. Never shop hungry. Look at the lower shelves.

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2. Decoy Pricing and the Illusion of Value

Ever bought the large popcorn because it “was only a dollar more?” That is no accident. It is the decoy effect—a pricing strategy where a middle option is strategically positioned to push us towards a more expensive choice.

The movie theater popcorn example:

• Small popcorn: $4
• Medium popcorn: $7
• Large popcorn: $8

No one really wants the medium, but its presence makes the large feel like a deal. It’s not about actual value; it is about framing. The illusion of savings can be more powerful than realized savings.

This plays out online too, especially with subscription services:

• Basic: $6/month
• Standard: $12/month
• Premium: $14/month

Suddenly, you’re “saving” by buying the most expensive plan—even if you didn’t need it. It's less about actual value, more about perceived value.

What can we do?:  Define what you actually need. Set a budget ceiling. And remember: libraries offer free access to streaming services if you have a library card. Checkout Kanopy for movies, Libby for ebooks/audiobooks, and Hoopla for everything else.

Random musing: Since becoming familiar with decoy pricing, I’ve become skeptical of goods that are available in three separate priced alternatives. And you should be too, because it’s not just movie theater popcorn. If you see three options, the second one is probably lying.

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3. Dark Patterns and the Hidden Costs of Convenience

Not all bad interfaces are accidents. Some are built to steer you—to stay longer, pay more, or agree to something you didn’t intend. These are called dark patterns, and they use friction, guilt, and misdirection to shape behavior.

Common tactics include:

• Cancelation hurdles: Buried cancel buttons or multi-step flows designed to wear you down. Consider when you have tried to unsubscribe from email marketing—where is the “Unsubscribe” option within the email?
• Fake urgency: Timers that reset or create artificial scarcity, such as “Remains in cart for 10:00, 9:59, 9:58 …”
• Social proof pressure: “Most users choose this plan” or “12,000 others just signed up” are meant to validate a choice you have not made yet.
• Guilt messaging: Opt-out buttons that say “No thanks, I don’t want to save money” aim to shame you into compliance.
• Visual misdirection: Buttons that reverse traditional color meanings or hide opt-out options below the scroll line are subtle, but effective.

These aren’t just annoyances. They’re engineered systems to influence your choices and reduce your control.

What can we do?:  Use virtual cards to sign up for trials and avoid risking long-term billing. There are also certain browser tools that will reveal manipulative UI features. Additionally, you can also report “misleading or confusing website/advertisements” to the FTC and make it harder for business to intentionally mislead consumers in the future

Thought experiment: Ask yourself which of these examples (if any) are smart business decisions and which cross-the-line.

• A flash sale timer resets every time a new user lands on the company website. Everything feels urgent, but nothing is scarce. Is it fraud—or just theater?
• You close a tab on a free workout site. A pop-up appears: “You don’t want to get healthy?” There’s no product to buy. No subscription. The only revenue comes from your time on-page.
• You want to hear about product launches and discounts from a brand you trust. The only sign-up option for the company newsletter will also opt you into third-party data tracking. The company says this information will help them serve you better.

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4. The Infinite Scroll and the Dopamine Economy

Some of the most powerful examples of choice architecture do not ask for your money—they take your time. Platforms like YouTube, Instagram, and TikTok are built on design systems that convert attention into revenue. They rely on what neuroscience calls a variable reward schedule: unpredictable bursts of novelty that trigger dopamine, reinforcing the behavior and encouraging repetition.

• Infinite scroll eliminates natural exits: When there is no endpoint (e.g., no “last page” or “next chapter”), you are less likely to stop and more likely to keep going. This continuous flow is engineered to reduce self-interruption and increase session time.
• Autoplay shortens your decision window: Before you can choose whether to continue, the next video or episode has already begun. That moment of pause, where you might check the clock or redirect your focus, is designed to disappear.
• Algorithmic feeds mirror your habits back at you: These systems learn your preferences and feed them back in tighter loops. This is not just convenience; it narrows your exposure and makes exiting feel less appealing, even when the content offers diminishing value.

The result is a closed dopamine loop where your attention becomes the product. Time spent there is time not used elsewhere, and time is a financial asset. Once spent, it does not come back.

Choice architecture does not just shape what you buy; it shapes what you notice, how long you stay, and when you leave. Sometimes, the smartest decision is just knowing when to step out.

What can we do?: Up until now, we have discussed how to reduce friction. To beat doomscrolling, we must introduce friction. Set app timers that limit your usage - capitalize on when they go off and break your attention. Uninstalling all social media when you’re not using them is a mild inconvenience with excellent long-term habit breaking benefits. Lastly, it may seem extreme, but setting your phone to grayscale flattens the dopamine-triggering experiences, causing platforms to lose their edge.

Random musing: The notion that our power dynamic with social media has gotten away from us is not novel. That being said, there is no effective regulatory body for the dopamine economy. Detaching ourselves requires fighting on internal fronts. But it’s worth noting we can use their tools to tilt the outcome in our favor. And building actionable habits will free us to train the real targets of infinite scrolling.

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Why It Matters for Your Financial Life

The tools that shape your choices are often invisible, but their impact shows up in your finances. Whether it's overspending in a grocery aisle, subscribing to a service you did not need, or losing hours to a feed that sells your attention, the cost is real.

Financial planning is not just about budgeting dollars—it is about protecting the space where decisions happen. The more clearly you see the design around you, the more intentionally you can move through it. That awareness does not just save money. It compounds into a better use of your time, your energy, and your future.

Profit does not always knock. Sometimes it nudges.

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Thank you for reading. Please review our blog disclosures.

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