Author(s) :

Meghana Nandigam.

Volume/Issue :

Abstract :

This paper looks at how Amazon and Walmart use psychology to influence the way people shop. Using ideas from behavioral economics, it focuses on four main strategies: scarcity cues, loyalty programs, price framing, and anchoring. Amazon does this mostly through digital tools like Prime, countdown timers, and personalized pricing, while Walmart relies on in-store tactics such as product placement, sale signs, and its “Everyday Low Prices” slogan. Even though one company is online, and the other is physical, both use nudges that push customers to spend more without always realizing it. The paper also discusses how these strategies affect consumer decision-making, what they mean for shoppers, and why understanding them is important. Finally, it points out the limits of this research and suggests that future studies should explore how nudges can be both helpful and harmful. Throughout this paper, the term “digital nudges” refers to behavioral cues used in online retail settings such as Amazon, while “physical nudges” describe those present in in-store environments such as Walmart.