3. “We are to thinking as
cats are to swimming, we
can do it if we have to.”
Daniel Kahneman, Author
“Thinking Fast and Slow”
4. What influences our decisions?
Why and when are we irrational?
How can we influence behaviour
(positively)?
5. Acknowledgements
A Beginners Guide to Irrationality by
Dan Ariely on Coursera
Brains Behaviour and Design Group,
Institude of Design
Behaviour Economics and
Neuroscience 101 by Tapestry Works
20. Rational Model of Motivation
Behaviour
MOTIVATION
Expectation of
Fulfillment
Desired
Behaviour
21. When We Are Not Motivated
Sisyphus Condition is doing a task over & over again without meaning.
People then experience cognitive dissonance.
22. Cognitive Dissonance
The feeling of discomfort where our beliefs and
behaviours are inconsistent.
E.g. The fox & the sour grapes
To reduce this discomfort, we
Change our mindset or behaviour
Justify our behaviour by rationalizing it
Justify our behaviour by bargaining with ourselves
24. Experiment
By Dan Ariely
In an experiment, participants were told build a series of
Lego figures, paying them successively less for each one.
25. Experiment
By Dan Ariely
GROUP 1
GROUP 2
• Kept in a box
• Broken down right in front of them
• Disassembled after they left
• Disassembled pieces given back
to them to restart
26. Acknowledgement on performance can increase motivation.
Team outings
“Thanks for helping the team!”
“I see you have lost some weight!”
“Good job!”
29. Rational Model of Self-Control
Desire
SELF-CONTROL
GIVE IN TO DESIRE
Desirable
Behaviour
Undesirable
Behaviour
Reward or
Desired consequence
Punishment or
Undesired consequence
30. Rational Model of Self-Control
Should I have
Should I have
PRATA?
salad?
700
calories
250
calories
31. When Our Self-Control Fails
Present focus bias
People make decisions based on their present feelings.
33. When Our Self-Control Fails
Ego Depletion
Our ability to resist temptation weakens over time.
34. When Our Self-Control Fails
What-The-Hell Effect
People give up trying once
they have slipped up.
E.g. Dieting
35. How Can We Control Our Desires?
Reward Substitution
Giving yourself an immediate reward for getting through
each step towards a long-term goal.
Example: “I
want to lose 10kg at 1kg per month.”
MAY
JUN
JUL
AUG
SEP
80kg
79kg
78kg
79kg
78kg
OCT
NOV
DEC
36. How Can We Control Our Desires?
PROBLEM: People find it difficult to stick by their decisions.
Ulysses Contract
A contract binding yourself now to prevent future
misbehaviour.
37. Stickk.com
“I pledge to lose 10kg at 1kg per month.”
If you lose 1kg within a month,
you get your money back.
If you don’t lose 1kg within a month,
you lose your money.
It goes to a charity that you hate.
People are reminded of the promise they made to themselves.
40. Rational Model of Decision-Making
1
List the options
2
Weigh pros and cons
3
Choose the best option
41. Which of these is more likely to happen?
Death by shark attack?
Death by falling
airplane parts?
1 in 300 million
1 in 10 million
42. How Do We Make Decisions?
People often use mental shortcuts to make decisions.
Availability
They tend to decide with the most recent/vivid examples that come to mind.
Example:
People tend avoid beach vacations after
recent reports of shark attacks.
43. How Do We Make Decisions?
People often use mental shortcuts to make decisions.
Status Quo Bias
People avoid making decisions if they can.
Example: When credit card companies request you to mail in
application forms if you want an upgrade of your account.
44. What Influences Decision Making?
Choice Architecture
Definition: The way stimuli are designed and presented to sway decisions
Choice
Sets
Defaults
46. Defaults
Human Organ Transplant Act (Singapore) states:
• “All Singapore Citizens and Permanent Residents 21 years old and above,
and are not mentally disordered, are included under HOTA.”
• “Should you for any reason decide against donating your organs upon death,
you can opt out by completing the opt-out form.”
48. Hacking the Process
Our decision making process:
Wakes up with a
splitting headache
I have
headache.
Worry if it is a
tumor
Look at google map for Go to KTPH website for
nearest A&E
directions
My friends told
me better to
go A&E
What kind of behavioural
pattern is this?
Which is the
nearest
A&E?
How do I get
to KTPH?
At which point can I influence and nudge
this form of behaviour?
49. A New Lens to Understand
Our Customers
Understand
Observe/
Interview
Explain
Explore
Strategize
Prototype
Generate Ideas
Prototype